Thailand’s minimum wage has risen by an average of just 1.7% per year over the past decade, with limited improvement in real incomes as rising living costs offset gains, according to analysis by Bnomics, the research unit of Bangkok Bank. While nominal wages have increased, higher expenses for food, transport and housing have eroded purchasing power. As a result, many workers have seen little to no meaningful improvement in their quality of life.
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The nationwide minimum wage was set at 300 baht per day in 2012 and remained unchanged for several years, providing a baseline income guarantee. Over time, gradual increases in everyday costs reduced the real value of that wage level. Although adjustments have been made, they have largely allowed workers to keep pace with inflation rather than achieve financial progress.
The study highlights that minimum wages have effectively been “chasing” lost purchasing power, with increases often compensating for earlier cost rises. This has left many workers feeling no better off despite higher headline wages. Instead, they have largely maintained existing living standards without significant advancement.
The Covid-19 pandemic further exposed structural weaknesses in Thailand’s wage system, as living costs surged while wage growth lagged behind. Many households were forced to rely on borrowing, contributing to rising household debt and increased financial vulnerability. The findings point to a broader issue of slow income growth combined with limited opportunities for upward mobility.
Nominal income growth averaged 1.7% annually over the decade, while real income growth remained below 1%. This has created a widespread condition where workers are able to get by but struggle to move forward economically. Minimum wage policy has therefore functioned more as short-term support rather than a driver of long-term stability.
Bnomics suggests that future wage adjustments should better reflect actual living costs and consider regional differences to ensure improvements in purchasing power. It also emphasises the need to link wage policy with broader measures to boost productivity, expand economic opportunities and strengthen local economies. Without such integration, wage increases risk maintaining the status quo rather than delivering meaningful change.
The Nation reported that policymakers face the challenge of designing wage policies that go beyond nominal increases to address structural issues. The analysis underscores that raising wage figures alone will not resolve financial pressures faced by workers. A more comprehensive approach will be required to achieve sustainable economic progress.
Picture courtesy of The Nation
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Adapted by ASEAN Now Nation 2 May 2026