Thailand considers 2nd minimum wage hike this year
The Employers’ Confederation of Thai Trade and Industry (EconThai) highlighted the development amid discussions for a wage adjustment expected to be implemented in May.

The tripartite wage committee is currently reassessing the factors that determine the daily minimum wage in Thailand, prompted by a government push for an increase – the second one proposed this year. The Employers’ Confederation of Thai Trade and Industry (EconThai) highlighted this development amid discussions for a wage adjustment expected to be implemented in May.



The decision follows a modest wage hike of 2.37% implemented at the start of January, which Prime Minister Srettha Thavisin deems insufficient, particularly for workers in the southern regions.

Vice-chairman of EconThai, Tanit Sorat, mentioned that the committee, comprising government, employer, and employee representatives, has formed two sub-panels to deliberate on the new wage rate. Factors under consideration include inflation, GDP growth, and labor productivity, with last year’s inflation rate reported at 1.23% by the Commerce Ministry and the National Economic and Social Development Council adjusting its GDP forecasts for 2023 and 2024 to 1.9% and 2.7%, respectively.



EconThai suggests that while the new minimum wage might not reach 400 baht a day for all workers, certain professions and regions could see this increase. This is in line with the Pheu Thai Party’s proposal for a gradual rise to 600 baht by 2027, starting with 400 baht this year. Currently, the highest daily minimum wage is 370 baht in Phuket, with the lowest at 330 baht in Yala, Pattani, and Narathiwat.

Tanit predicts that migrant workers will primarily benefit from the proposed wage adjustment to 400 baht a day, as many Thai workers already exceed this threshold. With an influx of 400,000 to 500,000 new graduates expected in March, many are also anticipated to join the freelance workforce. (NNT)













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Author: Pattaya Mail