Prime Minister Srettha Thavisin has demanded an improvement on the proposed increases of only 2-16 baht in the daily minimum wage, which were withdrawn from cabinet consideration on Tuesday.
Labour Minister Phiphat Ratchakitprakarn withdrew the proposal and would submit revised figures within two weeks at the latest, Mr Srettha said after the cabinet meeting.
“It should not be the same figures. … You know that I do not prefer these figures,” the premier said.
The new wage rates were approved last week by the tripartite national wage committee made up of representatives from business, labour and government. The committee is independent under the law and its word is supposed to be final. The cabinet can only acknowledge its decisions.
The panel agreed to raise the minimum daily rate to between 330 and 370 baht, depending on the province, from 328 to 354 baht at present. The new rates are scheduled to take effect on Jan 1.
The wage committee in October last year approved increases averaging 5% for 2023.
Mr Phiphat said that the proposed increment of 2-16 baht meant that the minimum wage would rise by only 2.4% on average.
“I don’t agree with the wage hike plan and want it to be reconsidered,” said Mr Phiphat, who is a member of the Bhumjaithai Party, the second-largest party in the Pheu Thai-led coalition.
The wage committee took a cautious approach, noting the impact of the Covid-19 pandemic on many employers, the minister said.
In any case, he promised the revisions would be concluded within this month.
During the campaign for the May 14 election, the Pheu Thai Party had promised to raise the minimum wage to 400 baht by Jan 1, and to 600 baht by the end of its four-year term.
Government spokesman Chai Wacharonke said on Tuesday that factors during the pandemic could not apply because the economic slowdown during the 2020-21 period was excessive and did not reflect actual economic circumstances.
He said the labour minister withdrew the proposed increments from consideration because the cabinet had no authority to order the revision. Only the wage committee has the power to decide, Mr Chai acknowledged.
Pichai Naripthaphan, an adviser to the prime minister, said current wage rates could not cover workers’ cost of living.
As well, he said, the minimum daily wage should be the same in all provinces to avoid inequality.
“An increase in the minimum daily wage naturally benefits the overall economy,” he said. “Businesses will be able to adapt, apply more technology and enhance workers’ skills. These will boost the overall economy.”
The Federation of Thai Industries on Tuesday raised concerns that a higher minimum wage would impact business that would shoulder the cost burden along with higher interest rates amid rising global uncertainty.