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File photo courtesy of Bangkok Post

 

In a significant change, Bangkok's daily minimum wage will rise to 400 baht starting July 1, as announced by the national wage committee on Tuesday.

 

This increase extends beyond the city, impacting workers in hotels and entertainment venues across the country, a shift from the previous focus solely on major tourist hotspots. Currently, the capital's wage stands at 372 baht, with provincial rates varying between 337 and 380 baht.

 

The decision emerged from a decisive majority within the committee, following intense debate. Boonsong Thapchaiyut, the committee's chairman and the Ministry of Labour’s permanent secretary, emphasised this new rate for certain businesses, including hotels with over 50 rooms or those rated two-star and above, as well as registered entertainment venues.

 

The emphasis initially targets the tourism and service sectors, which are perceived to withstand the financial adjustments more readily.

 

This proposed wage adjustment is anticipated to positively affect approximately 700,000 workers across the nation, pending cabinet approval.

 

To mitigate economic impacts on businesses, the Ministry of Labour is coordinating with six banks to offer 30 billion baht in soft loans, exploring further support measures as needed.

 

The increase is significant now as the governing Pheu Thai Party, following its 2023 election campaign, aims for a 400-baht national wage, aspiring to 600 baht by 2027, though facing resistance over practical implementation.

 

Boonsong firmly addressed rumours regarding motives to retain Cambodian workers in Thailand amidst border tensions, clarifying that the policy was economically rather than strategically motivated.

 

Even as Cambodia appeals for its citizens' return, the wage policy remains focused on domestic economic balance rather than international labour dynamics.

 

This landmark decision reflects Thailand's complex economic landscape, balancing worker welfare with employer capability, laying foundations for broader economic aspirations despite divided opinions.

 

The debate underscores the intricacies of nationwide policy application within varying local economies.

 

image.png  Adapted by ASEAN Now from Bangkok Post 2025-06-18

 

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