Thailand sticks to minimum wage hike, despite PM push for more

BANGKOK — Thailand will stick to an agreed plan to raise the average daily minimum wage by 2.37 per cent, effective in January, a senior government official said on Wednesday (Dec 20), despite concerns from the prime minister that it was insufficient.

After a review sought by the government, a wage committee comprised of government, employers and employee representatives agreed to increase the pay threshold range to 330 baht to 370 baht (S$12.56 to S$14.09), said Pairoj Chotikasathien, permanent secretary of labour.

The current minimum wage is 328 to 354 baht, varying between different parts of the country.

"The wage hike is based on current economic data and is considered appropriate with equality, fairness and reliability," he told a press conference.

The wage committee would consider adjusting the way it set wage increases as soon as possible, which is expected to lead to another wage hike in April or May next year, he said.

Prime Minister Srettha Thavisin has said the 2.37 per cent wage hike was too low and wage increases would "not be a disaster" for business owners.

His ruling Pheu Thai party wanted to raise the threshold to 400 baht, among its raft of populist promises to woo the working classes, but faced opposition from businesses worried about pushing up operating costs during a weak economy.

The previous government in October last year had increased the minimum wage by 5.02 per cent.

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