Cabinet delays decision on minimum daily wage increase, rate to be re-evaluated

TUESDAY, DECEMBER 12, 2023

Though Labour Minister Phiphat Ratchakitprakarn presented the new minimum daily wage rates to the Cabinet on Tuesday, he admitted that they need to be reconsidered and revised.

The rates were set by a tripartite committee comprising representatives of employers, employees and the government sector. The committee resolved on Friday to increase the daily minimum wage nationwide within the range of 330 to 370 baht based on provinces from January 1 onwards.

However, in real terms, the raise will actually range between 2 and 16 baht or an average of 2.4%.

Prime Minister Srettha Thavisin, who also holds the Finance portfolio, responded to the new rate structure with dissatisfaction, saying it was “too small”.

When asked on Tuesday if the rates should be higher, the premier said: “The suggestion has already been made. Now it depends on the committee.”

The premier said he would respect the committee’s decision, adding that he expects the new rates to be presented to the Cabinet by December 25 for a potential New Year announcement.

Phiphat, meanwhile, told reporters that he did not agree with the way the new wage rate was calculated and would advise the committee to rework it. The calculation is believed to be based on data from 2020.