Minimum Wage Surge Proposal In Thailand Draws Criticism


Under the ruling of Pheu Thai party’s, they pledge to raise the minimum daily pay to THB 600 (USD $16.16) by 2027. The Prime Minister Srettha Thavisin has suggested THB400 (USD $10.77) as a suitable amount for the minimum wage.

Meanwhile, the current minimum daily wage varies by province, with THB 337 (USD $9.08) acting as the national average. It ranges from THB 328 (USD $8.83) to THB 354 (USD $9.53). The most recent wage raise, which was 5.02% on average and came after more than two years of a salary freeze, was in October 2022.

According to Associate Professor Yongyuth Chalamwong, a labour economist and development researcher at the Thailand Development Research Institute (TDRI), a minimum wage of THB 400 would entail a salary increase of 13–18% and would be impossible to execute nationwide.

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Chalamwong said to Bangkok Post that the suggested minimum wage can only be implemented in economically prosperous provinces like Chon Buri, Chachoengsao, and Rayong, as well as well-liked tourism hotspots like Phuket.

“When it comes to the salary hike, politicians might have to swallow their pride. In addition to urging firms to establish pay structures that encourage staff to develop their abilities in order to satisfy the requirements for a hike, Chalamwong stated that the wage increase will be incremental rather than a single step increase throughout the nation.

Suchart Chantaranakaracha, Vice-Chairman of the Federation of Thai Industries (FTI), echoed the sentiments expressed by Chalamwong. He urged the government to enact measures to help lower the cost of living and lessen the effects on both employers and their employees.

Thaniwan Koonmongkon, President of the Thai Restaurant Association, warned that a mandated pay boost may cause some firms to reduce perks or working hours to the detriment of employees. According to him, businesses that depend heavily on workers will be most affected by a THB 400 minimum wage. Instead, she argued, the government had to establish a fair rate to make sure that companies may boost pay to keep workers.

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