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Labour Minister Listens to All Parties and Discussions with the FTI, Chamber of Commerce, SMEs, and Businesses on Increasing the 400 Baht Minimum Wage

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          On May 13, 2024, the Labour Minister, Mr. Phiphat Ratchakitprakarn, received a letter from a worker group led by the President of the State Enterprises Workers’ Relations Confederation (SERC), Mr. Sawit Kaewwan, and Leader, Mr. Manop Kuerat, who brought over 150 members to submit a letter to the Labour Minister and carried out activities to show their stance and support for the equalization of the minimum wage nationwide, as announced by the Labour Minister. The Permanent Secretary of Labour, Mr. Pairoj Chotikasathien, and the Ministry of Labour’s senior executives participated in the occasion in the area below the Ministry of Labour’s building. The worker group brought consumer goods that workers use in their daily lives and posted signs to show that, currently, the cost of living has increased throughout the country. Therefore, wages must be adjusted at the same rate nationwide. They encouraged Mr. Phiphat to adjust the minimum wage to 400 Baht equally throughout the country.

          Mr. Phiphat confirmed his intention to adjust wages to 400 Baht equally nationwide, but it must be understood that doing so requires effort and unity in moving forward. The Labour Minister, the Permanent Secretary of Labour, and civil servants will advocate for the workers. The Prime Minister has asked the Ministry of Labour to consider wages, which has been discussed, and thinks it is time to adjust the salary to 400 Baht as a first step. The Ministry of Commerce must help prevent product prices from rising when wages are adjusted. The Ministry of Labour will consult with the Federation of Thai Industries, the Chamber of Commerce, and SMEs to find ways to help in various areas such as taxes, upskilling, and reskilling for employee groups. He affirmed that it would be done as quickly as possible, as assigned.

          From there, the Labour Minister, Mr. Phiphat Ratchakitprakarn, chaired a meeting to discuss the impact of the minimum wage increase, together with the Federation of Thai Industries, the Thai Chamber of Commerce, and the Thai SME Association. The Permanent Secretary of Labour, Mr. Pairoj Chotikasathien, the Department of Skill Development’s Director-General, Ms. Bubpha Rueangsud, and the Ministry of Labour’s executives joined the discussion at the Prasong Rananant conference room, 5th floor, Ministry of Labour. The said meeting was attended by over 40 people from the Federation of Thai Industries, the Thai Chamber of Commerce, and the Thai SME Association. The objective was to listen to the impact of adjusting the minimum wage rate to 400 Baht per day and to the need for assistance from affected entrepreneurs. This will be taken as a support measure, presented at the Wage Committee meeting, and then proposed to the Cabinet.

          Mr. Phiphat said that today was an opportunity to invite all parties to discuss the matter. He would take all points discussed today from the Federation of Thai Industries, the Chamber of Commerce, SMEs, and various associations to determine appropriate guidelines for finding a balance in adjusting wages. He said that he would discuss the matter with the Prime Minister, who has set a policy that in 2024, a minimum wage of 400 Baht would be set throughout the country. Whatever can be done will be done. Issues that remain a challenge will be discussed with relevant parties to find the best solution. Especially when wages increase and the support entrepreneurs will need from the government. Therefore, he said that he would like businesses to help present the support needed, for example, in order to get to a certain place, what must the government support with, such as upskilling, reskilling, or tax benefits. These things must be discussed today. The tripartite meeting tomorrow (May 14, 2024) is a tripartite matter which follows the mechanism. In the other 76 provinces, there is a provincial governor who chairs the provincial wage subcommittee meeting, in which all groups of businesses will be invited to discuss matters, like today, to find the best solution.

          After the meeting with the Permanent Secretary of Labour, Mr. Pairoj Chotikasathien said that today was a good sign that employers see the importance of increasing wages, following the letter submission to protest the nationwide increase in the minimum wage to 400 Baht by the Chamber of Commerce, the Federation of Thai Industries, the Construction Association, SMEs, and retail operators in fresh markets that use intensive labour. From the discussion with the entrepreneurs today, the Ministry of Labour is happy that all departments agree on the wage increase but are not agreeable to a simultaneous nationwide approach. At the same time, they have sympathy for the workers who have to bear a high cost of living and require wages appropriate to the economic situation. The Wage Committee will carefully consider, under the tripartite principle, how to increase the minimum wage throughout the country. The tripartite will have a meeting tomorrow (May 14, 2024) where there will be a resolution for the Provincial Wage Subcommittee to study the guidelines for increasing the minimum wage in each province in order to enter the larger Wage Committee’s consideration of increasing the minimum wage to 400 Baht.

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