9-12-2023 (BANGKOK) Commencing January 1, 2024, Thai workers across the country will experience changes in the daily minimum wage, with rates ranging from 330 to 370 baht, as confirmed by the labor ministry. The tripartite committee on minimum daily wages, consisting of representatives from the business sector, labor, and the government, endorsed these new rates in their recent meeting on Friday.
Presently, the daily minimum wage varies between 328 to 354 baht. The upcoming adjustments will see an increase of 2 to 16 baht, averaging 2.4%. Phuket stands out with the highest daily wage of 370 baht, a raise from the current 354 baht, while provinces like Narathiwat, Pattani, and Yala will witness the lowest wage at 330 baht, up from 328 baht.
Metropolitan areas such as Bangkok, Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, and Samut Sakhon will experience a new daily wage rate of 363 baht, representing a 10 baht increase from the current 353 baht.
Following the committee’s five-hour meeting, Pairoj Chotikasathien, permanent secretary for the Labor Ministry, stated that these proposed wage hikes would be submitted to the cabinet for acknowledgment before official publication in the Royal Gazette. The changes are slated to take effect on January 1.
Mr. Pairoj emphasized that these adjustments aim to align workers’ standards of living with economic conditions, ensuring a balance that suits businesses. Notably, the decision to approve 370 baht for Phuket reflects the unique economic landscape of the province, heavily dependent on tourism and characterized by a higher cost of living.
However, the new rates fall short of the Pheu Thai Party’s election promise earlier this year, where they pledged to raise the minimum wage to 400 baht per day. Labor Minister Phiphat Ratchakitprakarn indicated last month that the wage increase would likely be around 2%, aligning with the current low inflation rates.
The tripartite committee plans another wage increase in 2024, aiming to reach the 400 baht threshold. Minister Phiphat expressed optimism that, if the economy performs well, the daily wage might further rise to 600 baht by 2027.
The adjustments have garnered attention due to initial promises made by the Pheu Thai Party and concerns from businesses regarding potential impacts on operational costs and overall competitiveness. The screening panel’s meticulous consideration, including the involvement of academics, is seen as an effort to strike a balance acceptable to both employers and employees.
