Labour Minister Phiphat Ratchakitprakarn is determined to implement a nationwide minimum wage of 400 baht, despite concerns about its impact on SMEs and inflation. The tripartite wage committee, which includes government, employer, and employee representatives, is set to deliberate on the proposal following previous postponements.
Drawing from the 2012 wage adjustment model, Mr. Phiphat aims to reduce wage disparities. However, after assessments by provincial wage committees, only four provinces—Phuket, Chachoengsao, Chon Buri, and Rayong—along with Surat Thani’s Samui district, were deemed ready for implementation as of January 1.
Acknowledging the financial strain on businesses, the minister has proposed support measures, including tax deductions and reductions in Social Security Fund contributions for employers. He has also encouraged the committee to consider a phased approach, starting with specific occupations that have seen economic growth.
If the wage increase is not approved in the initial meeting, a second meeting can be convened within 15 days. With 129 occupations already eligible for the new wage, the decision will significantly impact Thailand’s labour market, balancing economic stability with worker welfare.
Thailand’s Proposed Minimum Wage Increase to 400 Baht_Bangkok Global Law