Bangkok: Labor Minister Pipat Ratchakitprakarn has reaffirmed his commitment to increasing the minimum wage to 400 baht, drawing inspiration from the 2012 wage model. In a Senate meeting, he highlighted the goal of achieving a 600 baht minimum wage by 2027, contingent on the country’s GDP performance. Concerns were raised by Senator Thewarit Maneechai regarding the Prime Minister’s dedication to this initiative, questioning potential obstacles and whether Minister Pipat is left to advance the policy independently.
According to Thai News Agency, the Senate meeting was chaired by Gen. Kriangkrai Srirak, First Vice President of the Senate, and focused on discussing the challenges faced in implementing a nationwide 400-baht minimum wage increase. Senator Thewarit asked Minister Pipat to elaborate on the difficulties encountered, questioning if there are any hindrances or if the Minister is solely striving for the wage increase without government support. The senator also noted the disparity between GDP growth and minimum wage increases, citing a gap in 2022 where GDP per capita rose to 767 baht, while the minimum wage increase was only 341 baht.
Senator Thewarit expressed skepticism about the Prime Minister’s commitment to raising the minimum wage to 600 baht by 2027, a policy promise made before the 2023 elections. He questioned the Prime Minister’s sincerity and whether Minister Pipat is expected to pursue the policy on his own. The senator also sought clarification on the primary obstacles to implementing a 400-baht minimum wage and inquired about plans to mitigate impacts on businesses, as well as the government’s strategy to achieve the 600-baht target by 2027.
Minister Pipat responded by emphasizing his ongoing efforts, referencing a similar approach used in 2012 for increasing the minimum wage across 77 provinces. He acknowledged the challenges faced, as only four provinces have made progress in setting a new wage. Pipat stressed the importance of minimizing the impact on SMEs, noting that their collapse could severely affect the national economy. A forthcoming meeting of the tripartite minimum wage committee will address these issues, despite its term ending soon.
Minister Pipat conveyed optimism about the possibility of implementing a 400-baht minimum wage initially in pilot provinces, particularly for occupations with stronger economic foundations. He outlined potential measures to alleviate business impacts, such as adjusting income tax deductions and reducing employer contributions to the social security fund. Discussions with other ministries are planned to explore additional support mechanisms.
The Minister also reiterated the necessity of considering economic indicators, including GDP growth and inflation rates, before increasing the minimum wage to 600 baht by 2027. He highlighted that the Ministry of Labor has identified 129 occupations eligible for wages exceeding 400 baht, with efforts ongoing to include the remaining 13 occupations. Minister Pipat reaffirmed his dedication to advancing the minimum wage increase, contingent on the decisions of the tripartite committee.
