Labour Minister Phiphat Ratchakitprakarn remains determined to raise the minimum wage to 400 baht across Thailand, despite concerns about its potential impact on small and medium-sized enterprises (SMEs) and inflation.
A tripartite wage committee is set to review the proposal on Wednesday, following multiple delays to the nationwide wage increase.
On Monday, Minister Phiphat addressed questions raised by Senator Tewarit Maneechai regarding challenges surrounding the wage hike. This discussion followed the postponement of wage adjustments for all provinces on three separate occasions.
Phiphat reaffirmed his commitment to pushing for the wage increase, drawing from the 2012 wage adjustment model, which was implemented in seven provinces, especially in the Bangkok Metropolitan area. However, the wage committee, along with subcommittees from 76 provinces, determined that only four provinces—Phuket, Chachoengsao, Chon Buri, and Rayong—and Samui district in Surat Thani, could implement the 400-baht minimum wage, starting January 1 of this year.
The minister acknowledged the wage inequality that exists and emphasized his responsibility in addressing the issue. He also recognized the concerns that the wage increase could have a significant adverse effect on SMEs, potentially leading to broader economic challenges. As a result, he stressed the importance of carefully considering the issue.
The tripartite wage committee is scheduled to meet tomorrow, just one day before its current term expires, to discuss the proposal. While the committee’s term will end soon, it will continue to function until a new one is formed.
“I remain hopeful. I cannot force anyone, but I urge the committee to consider using pilot provinces as examples, applying the 400-baht wage to specific sectors that have seen economic growth,” Phiphat said.
If the wage increase is not approved during the initial meeting, a second meeting can be scheduled within 15 days.
In an effort to ease the potential economic strain caused by the wage hike, the minister mentioned possible mitigation measures, including tax deductions for businesses and reductions in employer contributions to the Social Security Fund (SSF).
The Labour Ministry had previously announced 129 occupations eligible for the new minimum wage of 400 baht, leaving just 13 other occupations still earning below this threshold.
