BANGKOK – The recent minimum wage adjustment by the Tripartite Committee of employers, workers, and the government has sparked widespread controversy. Even Prime Minister Srettha Thavisin explicitly stated his disagreement. Particularly in the southern border provinces, where the wage was increased by only 2 baht, he emphasized that this amount is not even enough to buy a single egg, prompting a need for a reevaluation.
“One cannot even buy one egg with two baht, it needs to be reviewed,” Srettha said the ruling Pheu Thai Party pledge is to significantly increase minimum wage and the ministry’s announcement for all the provinces must be reconsidered.
Pipat Ratchakitprakarn, Minister of Labour, stated on Monday, Dec. 11, that it is his responsibility as Minister of Labour to bring the unanimous resolution at the Ministry of Labour Tripartite Meeting on December 8 to present to the Cabinet meeting on December 12 to acknowledge and what the Cabinet’s opinion will be; it must be discussed further within the tripartite.
The Labour Ministry on December 8 announces new minimum wages effective January 1, 2024. Phuket saw the highest increase of 16 baht to 370 baht per day, followed by Bangkok and the surrounding provinces of Nonthaburi, Pathum Thani, Samut Prakarn, Samut Sakorn and Nakhon Pathom with a 10 baht increase, or around three percent increase, to 363 baht per day. The three provinces in the deep south, Yala, Narathiwat and Pattani see the lowest increase as well as lowest minimum wage, and increase of just two baht to 330 baht daily.
Weerasak Kaewboonpun, the representative of the workers on the wage committee, also argued with the PM that the government do not have the authority to reconsider this arrangement.
“The Prime Minister has the right to criticize and express opinions, but this matter is related to labor protection laws that stipulate, ‘The Tripartite Committee independently considers wages,’ and should be free from interference or influence from other parties,” he said.
“It would be better if the Prime Minister discusses wages, he should take the time to think about how to reduce the prices of goods, water, electricity, and the cost of living, so that people with this income can live, and entrepreneurs can sustain their businesses,’ he added.
Weerasak states that as a worker, whether satisfaction is achieved with these numbers is still debatable. However, earning 400 baht per day would be quite good in the current economic situation. Despite the economic challenges faced by workers, it is important to consider the difficulties faced by employers as well.
“Those who will benefit from the announced minimum wage adjustment, how many percent of them are genuine Thai workers? Currently, there are approximately 500,000 Thai workers, while more than 5 million are legal foreign workers entitled to these benefits. Meanwhile, the prices of various goods will increase in line with the rising wage rates, and more than 70 million Thais will bear this burden,”
The representative of the workers also said eariler that if employee demand a wage higher than what is reasonable, it will lead employers to replace human labor with machines. The impact will fall on the workers themselves. Let’s not forget that machines don’t demand holidays, sick leave, or salary increases.
“Therefore, we are in a situation where we can coexist well,” he said.
Attayudh Leeyawanich, the employers’ representative in the wage committee, explained that the current wage adjustment is aimed at providing entry-level workers with a living that is in line with the standard of living, current economic and social conditions and the capabilities of businesses in each local area.
“The 2 baht increase may seem small, especially in the southern border provinces where most provinces have seen an increase between 9-10 baht and a maximum of 16 baht, but employers themselves have to accept this to ensure the livelihood of their employees,” said Attayudh.
He emphasized that this minimum wage only applies to entry-level skilled workers. The specific figures for the minimum wage are the result of negotiations that employers in each province can accept.
