Thailand plans to raise the minimum wage by 5-8%
Thailand is planning to raise the minimum wage for workers. This increase would be the first time the minimum wage has been raised in more than two years. Under the proposal, the minimum wage will increase by between 5% to 8% in order to help workers cope with the impact of the pandemic.
Thailand’s national wage committee plans to recommend the wage increase for the daily minimum wage when it meets later this month.
- The daily minimum wage would be increased to between 329 baht and 353 baht ($9.19-$9.86)
- The new increased wages are planned to come into effect later this year.
- Each province in Thailand has their own minimum wage. The increase will apply to all provinces but the actual wage will differ across the country.
What will the new minimum wage be in Thailand?
Under the proposals, the daily minimum wage would be increased to between 329 baht and 353 baht ($9.19-$9.86). However, it is important to note that these proposals are still subject to cabinet approval.
The government hopes that the wage increases will be implemented later this year, rather than early next year. The quick implementation of these plans is due to the government’s wishes to help people who have been having a lot of trouble dealing with the increase in living costs. Also, the fact that the minimum wages has not been adjusted in a long time is another significant factor.
The last time the minimum wage was increased was in January 2020, when it was increased by 1.6% – 1.8%.
Thailand’s competitive wage structure?
The new minimum wage would increase Thailand’s monthly minimum wage to between 9,870 (279.5 USD) and 10,590 THB (299.3 USD). However, Thailand has very low company contributions in relation to wages.
For example, Thai law requires both the employee and employer to contribute at least 5% of the monthly salary to a social security fund. This contribution is capped to 750 THB (approx 21 USD) for both parties.
This rate of contribution by the employer is highly competitive and is a great incentive for companies looking to establish a presence in South-east Asia.
How can Belaws help?
To see how these new changes to the minimum wage in Thailand may affect your business, why not book a consultation with our experts.
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Please note that this article is for information purposes only and does not constitute legal advice.
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Frequently asked questions
Minimum wage be in Thailand?
Under the new proposals in 2022, the daily minimum wage would be increased to between 329 baht and 353 baht ($9.19-$9.86). However, it is important to note that these proposals are still subject to cabinet approval.
What is a good salary in Thailand?
The average salary in Thailand is US$877.64 per household, based on the 2021
What is a good salary in Bangkok?
|Programme & Project Management||$76,000|
|Sales & Business Development||$47,000|
|Logistics, Operations & Purchasing||$46,000|
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