The Finance Ministry is preparing to implement measures to alleviate the impact on businesses dealing with a rise in the minimum wage, as stated by Deputy Finance Minister Julapun Amornvivat.
Julapun emphasized the necessity of accompanying a minimum wage increase with tax initiatives to support businesses, highlighting the government’s aim to address social inequality and fortify the societal foundation for sustainable economic advancement.
Recognizing the challenges faced by the private sector due to minimum wage adjustments, Julapun affirmed the government’s commitment to devising strategies to cushion these effects.
In 2018, a wage hike was enforced following decisions from the 19th Wage Committee Meeting, resulting in an average increase of 15.97 baht across various wage tiers.
Different regions had differing minimum wage levels, ranging from 308 to 330 baht per day. The southernmost border provinces had the lowest wage at 308 baht, while areas like Phuket, Chon Buri, and Rayong had the highest at 330 baht. The wage in Bangkok and surrounding regions was set at 325 baht per day.
To alleviate the impact of the 2018 minimum wage hike, tax measures were introduced by the Prayut Chan-o-cha administration. Companies or legal partnerships meeting specific criteria were permitted to deduct daily wage expenses based on a formula.
The Pheu Thai Party, part of the coalition government, aims to gradually increase the minimum wage to 600 baht per day by 2027, with a target of reaching 400 baht per day by October 1 of the current year through incremental adjustments.
