Sourcing Thailand: Increase in Minimum Wage
Thailand increased the daily minimum wage on October 1.
Since 1 October 2022Thailand has experienced an increase in the daily minimum wage in all its 5 % on average. The aim is to help workers cope with rising inflation, which has never been so high in 14 years. The last increase in the daily minimum wage dates back to 2020.
The Thai minimum wage is set by the Wages Committee, a tripartite body composed of government representatives, employers and employees. This committee considers several key factors before proposing a new daily minimum wage, including:
- the cost-of-living index,
- annual inflation rate,
- the price of goods and services,
- production costs,
- labour productivity growth rate,
- labour productivity growth rate,
- the capabilities of companies.
The daily minimum wages therefore vary from province to province. They go from the lowest, 328 baht USD 8,59 per day in Yala, Pattani, Narathiwat, Nan and Udon Than provinces, at the highest, 354 baht (USD 9.27) per day in Phuket, Chonburi or Rayong.
With these new data, Thailand's average monthly minimum wage would be between 9,000 baht (US$ 235) and 10,000 baht (US$ 261), making it one of the highest in ASEAN (Association of Southeast Asian Nations).
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Source(s): ASEAN BRIEFING
Editor(s): S. SERVIERE