Thailand has decided to postpone the planned raise of the minimum wage to 400 baht ($12.15) per day, initially set for October 1, by approximately two weeks due to challenges in achieving a quorum during committee meetings dedicated to the wage hike, according to a senior labor official on Monday.
The committee, comprising representatives from employers, labor unions, and the government, faced difficulties in reaching a quorum during their two previous meetings discussing the proposed increment, disclosed Labour Ministry permanent secretary, Pairoj Chotikasathien.
Chotikasathien affirmed that efforts would be made to progress swiftly, noting that the upgraded minimum wage would specifically apply to businesses with staff exceeding 200 individuals.
The adjustment from the current 330-370 baht per day range was a key component of the ruling Pheu Thai party’s election campaign, with future plans to elevate it further to 600 baht by 2027.
The intended wage surge forms part of the government’s strategy to stimulate growth in Thailand’s economy, which has been hampered by escalated household debt levels and a sluggish manufacturing sector.
Among the government’s initiatives is a 450 billion baht stimulus program, wherein individuals will receive 10,000 baht each to inject funds into local communities, with the initial phase scheduled to kick off before the month concludes.
The Bank of Thailand anticipates the economy to expand by 2.6% this year, an increase from the 1.9% growth recorded in 2023.
