Economy Wage Woes: US Tariffs Freeze Thai Minimum Wage Boost

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The eagerly awaited increase in Thailand's minimum wage to 400 baht has been put on hold, causing disappointment among workers eyeing a pay rise.

 

In a meeting held by the tripartite board on Tuesday, the decision to implement this wage hike was delayed due to concern over the economic impacts of recent US tariff changes. The board has now postponed the next meeting to an unspecified date in May, leaving the wage hike promise in limbo.

 

The meeting, led by Boonsong Thapchaiyuth, the Labour Ministry's permanent secretary, was plagued by reservations from employers' representatives. They voiced out that the economic landscape, especially with the recent US tariffs, makes it an unfavourable time to introduce a wage hike.

 

Despite these setbacks, Boonsong highlighted that the tourism and service sectors might still have the capacity to afford the proposed increase as they are less impacted by the tariff issues.

 

 

 

Employee representatives echoed similar concerns, suggesting the timing for a wage increase is less than ideal. Employers have expressed frustration with the government's lack of relief measures since the initial wage hike in January.

 

Natthakit Khettrakarn, an employers' group spokesperson, pointed out the significant burden on businesses, compounded by the hefty 36% US levy on Thai imports.

 

Labour Minister Phiphat Ratchakitprakarn had indicated earlier that the details of the wage hike would be resolved in an April meeting. However, due to insufficient attendance, the decision has been delayed to April 22, pushing back the potential implementation further.

 

Phiphat expressed worry that a nationwide wage surge might negatively impact around 500,000 small and medium-sized businesses across Thailand.

 

Employers are asking for more clarity and possibly support from the government as they navigate these turbulent economic waters, while workers await the board’s final decision with bated breath.

 

How the government navigates these choppy economic waters could have significant ramifications on both businesses and workers in the coming months.

 

Adapted by ASEAN Now from Bangkok Post

 

-- 2025-04-23

 

 

[ikke1959]

Economic waters will be become very rough. If the people can't buy anything anymore because the prices are rising and the wages are not raised, it will go wrong. Be sure of that.. Stealing, borrowing without pay back, and although not common in Thailand strikes or work refusals will be coming... with the result of lower profits, and bankruptcy of companies.. No not in the coming weeks, of months, but you will see.. It will go terrible wrong... History has showed it many times already.. The greed of the rich will be punished

[WHansen]

Thailands financial crisis is dire, a meltdown may be on the way.

[dinsdale]

So they're blaming the tariffs. Very handy. I've lost count of how many times a rise in the minimum wage has been put on hold.