Thai labor minister to propose bigger minimum wage hike

Construction workers are seen in a transport vehicle early morning in Bangkok, Thailand, Jan. 15, 2019. Photo by Reuters

His comments come after Prime Minister Srettha Thaivsin said the hike agreed with government officials, the private sector and labour groups last week was too low.

“I don’t agree with the wage hike plan and want it to be reconsidered,” Labour Minister Phipat Ratchakitprakarn told reporters, adding he would re-propose a different hike to cabinet later this month.

A wage committee including businesses and labour groups agreed to raise the threshold to between 330 baht and 370 baht ($9.33 to $10.46) per day, up from 328-354 baht at present. The level varies between different parts of the country.

A previous government last October rose minimum wage by 5.02%.

The ruling Pheu Thai party had campaigned on a key populist platform of raising the minimum wage to 400 baht day.

Businesses have flagged rising costs and wages as a factor in holding back competitiveness amid sluggish economic growth.

Southeast Asia’s second-largest economy grew a slower-than expected 1.5% in the third quarter from a year earlier, the slowest pace this year, on weak exports and government spending.

The Federation of Thai Industries on Tuesday raised concerns that a higher minimum wage would impact business that would shoulder the costs burden along with higher interest rates amid global uncertainty.