Thailand Considers 2nd Minimum Wage Hike This Year

[snoop1130]

 

BANGKOK (NNT) - The tripartite wage committee is currently reassessing the factors that determine the daily minimum wage in Thailand, prompted by a government push for an increase - the second one proposed this year. The Employers' Confederation of Thai Trade and Industry (EconThai) highlighted this development amid discussions for a wage adjustment expected to be implemented in May. 

 

The decision follows a modest wage hike of 2.37% implemented at the start of January, which Prime Minister Srettha Thavisin deems insufficient, particularly for workers in the southern regions.

 

Vice-chairman of EconThai, Tanit Sorat, mentioned that the committee, comprising government, employer, and employee representatives, has formed two sub-panels to deliberate on the new wage rate. Factors under consideration include inflation, GDP growth, and labor productivity, with last year's inflation rate reported at 1.23% by the Commerce Ministry and the National Economic and Social Development Council adjusting its GDP forecasts for 2023 and 2024 to 1.9% and 2.7%, respectively.

 

EconThai suggests that while the new minimum wage might not reach 400 baht a day for all workers, certain professions and regions could see this increase. This is in line with the Pheu Thai Party's proposal for a gradual rise to 600 baht by 2027, starting with 400 baht this year. Currently, the highest daily minimum wage is 370 baht in Phuket, with the lowest at 330 baht in Yala, Pattani, and Narathiwat.

 

Tanit predicts that migrant workers will primarily benefit from the proposed wage adjustment to 400 baht a day, as many Thai workers already exceed this threshold. With an influx of 400,000 to 500,000 new graduates expected in March, many are also anticipated to join the freelance workforce.

 

Source: NNT 2024-02-26

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

Get our Daily Newsletter - Click HERE to subscribe

 

[flyingtlger]

8 hours ago, snoop1130 said:

the new minimum wage might not reach 400 baht a day for all workers

400 baht a day is still very, very low compared to most industrialized countries....

[hotchilli]

13 hours ago, snoop1130 said:

The tripartite wage committee is currently reassessing the factors that determine the daily minimum wage in Thailand, prompted by a government push for an increase - the second one proposed this year. The Employers' Confederation of Thai Trade and Industry (EconThai) highlighted this development amid discussions for a wage adjustment expected to be implemented in May. 

If the first one was realistic they wouldn't have to do this.

[hotchilli]

4 hours ago, flyingtlger said:

400 baht a day is still very, very low compared to most industrialized countries....

The only way Thailand stays competitive is with cheap labour... keeping the price of products down

Thai (foreign) industries will fight wage rises to stay profitable.

[jacko45k]

4 hours ago, flyingtlger said:

400 baht a day is still very, very low compared to most industrialized countries....

Do you categorize Thailand in that group now? The services sector still dominates.

 

[patman30]

Minimum wage is not good for any economy.

[Tropicalevo]

So the government wants to stop cheap imports yet he wants business to pay more.

That pushes Thai product prices up.

They cannot compete with cheap imports.

Well done China. Good move.