The Cabinet is expected to order a review of the new daily minimum wage rates, which a tripartite wage committee approved. Minister of Labor Phiphat Ratchakitprakarn stated that he does not have the authority to review the rates and will request the cabinet to consider ordering the review. However, if the committee stands by its decision, the government may have limited options.
The committee’s decision to raise the daily minimum wage rates by 2 to 16 baht has faced criticism from Prime Minister Srettha Thavisin, who believes the increases are too low. He plans to seek talks with the committee in the coming weeks and may reject the proposed rates if they are presented to the cabinet.
Business organizations have urged the government to respect the committee’s decision to ensure fairness for both employees and employers. The group argues that a sharp increase in the daily minimum wage could negatively impact the slow-recovering economy.
The new daily minimum wage rates are set to take effect on January 1, 2024, with variations among provinces ranging from 330 to 370 baht. Despite the increases, they fall short of the 400 baht per day minimum wage promised by the Pheu Thai Party during its election campaign earlier this year, which raised concerns among businesses about higher operating costs and reduced competitiveness. (NNT)
