On July 9, 2024, the Permanent Secretary of Labour, Mr. Pairoj Chotikasathien, spoke about the case of the 2nd Wage Committee and a group of five people from the Employers’ Confederation of Thai Trade and Industry who submitted a petition to the Ombudsman requesting an investigation into the performance of his duties as it was observed that the meeting minutes of the 22nd Wage Committee Meeting No. 5/2024 on May 14, 2024, violated labour protection laws. This is because in the minutes of the meeting, there was a resolution to adjust the formula for calculating the new minimum wage to 400 Baht, and it was seen that the consideration of adjusting the said wage rate formula was a consideration that did not comply with Section 87 of the Labour Protection Act B.E. 2541. In this regard, the Labour Minister informed the audience that the 22nd Wage Committee Meeting No. 5/2024, on May 14, 2024, had an agenda to consider the framework for reviewing the minimum wage rate in 2024 in order to pass a resolution approving the framework for every province to use as a guideline for reviewing the appropriateness of the minimum wage rate. It presented four guidelines for the Wage Committee to consider. In the meeting, a majority of 7 to 5 voted to approve the second approach, which is to have the subcommittee consider the provincial minimum wage rate using a formula for calculating the minimum wage rate according to the resolution of the Wage Committee on February 27, 2024.
The Permanent Secretary of Labour added that the formula is a set of criteria determined by the Tripartite Committee. There is no provision in the Labour Protection Act B.E. 2541 in Section 87 to allow every province to independently consider proposing its own provincial minimum wage rate. Section 87 requires the Wage Committee to study and consider the facts regarding the wage rate that the employee receives, combined with other facts, taking into account the cost of living index, inflation rate, the standard of living, production costs, price of goods and services, business capabilities, labour productivity, gross national product, and economic and social conditions.
Determining the formula for calculating the minimum wage rate only takes some variables, such as quantitative data, that can closely reflect reality for both employers and employees. For a meeting that must have a resolution of not less than two-thirds, Section 82 stipulates that it is a matter of meeting to consider setting the minimum wage rate. This time, it is not yet considered to determine the minimum wage rate. Therefore, the majority vote of the meeting can be taken as the resolution of the meeting. When every province has considered proposing the minimum wage rate to the Wage Committee, the Wage Committee will reconsider the determination of the minimum wage rate for 2024 from August to September 2024.
“As for the concerns of many parties regarding the increase in the minimum wage to 400 Baht nationwide, the Ministry of Labour has brought government policy to study and expand the results, all of which will be within the criteria stipulated by law with academic principles and standards. This will be under the authority of the Tripartite, which includes representatives of employers, employees, and the government. It will consider increasing the minimum wage rate to be appropriate and fair to employers and employees,” said Mr. Pairoj.
