A nationwide wage adjustment will take effect on July 1, raising the minimum daily wage to 400 baht for all workers in Bangkok and many employed in Thailand’s tourism and service sectors.
The change, confirmed by the national wage committee on June 17, aims to address wage disparities and bolster incomes in key economic zones.
The revised rate will extend beyond the capital to include hotels and entertainment venues across the country, particularly establishments with more than 50 rooms or operating under the Service Establishments Act. Previously, the 400-baht minimum wage was restricted to select provinces with strong tourism activity, such as Phuket, Chon Buri, and Koh Samui.
The current wage levels vary widely by region, with workers in Bangkok receiving 372 baht per day and those in other provinces earning between 337 and 380 baht. The expansion of the 400-baht rate is expected to benefit approximately 700,000 workers nationwide, primarily in the hospitality and entertainment sectors.
To alleviate the impact on businesses, the Ministry of Labour is working with six commercial banks to offer 30 billion baht in soft loans. Additional relief measures are under consideration as the ministry monitors the rollout.
While some observers speculated that the wage policy might be intended to retain foreign workers amid geopolitical tensions, the Ministry of Labour has denied any link between the wage hike and migration trends. Officials stated that the measure was part of a broader economic strategy rather than targeted support for any specific nationality.
The increase aligns in part with campaign pledges made by the ruling Pheu Thai Party in the 2023 general election, which included raising the nationwide minimum wage to 600 baht by 2027. However, attempts to implement a uniform national rate have faced resistance from the independent wage committee and business groups who cite regional economic differences.
The wage committee approved the increase by a two-thirds majority following extended debate. Labour Ministry officials, including permanent secretary Boonsong Thapchaiyut, participated in the discussions and later clarified the scope and intention of the new policy.
