Chambers, trade groups jointly oppose 400 baht minimum wage

A total of 76 chambers of commerce and 54 trade associations have joined in opposition to government’s plan.

The Chamber of Commerce and Board of Trade of Thailand, along with private-sector members, say they understand the government's policy of adjusting wages to improve the quality of life for Thai workers. However, they oppose the plan for a nationwide minimum-wage adjustment to 400 baht, effective from October 1, 2024.

Nevertheless, they said the private sector continues to support the government in considering an annual minimum-wage adjustment, as stipulated by the law that says the Provincial Minimum Wage Committee and the National Wage Committee must study and consider information regarding prevailing wage rates, taking into account realities such as the cost of living, inflation rates, production costs, prices of goods and services, labour productivity, national GDP, economic and social conditions, and business capabilities.

"The government's decision to uniformly increase the minimum wage to 400 baht nationwide, which surpasses the economic and social realities, will inevitably impact the economy and the country's competitiveness,” said Poj Aramwattananont, vice-chairman of the Chamber of Commerce and Board of Trade of Thailand.

"It must be acknowledged that each province and each type of business has varying levels of readiness in terms of economic and social conditions. Excessively raising the minimum wage beyond reality will impact production costs, transportation costs, service costs, and hiring costs throughout the supply chain," Poj said.

Adjusting the minimum wage without considering the regulations could lead businesses and entrepreneurs to cease operations, downsize, or move their businesses out of the tax system, ultimately resulting in layoffs and termination of employment to reduce costs and stay afloat.

The chambers of commerce nationwide and labour-intensive trade associations have proposed the government's minimum wage adjustment policy as follows:

The annual adjustment of the minimum wage should adhere to the regulations stipulated in the Labour Protection Act of 1998. Meanwhile, increasing employee income levels can be achieved by setting wages based on skill standards, as already prescribed by law.

“We disagree with the nationwide increase of the minimum wage to 400 baht without considering the findings of studies and feedback from the provincial minimum wage committees and the National Wage Committee,” Poj said. “Furthermore, since the government has already adjusted the minimum wage twice in 2024, there should not be a third annual adjustment.

“The minimum wage rate serves as the wage for unskilled labour entering the workforce, but wage adjustments should consider the skill levels of workers. Adjusting the minimum wage should be specific to each province and type of business, involving consultation and examination of the readiness of each area and business type."

Poj went on: "If the government insists on implementing a nationwide minimum wage increase to 400 baht per day without considering the appropriate processes and criteria, aligned with internationally accepted guidelines from the International Labour Organisation, that there is justice to those involved, that could lead to sustained minimum-wage adjustments, potentially causing future problems.

“Private-sector entities, which are impacted by the uniform 400-baht minimum wage policy, must preserve their rights under the rule of law to instil confidence among stakeholders affected by such wage adjustments.”