Thailand Government Seeking to Raise Minimum Wage

Thailand will review a proposal to raise the daily minimum wage by 2.37% but will seek a bigger increase, Thailand's labor minister said on Dec 12 after the wage board decided to offer lower prices than the government's target. His comments came after Prime Minister Sreta Taibshin announced the increase had been agreed last week with government officials, who are limited to labor and labor groups.

"I don't agree with the wage hike plan and want it to be reconsidered," Labour Minister Phipat Ratchakitprakarn told reporters, adding he would re-propose a different hike to cabinet later this month.

A wage committee, including businesses and labor groups, agreed to raise the threshold to between 330 baht and 370 baht ($9.33 to $10.46) per day, up from 328-354 baht at present. The level varies between different parts of the country. A previous government last October raised the minimum wage by 5.02 percent.

Phu Thai's ruling party ordered the main promise, raising the minimum wage to 400 baht (per day). Companies have pointed to rising prices and costs as factors that make it difficult to compete in slow economic growth.

The East Asian country's second-largest economy grew more slowly than expected in the third quarter, at an annualized 1.5%, due to a slowdown in exports and government spending. The Federation of Thai Industries expressed concern on Dec. 12 that the modest price increase will hit businesses, which are burdened by costs and rising interest rates amid global uncertainty.