Thailand’s government is planning to raise the daily minimum wage to 400 baht ($10.84) starting October, according to a spokesperson on Thursday. This policy shift aims to stimulate consumption in Southeast Asia’s second-largest economy.
A committee will convene this month to evaluate the readiness of various industries for the wage increase and to consider potential assistance for those that may not be prepared, stated spokesperson Chai Wacharonke.
Despite revising down its growth projection for 2024 to 2.4% from 2.8%, the government remains optimistic that growth could rebound to 3.3% if its anticipated 500 billion baht “digital wallet” initiative, aimed at boosting spending, is rolled out in the fourth quarter as planned.
Last year, the government announced a modest increase in the daily minimum wage, ranging from 330 baht to 370 baht, a move criticized by Prime Minister Srettha Thavisin as insufficient. The ruling Pheu Thai party had campaigned on a pledge to raise the minimum wage to 600 baht by 2027.
In 2022, the previous government implemented a 5.02% hike in the minimum wage.
(Note: Exchange rate provided: $1 = 36.8900 baht)
