Start raising the minimum wage to 400 baht/day on 1 Oct 2024

Thai workers are preparing to receive the minimum wage raised to 400 baht nationwide, starting from October 1, 2024, along with being ready to cope with rising consumer prices.

On Labor Day (1 May 2024) Mr. Phiphat Ratchakitprakarn, Minister of Labour mentioned the raise in minimum wage to 400 baht per day in all businesses, occupations, and provinces. This is an important policy of the government’s announcement in 2024.

Mr. Phiphat reaffirmed his intention that although the minimum wage cannot be raised to 400 Baht nationwide immediately on May 1, 2024, he is confident that by 2024, the minimum wage at 400 Baht will cover all provinces nationwide.

Moreover, Mr. Phiphat added that on October 1st, the minimum wage will be equal in all 77 provinces in Thailand, whether Pattani, Yala, or Narathiwat, which were originally raised by only 2 baht. This time, the minimum wage will be raised at the same rate to move forward to a minimum wage of 600 baht per day in 2027.

What is the minimum wage rate in 2024?

For the minimum wage in 2024, the Ministry of Labour announced that the Minimum Wage Commission would adjust the minimum wage rate, effective January 1, 2024.

The average minimum wage is 340 baht in 16 provinces, followed by 345 baht for 15 provinces in 15 provinces, and the lowest wage is Narathiwat, Yala, and Pattani at 330 baht, while the highest wage is Phuket at 370 baht.

In each area of the country, the rise of minimum wage is not the same, depending on the factors of each province, such as economic, social, and industrial size, and the varied need to use labor.

Piloting the 400-baht minimum wage in hotel businesses in 10 province

Since April, the minimum wage has been raised to the ceiling of 400 baht per day. However, there are only hotel operators with four stars or more that have 50 or more employees, piloting 10 tourist destinations in areas with high tourism income.

Bangkok, only in Pathumwan and Wattana District, increased by 37 baht
Krabi, only Ao Nang Subdistrict Administrative Organization, increased by 53 baht
Chonburi, only Pattaya City, increased by 39 baht
Chiangmai, only Chiang Mai Municipality, increased by 50 baht
Prachuap Khiri Khan, only Hua Hin District, increased by 55 baht
Phangnga, only Kuk khak Subdistrict, increased by 55 baht
Phuket, increased by 30 baht
Rayong, only Phe Subdistrict, increased 39 baht
Songkhla, Hat Yai City Municipality, increased by 55 baht
Surat Thani, Kohsamui City, increased by 55 baht

The higher the minimum wage, the higher the cost of living

The consequence of the increase in wages was that the cost of living, especially in goods and services, was higher because the minimum wage for workers was increased, resulting in higher production costs for goods and services as well.