Labour Minister Phiphat Ratchakitprakarn is optimistic that a new nationwide daily minimum wage increase to 400 baht could take effect on October 1, alongside measures to support businesses that may be impacted.
His comments on Wednesday come as uncertainty looms over the forthcoming tripartite wage committee meeting scheduled for Friday, where the proposed nationwide minimum wage of 400 baht will be discussed.
The wage committee, which includes representatives from employees, employers, and the government, held a meeting on Monday to advocate for the 400-baht minimum wage policy. However, five employer representatives were absent, citing prior commitments. A new meeting has been arranged for Friday to revisit the proposal, which would apply to companies or factories with a workforce of at least 200.
Mr. Phiphat stated that regardless of whether the employers’ representatives attend Friday’s meeting, the remaining members will continue the discussion since a two-thirds majority is necessary to adopt the 400-baht wage policy.
“I will do my utmost to see its implementation, and I believe employers are looking forward to the wage increase, even though it will affect them,” he explained. “Coming from the business sector myself, I understand the significant impact it may have on companies—of the approximately 30,000 employees in our group, about 20,000 would be affected. We accept the situation.”
He also expressed hope that the employers’ representatives would participate in the discussion. “A limited wage hike is the optimal choice as it minimizes impacts on businesses, and the Finance Ministry is ready to announce relief measures on October 1,” he added.
Mr. Phiphat mentioned that he is not worried if the wage increase is challenged by concerned parties in the Administrative Court, as he is prepared to face the consequences, believing the policy is being implemented with good intentions.
The business sector has indicated its unpreparedness for a wage increase. Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), urged the state’s representatives to consider feedback from provincial sub-committees regarding the wage increase during his comments on Wednesday.
He emphasized that the national wage committee should take into account economic indicators and the country’s competitiveness while deliberating on the matter. According to Mr. Kriengkrai, discussions with businesses reveal that a wage increase could drive already vulnerable operations to shut down and diminish confidence, suggesting a “pay by skill” approach and calling for efforts to enhance workers’ skills to align with market demand.
“Many industries are not labor-intensive and are willing to pay between 700 to 900 baht for skilled workers, but those workers are difficult to find. We need to engage in dialogue and refine the policy to prevent unnecessary debates,” he commented.
In defending the employers’ representatives who were absent from Monday’s meeting, he explained that the gathering on September 16 was called on short notice. Those representatives had prior engagements and were unavailable, he clarified, denying any rumors that employers intended to miss the meeting.
Raising the daily minimum wage is a significant election pledge of the Pheu Thai-led government, which aims to implement the 400 baht minimum wage within its first year in office, with a target of reaching 600 baht by 2027.
The tripartite committee had approved the 400-baht daily wage on March 26, which came into effect in parts of ten provinces on April 13, including Phuket, Koh Samui in Surat Thani, Pattaya in Chon Buri, Chiang Mai City in Chiang Mai, and certain districts in Bangkok, specifically Pathumwan and Watthana. This increase was applicable to tourism-related businesses and four-star hotels with at least 50 employees.
