Dream of a '400 baht Minimum Wage Nationwide' shattered

MONDAY, DECEMBER 23, 2024

The Tripartite Board approves a minimum wage increase to 400 baht in tourism and EEC areas, covering four provinces and one district: Phuket, Chonburi, Rayong, Chachoengsao, and Samui District. The decision will take effect on January 1, 2025.

The decision came after the Tripartite Board meeting on Monday, December 23, to discuss adjusting the minimum wage per the government’s policy aiming for a nationwide 400-baht rate as a New Year’s gift for workers, all 15 members—five from the government, five from employers, and five from employees—participated. The meeting lasted over five hours.

Boonsong Thapchaiyut, Permanent Secretary of the Ministry of Labour and Chair of the Board, announced after the meeting that the board had resolved to adjust the minimum wage for 2025. The rates will increase by 7–55 baht per day, averaging a 2.9% rise. The adjustments are divided into 17 rates based on cost of living and economic structure, with the highest rate set at 400 baht per day and the lowest at 337 baht per day. These changes will take effect on January 1, 2025.

Key Adjustments:

  • 400 Baht/Day: Applicable in four provinces and one district—Phuket, Chachoengsao, Chonburi, Rayong, and Samui District, Surat Thani.
  • 380 Baht/Day: Applicable in Mueang District, Chiang Mai, and Hat Yai District, Songkhla.
  • 372 Baht/Day: Applicable in Bangkok and six surrounding provinces.
  • Other 67 Provinces: Adjustments made according to minimum wage guidelines.

The adjustment of the minimum wage rate this time is aimed at ensuring that general workers, especially those starting out in their careers, can maintain a reasonable standard of living according to the current cost of living, economic, and social conditions. This adjustment also aligns with the capabilities of local businesses. The wage increase will benefit approximately 3,760,697 workers.

Boonsong stated that for 2025, the Board has decentralized the decision-making process for minimum wage rates to regional levels. A total of 77 provincial sub-committees have been established to propose minimum wage recommendations based on local facts and criteria. These have been divided into three groups:

Group 1: The necessity of workers' cost of living
Group 2: The ability of employers to pay
Group 3: The overall economic and social situation

These groups are considered with the rising cost of living as a key factor, ensuring that workers receive wages sufficient to maintain their livelihood. The decision based on fairness, taking into account the opinions of all parties involved, so that both employers and employees can operate businesses and sustain their livelihoods.

The Ministry of Labour will submit this matter to the Cabinet for final approval on December 24 for to be published in the Royal Gazette and enforced accordingly.