Thailand to hike daily minimum wage amid rising cost of living
The Thai government is close to approving a potentially sharp rise in the daily minimum wage from a rate between 313 baht ($9.37) and 336 baht ($10.06), depending on the region, to a flat rate of up to 492 baht ($15.04), local news outlet The Nation referred to people with knowledge of the matter.
The 492-baht rate was proposed and approved in principle by two agencies representing workers in the country’s Tripartite Wage Committee, the report noted, adding that the sources said the labour ministry had already agreed to increase the daily minimum wage.
However, it has not yet decided whether to approve an increase to as much as 492 baht as proposed by the committee. The ministry promised to reach its decision “as soon as possible.”
The wage committee comprises the labour ministry, which represents the government, the Thai Labour Solidarity Committee and the State Enterprises Workers’ Relations Confederation, which both represent workers, and the Employers’ Confederation of Thailand, representing employers.
Pandemic lockdowns, job losses caused economic hardships for labourers
A potential rise would come just two years after the previous raise from between 308 baht and 330 baht as rising living costs and unemployment during Covid-19 pandemic lockdowns has put significant burden on labourers, particularly as consumer goods, food and fuel, among other items, became more expensive.
Much of the expected decision now depends on the findings of a feasibility study by the labour ministry on the macroeconomic impact of an increased minimum daily wage as it would inevitably lead to another jump in prices of general goods and services, affecting all consumers including salaried citizens through inflation, experts said.
General expenses are categorised as daily costs for three meals and travel fees, while monthly expenses include rent, utility bills, instalment payments for vehicles and costs to support families and parents.
A flat minimum wage has not been approved in Thailand before, the report said.
If the 492-baht rate gets approved, it would lead to a monthly wage of around 11,800 baht ($361) for a six-day working week, the highest minimum wage in Southeast Asia ex Singapore and Brunei.
Critics of a sharp raise have warned that it would inevitably lead to an influx of migrant workers from low-paying neighbouring countries such as Myanmar, Laos and Cambodia – who are legally entitled to the same wage as Thai nationals doing the same job – and also have a negative effect on foreign direct investment in labour-intensive industries.
[caption id="attachment_38218" align="alignleft" width="300"] Factory workers in Thailand can expect a pay rise Picture: International Organisation for Migration (IOM)[/caption] The Thai government is close to approving a potentially sharp rise in the daily minimum wage from a rate between 313 baht ($9.37) and 336 baht ($10.06), depending on the region, to a flat rate of up to 492 baht ($15.04), local news outlet The Nation referred to people with knowledge of the matter. The 492-baht rate was proposed and approved in principle by two agencies representing workers in the country’s Tripartite Wage Committee, the report noted, adding that the sources...
The Thai government is close to approving a potentially sharp rise in the daily minimum wage from a rate between 313 baht ($9.37) and 336 baht ($10.06), depending on the region, to a flat rate of up to 492 baht ($15.04), local news outlet The Nation referred to people with knowledge of the matter.
The 492-baht rate was proposed and approved in principle by two agencies representing workers in the country’s Tripartite Wage Committee, the report noted, adding that the sources said the labour ministry had already agreed to increase the daily minimum wage.
However, it has not yet decided whether to approve an increase to as much as 492 baht as proposed by the committee. The ministry promised to reach its decision “as soon as possible.”
The wage committee comprises the labour ministry, which represents the government, the Thai Labour Solidarity Committee and the State Enterprises Workers’ Relations Confederation, which both represent workers, and the Employers’ Confederation of Thailand, representing employers.
Pandemic lockdowns, job losses caused economic hardships for labourers
A potential rise would come just two years after the previous raise from between 308 baht and 330 baht as rising living costs and unemployment during Covid-19 pandemic lockdowns has put significant burden on labourers, particularly as consumer goods, food and fuel, among other items, became more expensive.
Much of the expected decision now depends on the findings of a feasibility study by the labour ministry on the macroeconomic impact of an increased minimum daily wage as it would inevitably lead to another jump in prices of general goods and services, affecting all consumers including salaried citizens through inflation, experts said.
General expenses are categorised as daily costs for three meals and travel fees, while monthly expenses include rent, utility bills, instalment payments for vehicles and costs to support families and parents.
A flat minimum wage has not been approved in Thailand before, the report said.
If the 492-baht rate gets approved, it would lead to a monthly wage of around 11,800 baht ($361) for a six-day working week, the highest minimum wage in Southeast Asia ex Singapore and Brunei.
Critics of a sharp raise have warned that it would inevitably lead to an influx of migrant workers from low-paying neighbouring countries such as Myanmar, Laos and Cambodia – who are legally entitled to the same wage as Thai nationals doing the same job – and also have a negative effect on foreign direct investment in labour-intensive industries.
