Thai business sector protests against 400-baht minimum wage plan

Thailand’s three major business agencies will submit their formal protest to the government on Friday, opposing the plan to increase the daily minimum wage for unskilled workers to 400 baht nationwide.

The decision was reached on Wednesday by representatives of the Thai Chamber of Commerce (TCC), the Federation of Thai Industries and the Thai Banker Association, who are part of the Joint Standing Committee on Commerce, Industry and Banking.

After the meeting, TCC chairman Sanan Angubolkul, who also chaired the meeting, said the committee resolved to submit an open letter to all relevant government agencies to oppose the government’s plan to enforce the 400 baht rate across the country.

The Pheu Thai-led government has announced that it will raise the daily minimum wage to 400 baht nationwide by January 1. However, the tripartite wage committee has not yet resolved to adopt the same minimum wage rate of 400 baht. The panel comprises representatives of employers, employees and the Labour Ministry.

Initially, the wage committee set different wage rates for various provinces, based mainly on the cost of living in those areas. During the short-lived Srettha Thavisin government, the wage committee adopted rates based on business types and business zones in the provinces. Later, Prime Minister Paetongtarn Shinawatra’s government announced in September that it would implement the same 400-baht rate nationwide.

Sanan said the committee resolved to ask the government to review its decision, despite the announcement of its policy. He argued that the 400-baht rate would hinder economic recovery, which is still ongoing and not fully achieved.

The joint committee also stated that the prime minister does not have the authority to set the daily minimum wage, as it should be decided by the tripartite wage panel based on suitability.