The labour policy of the Pheu Thai-led government, particularly the plan to raise the daily minimum wage to 400 baht nationwide, remains unchanged, according to caretaker Labour Minister Phiphat Ratchakitprakarn.
Mr Phiphat on Thursday gave his assurance that the wage increase targeting certain professions and specific areas is expected to take effect on Oct 1, with further details to be announced soon.
The national wage committee, chaired by the permanent secretary for the Ministry of Labour, is expected to meet twice before announcing the specific details of the increase, he said.
“The new wage rate will be disclosed this month, but it will only apply to certain groups of workers and entrepreneurs,” he said.
“The government is committed to carrying on the previous government’s policy, and the labour ministry has already submitted its proposal [for inclusion in the government’s policy statement](#).”
Raising the daily minimum wage was a key election promise of the Pheu Thai Party. It pledged last year to increase the wage to 400 baht within its first year in power and to 600 baht by 2027.
The current minimum wage is between 330 and 370 baht depending on the province.
The national wage committee — with representatives from government, employers and labour groups — approved a 400-baht daily wage on March 26, but with limitations.
The new rate took effect in parts of 10 provinces on April 13, including Phuket, Koh Samui in Surat Thani, Pattaya in Chon Buri, Chiang Mai City in Chiang Mai, and Pathumwan and Watthana districts in Bangkok. It applied to tourism-related businesses and four-star hotels with at least 50 employees.
Mr Phiphat also pledged to provide assistance to employees affected by business closures, ensuring that they receive proper compensation.
Based on information from the Department of Industrial Works, from January to July this year 667 factories were shut down and 1,260 were opened. The rate of factory openings was close to the five-year average, he said.
After comparing the data on closed factories with that of new factories, there was an increase in investment of 167.6 billion baht and an increase in employment of 25,663 people.
Meanwhile, Thaweesan Wichaiwong, president of the Khon Kaen Industry Council, said the Federation of Thai Industries is opposed to a nationwide, across-the-board wage of 400 baht.
He said the increase should be adjusted based on inflation indices and economic conditions of each province; otherwise it will adversely affect small businesses which have to bear additional costs.
Eventually, he said, the extra costs will be passed on to consumers, and some manufacturers might relocate to countries with lower labour costs.