20-12-2023 (BANGKOK) Despite reservations expressed by Prime Minister Srettha Thavisin, Thailand is set to implement a planned 2.37% increase in the average daily minimum wage starting in January, as confirmed by a senior government official on Wednesday (Dec 20).
Following a review initiated by the government, a wage committee, comprising representatives from the government, employers, and employees, reached an agreement to raise the pay threshold range to 330 to 370 baht (S$12.56 to S$14.09), stated Pairoj Chotikasathien, the permanent secretary of labour.
The current minimum wage varies between 328 to 354 baht in different parts of the country.
Pairoj Chotikasathien, during a press conference, stated, “The wage hike is based on current economic data and is considered appropriate with equality, fairness, and reliability.”
He further added that the wage committee would explore adjustments to the method of determining wage increases, anticipating another review leading to a potential hike in April or May next year.
Prime Minister Srettha Thavisin voiced concerns that the 2.37% wage increase was too low, emphasizing that such increases would not pose a significant challenge for business owners. The ruling Pheu Thai party had aimed to raise the threshold to 400 baht, part of its populist promises to appeal to the working classes. However, this faced resistance from businesses worried about escalating operating costs in a weakened economy.
The previous government had implemented a 5.02% increase in the minimum wage in October of the preceding year.
