Minimum Wages Rise Again in Thailand

In addition to the raising of the minimum wage in Thailand which has been implemented in January 2024, a second wage increase has gone into effect as of April 2024, though only for workers in certain sectors. While the new wage hike still falls short of the level promised by the Pheu Thai Party in 2023, these adjustments aim to give workers an increased standard of living amidst rising inflation while protecting Thai businesses.

First Wage Increase, Effective January 2024

At the beginning of January 2024, the daily minimum wage was raised by an average of 2.4%, as promised in December 2023. This set the new rates to sit between 330 and 370 THB per day for all workers nationwide. However, due to varying economic situations, the wage increase varied from province to province. Listed in the table below are examples of the different rates of the new minimum wage for ten different provinces across Thailand: 

Employees who are eligible for the wage increase are advised to file complaints to the Labour Ministry if employers fail to adjust their wages to the new rates.

Further Increase in Minimum Wage for Tourism and Hospitality Businesses

On April 13, 2024, the minimum wage was adjusted again, but only for employees at tourism-related businesses and four-star hotels, to 400 THB per day. Furthermore, only some regions of Thailand are subject to this increase.

The conditions are set for businesses with at least 50 staff members in the following provinces and areas:

• Bangkok’s Pathumwan and Watthana districts
• The area under the jurisdiction of tambon Ao Nang administrative organization in Krabi 
• Pattaya City in Chon Buri 
• Chiang Mai’s Nakhon Chiang Mai municipality
• Prachuap Khiri Khan municipality
• Phangnga’s Khuk Khak subdistrict municipality
• Phuket province
• Rayong’s Ban Phe subdistrict
• Songkhla’s Hat Yai municipality
• Surat Thani’s Koh Samui district

The tourism and hospitality sectors are only the first to experience this continued minimum wage hike, as Thailand is gradually working towards raising the minimum wage for all sectors. The administration set an ambitious goal to achieve a 600 THB per day minimum wage for all workers in Thailand by 2027 to raise the standard of living across the nation.

The government is rolling out this process piecemeal instead of all at once to ensure that the economy does not collapse. The current administration says that at least 3 to 4 million workers hired by small and medium-sized enterprises (SMEs) would be at immediate risk of losing their jobs if the change were to be implemented immediately as employer costs would skyrocket.

Category: Administrative Law, Labor Protection