Thailand to raise minimum wage by 2.37% from Jan 1
THAILAND will raise the average daily minimum wage by 2.37 per cent effective Jan 1 next year, a senior official said on Friday (Dec 8), short of the level promised by the ruling party in its election campaign.
A committee of government representatives, private companies and labour groups on Friday agreed to raise the threshold to between 330 baht and 370 baht (S$12.51 to S$14.03) per day, up from 328-354 baht at present. The level varies between different parts of the country.
“This adjustment will allow workers to achieve a standard of living that is based on economic conditions and suitable for businesses,” Pairoj Chotikasathien, Permanent Secretary of Labour, told a press conference.
The populist Pheu Thai party had pledged to raise the wage to 400 baht per day in what was a key plank of its election manifesto. The previous government in October last year had increased the minimum wage by 5.02 per cent.
Pheu Thai’s plan for a big hike had rattled businesses over concerns it would push up operating costs and make Thailand less competitive for investors at a time when the economy is underperforming the region.
South-east Asia’s second-largest economy grew a slower-than expected 1.5 per cent in the third quarter from a year earlier, the slowest pace this year, on weak exports and government spending.
Prime Minister Srettha Thavisin, a real estate tycoon and political newcomer, is on a drive to attract investors and has said the economy is in “crisis”.
He has been stressing the need to follow through with stimulus plans, including his controversial US$14 billion digital handout policy, to be implemented next year.
Pairoj said there would be another wage increase in 2024 where they would seek to raise the level to 400 baht. REUTERS
Share with us your feedback on BT's products and services
