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Minimum wage rise by May 1: Phiphat

BANGKOK: Labour Minister Phiphat Ratchakitprakarn pledges a B400 wage increase by May 1, along with support measures for small and medium-sized (SME) businesses.

economicspolitics
By Bangkok Post

Thursday 27 March 2025 10:01 AM


Labour Minister Phiphat Ratchakitprakarn. Photo: Bangkok Post

Labour Minister Phiphat Ratchakitprakarn. Photo: Bangkok Post

During the censure debate on Tuesday (Mar 25), People’s Party (PP) MP Sirikanya Tansakul criticised the government’s failure to implement the B400 wage policy earlier promised by the premier, reports the Bangkok Post.

“That promise was only a lie to the public for political gain,” said the MP.

Ms Sirikanya said an 11% rise in business shutdowns had taken place since the start of the Paetongtarn administration, while there was only a rise of 4% in new business openings. Many workers were laid off with little compensation, when the prime minister and the Cabinet were in charge of the compensation budget.

Mr Phiphat responded yesterday, saying the permanent secretary for labour, who chairs the wage committee, will convene a meeting before the Songkran festival to determine the next steps for a nationwide wage adjustment in time for May 1, Labour Day.

Previously, wage increases were introduced in Phuket, Chon Buri, Rayong, Chachoengsao and Koh Samui, he said.

But wage changes could affect some 5.8 million workers and 500,000 employers in the SME sector, the backbone of the economy, said the labour minister. A flat base wage, he said, would possibly lead to some 1.9mn workers, 30% of the SME employees, losing their jobs.

The government’s growth target of 3% would also be considered; as a result, certain employment sectors might get different levels of wage rises to limit the economic impact, said Mr Phiphat.

The minister also touched on the issue of foreign workers, focusing on Chinese nationals who might have worked in Thailand illegally. He said the state has been cracking down on foreign nominees, especially in the Eastern Economic Corridor area, to promote the employment of local workers.