From 1 April 2018, the daily minimum wage will increase in a range up 5 to 22 Baht ($0.16-0.70) depending on the province. Three relief measures were also approved to ease the impact for employers.
New Minimum Wage
The Minimum Daily Wage will increase to a range from 308 Baht to 330 Baht ($9.86-10.56). The average minimum wage will be 315.97 Baht per day ($10.08). Here are the details of the rise province by province:
This hike will be effective from April 1st, 2018.
Three relief measures have also been adopted in order to ease the pressure that some employers may face implementing the new wage rates and improve the competitiveness of small and medium-sized enterprises (“SMEs”).
1. Corporate tax deduction for expenses arising from the wage rises: Employers who meet specific conditions will be exempted from corporate income tax for 15% of the minimum wage expenses from 1 April 2018 to 31 December 2018. Eligible employers are those with revenue not more than 100 million baht (about $3.2 million) and fewer than 200 employees.
2. Training for operators to increase the productivity of SMEs: 5 billion Baht (about $160.000) will be allocated to help about 50.000 selected SMEs reduce their costs by 10% over the next three years.
3. Corporate tax deduction to improve production efficacy through modernization: 50% corporate income tax deduction for three years will be allowed to SMEs which change their machinery and adopted digital and internet-based services to help manage businesses. SMEs that have high expenses for human resources to improve skills for high tech are also eligible.
The Prime Minister assigned concerned agencies to find additional relief measures.