In a bid to invigorate consumer spending and fortify Southeast Asia’s second-largest economy, Thailand’s government has unveiled plans to elevate the daily minimum wage to 400 baht ($10.84) starting October, as disclosed by a spokesperson on Thursday, as per Reuters.
The upcoming wage hike seeks to propel economic activity forward, with a committee convening later this month to evaluate industry readiness for the adjustment and to devise supportive measures for those in need of assistance in adapting to the changes.
This decision comes in the wake of a downward revision of the country’s 2024 growth forecast to 2.4 percent. However, optimism persists regarding the attainment of a 3.3 percent growth rate, buoyed by the launch of the government’s signature digital wallet handout program slated for the fourth quarter.
The move to increase the minimum wage follows last year’s uptick of 2.37 percent, which elevated it to a range spanning from 330 baht to 370 baht per day. Prime Minister Srettha Thavisin had previously expressed dissatisfaction with the magnitude of this raise, deeming it inadequate.
The current initiative aligns with the campaign pledge of the ruling Pheu Thai party to escalate the minimum wage to 600 baht by 2027, marking a notable departure from the preceding administration’s 5.02 percent increase implemented in 2022.
This latest decision underscores the government’s commitment to enhancing the livelihoods of workers and propelling domestic consumption, signaling a significant policy shift aimed at fostering economic resilience and equitable growth.
