Labour Minister Affirms Commitment to New Minimum Wage Amidst Committee Delays
PUBLISHED: 26 September 2024
Labour Minister Phiphat Ratchakitprakarn has confirmed that the new daily minimum wage of 400 baht is slated to take effect on October 1, despite the national wage committee’s inability to approve it as of yet.
During a recent House session, opposition MP Sia Champhathong questioned the minister regarding the recent postponements of two committee meetings, suggesting that these delays were a tactic to sidestep the wage issue.
Minister Phiphat clarified that the committee’s proceedings are beyond his authority, emphasizing its independence with 15 members representing employers, employees, and the government.
“I cannot participate in the meetings or influence their decisions,” he stated, indicating that had the September 20 meeting occurred, it is likely that all five employer representatives would have opposed the wage increase.
Employers have largely expressed resistance to the proposed minimum wage, particularly against its uniform implementation nationwide. Currently, minimum wages range from 330 to 370 baht, depending on the province.
The minister noted that efforts are underway to convince the Bank of Thailand to lower interest rates, allowing businesses to better manage operational costs and facilitate increased employee pay.
The new wage is expected to apply to companies with a workforce of at least 200. Studies indicate that this change will result in an additional cost of approximately 73 baht per employee daily for employers.
Phiphat acknowledged the potential substantial impact of this adjustment, especially concerning the worries over small and medium enterprises potentially being overlooked. He reassured that his ministry plans to expand minimum wages for smaller employers based on assessments from provincial wage committees in the future.
Furthermore, the minister affirmed the government’s ongoing commitment to raise the minimum wage to 600 baht by 2027, a promise made during the 2023 election campaign.
He emphasized that achieving the 400-baht baseline by October must be the priority before any future plans are communicated, adding, “The wage increase should align with the country’s economic conditions rather than a rigid schedule,” indicating uncertainty about reaching the envisioned 600-baht goal.
“Our focus remains on implementing sustainable strategies to increase wages while ensuring financial resilience for workers,” he concluded.
