Bangkok, June 19, 2025 – Thailand’s restaurant sector is bracing for increased operational pressure following the national wage committee’s decision to raise the minimum daily wage to 400 baht, effective July 1, for workers in Bangkok and across most service industries nationwide.
The current minimum wage in the capital stands at 372 baht per day. The upcoming adjustment represents a significant cost shift for small and medium-sized businesses, particularly within the food service industry already contending with economic headwinds.
Thaniwan Kulmongkol, president of the Thai Restaurant Association, said the wage hike could worsen challenges for an industry still struggling to regain pre-pandemic momentum. While many restaurant owners already offer wages above the legal minimum to attract Thai workers, the increase will nonetheless add pressure on staffing budgets.
According to Ms Thaniwan, only a small portion of restaurant staff—typically unskilled or entry-level roles—currently earn minimum wage. However, she warned that the adjustment may lead to upward pressure on wages across all levels as staff earning just above the new threshold begin to seek higher pay.
The wage increase may benefit some unskilled foreign workers currently employed in restaurants, but Ms Thaniwan cautioned that its broader impact could be destabilising. She urged better communication between business owners and employees to manage expectations during an already difficult period.
Restaurant operators like Suthiphon Somvasoon, who runs Kaotom Thewet in Bangkok’s Phra Nakhon district, echoed these concerns. He reported persistent labour shortages and noted that few Thais are willing to work in restaurant jobs, a gap increasingly filled by foreign workers.
At his establishment, most staff already receive more than 400 baht daily, with only newly hired, inexperienced workers starting at the minimum wage. The restaurant also provides meals and accommodation as incentives to attract and retain staff.
Mr Suthiphon noted that the current economic climate—marked by rising food costs and limited consumer spending—makes additional wage increases untenable. He said the business cannot afford further adjustments and warned that higher wages may translate to increased menu prices.
He called on the government to support the hospitality sector through targeted tourism promotion and economic stimulus measures. Addressing issues such as tourist overcharging by taxis and tuk-tuks would improve the visitor experience and potentially boost restaurant revenue, he added.
