Labour minister vows to raise daily minimum wage by year-end
Labour Minister Phiphat Ratchakitprakarn announced on Thursday (September 28) that the raising of the minimum wage would be a New Year's gift for the labour sector, but could not confirm whether the increase would bring it up to 400 baht per day.
Formal discussions with the tripartite committee, composed of employers, employees, and government representatives, would first be necessary, he said, adding that the decision would be based on inflation rates, minimum wages in each province, varying wages in different industries, and the country's inflation rate. A conclusion was expected by the end of November.
Increasing the minimum daily wage is considered a priority by the government and should come into effect as of January 1. This move is aimed at supporting the sluggish Thai economy, particularly in the face of inflation and a soaring cost of living, putting pressure on both the labour market and employers.
The government emphasised that this increase would not only apply to Thai workers but also to foreign labourers. The government aims to improve the work skills of Thai workers to ensure they receive a minimum wage of at least 400 baht per day, Phiphat told a meeting of the Association of Thai Travel Agents (ATTA) earlier this month where he also highlighted the impact of the Covid-19 pandemic, which led to a 40% decrease in the tourism workforce. Though some workers have returned, there is still a 25% gap compared to pre-pandemic levels.
To boost the tourism industry, the government has temporarily exempted visa requirements for tourists from China and Kazakhstan, allowing stays of up to 30 days from September 25 of this year to February 29, 2024. However, the idea of increasing the number of foreign workers from countries like the Philippines and Indonesia has faced opposition. The government believes it is necessary to focus instead on training the Thai workforce in various tourism-related professions.
Collaboration plans between four ministries - Tourism and Sports, Education, Higher Education, Science, Research and Innovation, and Labour - are now in place and aim to produce skilled labour to meet the demands of employers.
The tourism sector is considered a high-demand market globally, and many countries are experiencing shortages in tourism-related labour. Some Thai workers have chosen to work in tourism abroad, particularly in the Middle East, such as in Dubai, Saudi Arabia, and Sudan, where salaries are higher than in Thailand. Therefore, the Labour Ministry is accelerating efforts to train domestic tourism workers to address the labour imbalance, Phiphat said.
