Wage hike to B400 unlikely before Oct 1
text size

Wage hike to B400 unlikely before Oct 1

Labour minister says national wage committee will take up the issue again on May 14

Labourers work at a construction site in Bangkok on Jan 18 this year. (Photo: Apichart Jinakul)
Labourers work at a construction site in Bangkok on Jan 18 this year. (Photo: Apichart Jinakul)

The promised nationwide increase in the minimum daily wage will probably not come until Oct 1, Labour Minister Phiphat Ratchakitprakarn said on Tuesday.

His statement put an end to speculation that the government would choose Labour Day, May 1, to announce a “gift” to workers across the country.

There will be an announcement on Wednesday, but it will simply be an update on efforts to secure agreement of the national tripartite wage committee for the proposed pay hike, he said.

The committee  —  comprising representatives of the government, employers and employees  —  agreed at its last meeting on April 17 that there would be another adjustment to the minimum wage this year.

“The next meeting of the wage committee is scheduled to be held on May 14 when further discussions will be carried out on the 400-baht daily wage proposal,” he said.

Mr Phiphat chairs the committee but stressed that he has no authority to order it to approve a government proposal.

Promised to voters by the ruling Pheu Thai Party during the 2023 general election campaign, the 400-baht daily wage has been piloted in 10 provinces since April 13.

The official minimum wage rates that took effect on Jan 1 this year range between 330 and 370 baht depending on the province.

“We should be able to announce the nationwide implementation of the 400-baht daily wage on Oct 1,” said Mr Phiphat.

The minister also affirmed the government’s plan to extend a soft loan programme offered to freelance and self-employed workers, which was initially due to end on April 30.

With over a million such workers already benefiting from access to loans on favourable terms, some funds earmarked for financing the project are still left, meaning the government is capable of lending the money to more people until it is used up, he said.

The loans is offered interest-free in the first two years, with 2% interest charged from the third year onwards, he said.

More good news for May Day will be progress in the government’s push to ratify two key conventions of the International Labour Organization (ILO): No.87 on Freedom of Association and Protection of the Right to Organise, and No.98 on the Right to Organise and Collective Bargaining.

Final approval of ratification is expected sometime between June and September, he said.

They are currently being reviewed by a committee on labour welfare and protection, and will then be forwarded to the cabinet, the Council of State, House of Representatives and Senate for approval, said the minister.

The National Human Rights Commission, meanwhile, urged the government to improve protection of labour rights. More legal amendments are required to improve protection of self-employed workers and others such as delivery riders who still do not receive basic work benefits due to loopholes in labour laws, it said.

Do you like the content of this article?
COMMENT (15)