Labour Minister will ask national wage panel to look at new ways to calculate fairer rates
The government will consider another increase in the daily minimum wage by April when it will ask the tripartite wage committee to review pay rates.
The wage increase is expected before the Songkran holiday in mid-April, Labour Minister Phiphat Ratchakitprakarn said on Friday.
On Wednesday, the tripartite committee, comprising government, employer and employee representatives, decided unanimously to stand by the wage increase it approved on Dec 8.
Accordingly, new rates ranging from 330 to 370 baht, depending on the province, will take effect on Jan 1.
The current rates are between 328 and 354 baht. The increases will range from 2 to 16 baht, or an average of 2.4%. The last increase approved by the committee, in October 2022, was 5%.
The modest increases drew strong criticism from Prime Minister Srettha Thavisin and others, and Mr Phiphat asked the wage committee to reconsider.
While the nominally independent committee refused to bow to political pressure, it acknowledged that its method for calculating rates based on economic conditions might need adjusting. It also left the door open to another wage hike in April or May.
Mr Phiphat said he would ask the committee to study the possibility of varying wage rates based on the district, municipality or type of career instead of imposing a flat rate for a whole province.
A flat rate is not fair to workers in certain provinces, he said.
“Some labourers work in downtown areas with active economic activity and high living costs but receive the same low rates as workers in less economically advanced areas,” he said.
“That’s not fair. The rates should be adjusted.”
Mr Phiphat said the permanent secretary for labour would set up a panel to study the possibility of another wage rise, with input from the finance and commerce ministries, the Bank of Thailand and the National Economic and Social Development Council.
The wage rates that take effect in January fall short of the 400 baht that the Pheu Thai Party promised during its election campaign earlier this year, which rattled businesses who said that it threatened to make the country less competitive.
But the government is determined to go on the offensive in its push for a higher daily wage hike for workers next year, spokesman Chai Wacharonke said on Thursday.
Citing findings from a study, Mr Chai said a suitable amount to support a worker and their family is 560 baht per day.