Labour Minister Phiphat Ratchakitprakarn has confirmed that Thailand’s daily minimum wage will be raised to 400 baht nationwide by May 1, alongside support measures for small and medium enterprises (SMEs). The announcement follows criticism in parliament over the government’s delay in fully implementing the wage hike, which was a key election promise by the Pheu Thai Party in 2023.
During a censure debate, Sirikanya Tansakul, an MP from the People’s Party, accused the government of failing to deliver on its pledge, calling the unfulfilled promise a political maneuver. She highlighted an 11% rise in business closures since the start of the Paetongtarn administration, compared to a 4% increase in new business registrations. She also noted that many workers have been laid off with minimal compensation.
In response, Phiphat stated on Wednesday that the national wage committee would meet before the Songkran festival to finalize the adjustment. Currently, the 400-baht minimum wage applies only in Phuket, Chon Buri, Rayong, Chachoengsao, and Koh Samui, while other provinces have rates ranging from 337 to 380 baht. Employers have expressed concerns about a uniform nationwide wage, arguing that regional economic conditions vary significantly.
The wage increase is expected to impact approximately 5.8 million workers and 500,000 SME employers. Phiphat acknowledged that some businesses may struggle with the higher costs, and the government is exploring measures to mitigate the financial burden. He also emphasized that the wage policy would be aligned with the country’s 3% economic growth target, meaning adjustments could vary across sectors to minimize economic disruption.
The decision will be discussed further in upcoming meetings. The policy shift has drawn attention from business leaders, policymakers, and labor groups, with officials closely monitoring its potential economic impact.
