Thailand maintains modest minimum wage hike

Thailand will move forward with its plan to raise the average daily minimum wage by 2.37% starting January 2024, a senior government official has confirmed. This decision follows a comprehensive review initiated by the government, where a wage committee, consisting of representatives from the government, employers, and employees, reached a consensus on the pay threshold adjustment.

Pairoj Chotikasathien, the Permanent Secretary of Labour, disclosed that the revised pay range would be between 330 baht to 370 baht (US$9.45 to US$10.59). Currently, the minimum wage stands at 328 baht to 354 baht (US$9.39 to US$10.13), varying across different regions of the country.

Chotikasathien emphasised that the wage increase is grounded in current economic data and is deemed “appropriate with equality, fairness and reliability.”

Despite concerns voiced by Prime Minister Srettha Thavisin, who deemed the 2.37% hike insufficient, the wage committee is committed to its decision. Thavisin has advocated for a higher threshold of 400 baht (US$11.45). However, this proposal faced opposition from organisations wary of escalating operating costs during a period of economic fragility.

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Chotikasathien also mentioned that the wage committee is open to considering adjustments in the method used to determine wage increases. This evaluation is anticipated to result in another potential wage hike in April or May 2024, reported Reuters.