Phiphat confident THB400 minimum wage will start from Jan 1

Labour Minister Phiphat Ratchakitprakan on Wednesday expressed confidence that the meeting of the Tripartite National Wage Committee on Thursday (December 12) would approve the government’s proposal to raise the minimum wage to 400 baht per day.

“I believe everything will go well, and the board’s decision will be forwarded to the Cabinet meeting on December 23 for final approval, allowing the measure to be implemented in time for the New Year,” he said.

The committee, chaired by the Labour Ministry permanent secretary, has 15 members, with three five-member teams representing the government, employers and employees respectively.

“I insist that Thais will enjoy a 400-baht minimum wage as a New Year gift, as I have already discussed [the timeline] with the permanent secretary,” said Phiphat.

As for the concern of business operators that raising the minimum wages would increase costs, Phiphat said his ministry has suggested to the committee measures to minimise the impact on the economy and address emerging problems, such as increase in product prices and migration of businesses to countries with cheaper labour.

“Industry that could be affected the most is automotive manufacturing, as the wage hike could affect several parts manufacturers,” said Phiphat. “We are exploring the most suitable solution for this issue, including measures that have been implemented in 2012 to address a similar problem.”

The labour minister added that his ministry has also prepared other measures as “New Year gifts” for Thai people, which will be announced after they are approved by the Cabinet next week.