Nationwide 400-baht minimum wage by Jan 1 ‘unlikely’: Labour Minister

Phiphat, who was speaking after a meeting with the parliamentary subcommittee on labour affairs chaired by senator Pol General Adul Saengsingkaew, said the Labour Ministry must consider several factors, including the inflation rate, if it is to keep the promise of raising the minimum wage by January 1 as a New Year's gift for workers nationwide.

“It is unlikely that the minimum wage in all provinces will simultaneously be raised to 400 baht per day, as currently, the lowest rate is 328 baht and the highest is 354 baht and varies from province to province,” he said. “The increase should be implemented at different rates by provinces. The ministry is planning to discuss this approach with the tripartite committee first.”

The committee comprises representatives of employers, employees and the government sector.

Pipat went on to say that the raising of the minimum wage would be based on the skills of workers and would prioritise Thai nationals. He expected the meeting of the tripartite committee, scheduled for November, would finalise the rate at which minimum wage will be raised in each industry and each province.

“Raising the daily minimum wage must be done carefully, as it has both pros and cons,” he said. “Small and medium enterprises, which currently employ up to 17 million workers, will be the most affected. If they are unable to meet an increased payroll, some 8-9 million people are at risk of losing their jobs,” Phiphat warned.

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.