Thailand to Delay Minimum Wage Increase Scheduled for October 1, Official Reports

Thailand Delays Minimum Wage Increase

Thailand has decided to postpone a planned hike in the minimum wage to 400 baht (approximately $12.15) per day, originally set for October 1, by about two weeks. This delay is attributed to the lack of a quorum during recent meetings of the committee responsible for the wage increase, according to a senior official from the Labour Ministry.

The committee, which comprises representatives from the government, employers, and labor unions, has struggled to convene effectively, failing to achieve a quorum in two prior meetings. Labour Ministry permanent secretary Pairoj Chotikasathien stated, "We will move forward as quickly as possible," noting that the new minimum wage would apply only to businesses with more than 200 employees.

This proposed increase from the current minimum wage range of 330 baht to 370 baht per day is part of the ruling Pheu Thai party’s campaign platform, which has also pledged to raise the minimum wage to 600 baht by 2027.

The wage hike is a part of the government’s strategy to stimulate growth in Thailand, which is facing challenges such as high household debt and a slowing manufacturing sector. Additionally, the government is implementing a significant 450 billion baht stimulus program that aims to provide individuals with 10,000 baht each to spend in their local communities. The first phase of this initiative is expected to launch before the end of the month.

The central bank projects that the economy will grow by 2.6% this year, an improvement from the 1.9% growth seen in 2023.