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Thailand’s Labour Minister Phiphat Ratchakitprakarn Confirms Nationwide Minimum Wage Hike to 400 Baht by Year-End

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The Labour Ministry has officially promised that by the end of the year, a nationwide minimum wage of 400-baht will be implemented, confirmed by Minister Phiphat Ratchakitprakarn. However, the tripartite wage committee is currently in a holding pattern, waiting for the official appointment of two crucial members. Both the Permanent Secretary of the Ministry of Labour and the Director-General of the Department of Labour Protection and Welfare (DLPW) retired in late September.

Labour Ministry Meeting

Just yesterday, the ministry took a step forward by appointing Mr. Boonsong Thapchaiyuth as the new permanent secretary. The name of the new director-general of the DLPW will be submitted to the cabinet for approval next week, Mr. Phiphat stated. In addition, there’s a question mark hanging over the representative from the Bank of Thailand (BoT). This individual retired last year but is eligible to stay on the wage committee until March next year. The new permanent secretary will soon clarify this issue with the BoT.

“I confirm that we are fully committed to increasing the minimum wage to 400 baht, and it will be done by the end of the year. Once the committee is ready, we can push ahead,” affirmed Mr. Phiphat.

Happy workers

Meanwhile, the Labour Ministry also announced plans yesterday to amend some regulations over the next two months to ensure monthly employees gain overtime (OT) rights. The minister recently engaged in discussions with Panat Thailuan, president of the National Congress of Thai Labour (NCTL), along with representatives from seven labour councils. They collectively submitted a petition advocating for changes to the Labour Ministry’s Ministerial Regulations No.7 and No.13, which are based on the Labour Protection Act BE 2541 (1998).

At present, the regulations in question exclude monthly salaried employees from receiving overtime pay on the same terms as daily wage workers. In response, Mr. Phiphat designated a tripartite panel composed of seven representatives from each group of employers, employees, and the government to thoroughly study any potential impacts of these regulation changes. The panel will consider allowing monthly workers to receive overtime pay at 1.5 times their hourly rate on regular workdays and triple their rate for work done on days off.

Meeting room

Furthermore, Mr. Phiphat has instructed the DLPW to organize meetings on this subject and report their findings on the proposed law amendments within two months. The clock is ticking, but the Labour Ministry seems resolute in enhancing wage structures and extending fair compensation to monthly salaried employees. The nation watches closely as these developments unfold, hoping for a fairer, more equitable working environment for all.

32 Comments

  1. Anna L. October 1, 2024

    Finally! This wage hike is long overdue. Many workers have been struggling to make ends meet for years.

    • Maverick October 1, 2024

      I disagree. This could lead to increased inflation and harm small businesses.

      • Anna L. October 1, 2024

        True, but isn’t it the government’s job to find a balance? Workers deserve a living wage.

      • Xander45 October 1, 2024

        Exactly! Worker exploitation needs to stop. A fair wage is the least they can get.

  2. Joe October 1, 2024

    What about the sectors that can’t afford this hike? Are we going to see mass layoffs?

    • SunshineMom October 1, 2024

      Businesses need to adapt. Maybe cut on executive bonuses instead of firing workers?

      • Joe October 1, 2024

        Easy to say when it’s not your business. Some won’t survive this change.

      • Educated_Reader October 1, 2024

        Market dynamics will adjust. Survival of the fittest means those who can adapt will thrive.

    • BahtWatcher October 1, 2024

      Sectors like tourism might take a hit, but the long-term benefit of a healthier workforce might outweigh the immediate downsides.

  3. EconomistSally October 1, 2024

    This is a step towards reducing income inequality in Thailand. The government is finally addressing a critical issue.

    • SaraJ October 1, 2024

      Is reducing inequality worth risking economic stability, though?

      • EconomistSally October 1, 2024

        In the long run, yes. Economic equity fosters sustainable growth. Short-term instability is a necessary evil.

    • FutureThinker October 2, 2024

      Well said! Also, workers with more money to spend will boost the economy.

  4. Tommy October 1, 2024

    Doesn’t anyone care about the burden this places on small businesses? They already struggle with high costs!

  5. Krit October 2, 2024

    More people get decent wages, but also more regulations. Hard to say if it’s worth it.

  6. Mae October 2, 2024

    As a small business owner, I’m worried. 400 baht doesn’t sound a lot, but it adds up.

    • HappyWorker October 2, 2024

      We’re all worried, Mae. But if workers are paid well, they’re more motivated and productive.

      • Mae October 2, 2024

        I hope you’re right. It’s tough trying to balance everything.

  7. Nina D October 2, 2024

    Glad to hear monthly employees might get overtime pay! It’s only fair.

    • BossMan October 2, 2024

      Fair? Maybe. Feasible? Not so sure. Companies have budgets, and this could blow them.

      • Nina D October 2, 2024

        Budgets can be adjusted. Employers need to value their workforce.

  8. LoneWolf October 2, 2024

    Labor reforms are necessary but need careful planning and execution to avoid unintended consequences.

  9. Pat October 2, 2024

    So they have two months to figure this out? That seems like a tight deadline. Hope they manage.

  10. Larry Davis October 2, 2024

    Good move! Better pay and rights for workers mean healthier families and communities.

  11. WorkerB123 October 2, 2024

    How about we cut some of the excessive bureaucracy first? That would save money and time.

  12. Don October 2, 2024

    Overtime pay sounds great, but who’s going to foot the bill? More burdens on employers.

  13. Sue October 2, 2024

    Hope these changes don’t mean more unpaid leave and benefit cuts for us.

  14. Carl Blume October 2, 2024

    The government needs to offer more support to employers during this transition.

    • Betty Sue October 2, 2024

      But what kind of support? Tax breaks? Subsidies? Or more loans that need repaying?

      • Carl Blume October 2, 2024

        Subsidies would be a good start. Helps businesses without adding debt.

  15. HumanistR October 2, 2024

    Proud of the labor ministry for taking these steps! Workers have endured enough.

  16. KeenView October 2, 2024

    This feels like a political move ahead of elections. Will they genuinely follow through post-elections?

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