PM promises minimum wage hike within this year

Prime Minister Paetongtarn Shinawatra said today, that the government will press ahead and fulfil its promise to increase the minimum wage to 400 baht a day nationally within this year, but it needs to consider the opinions of all stakeholders and ensure legal compliance.

Earlier, Labour Permanent Secretary Pairoj Chotikasatien hinted that the 400-baht new minimum wage, which was scheduled to become effective from October 1, may have to be postponed, because the tri-partite wage committee is yet to decide on the issue after two meetings of the panel were called off due to the lack of a quorum.

The prime minister explained that the government has not dragged its feet on the increase and remains committed to keeping its promise, adding that the administration wants the new wage rate to come into force as soon as possible.

The private sector has, however, expressed concerns that the wage rise will hurt businesses, SMEs in particular, as it will make Thai exports less competitive, especially when combined with the strengthening of the baht currency against the US dollar and high interest rates.

The confederation of employers has recommended various minimum wages, according to the location and skills of the workers.