Thailand plans to raise minimum daily wage to 400 baht in Oct.

Thailand’s government announced plans to increase the daily minimum wage to 400 baht ($10.84) starting in October, according to a spokesperson on Thursday, reported by Reuters.

This move aims to stimulate consumer spending and bolster Southeast Asia’s second-largest economy.

A committee meeting later this month will assess industry preparedness for the wage increase and determine potential support for those requiring assistance in adapting.

The decision comes after the government revised its 2024 growth forecast downward to 2.4 per cent, though they remain optimistic about reaching 3.3 per cent with the launch of their signature digital wallet handout programme in the fourth quarter.

This move follows last year’s minimum wage increase of 2.37 per cent, bringing it to a range of 330 baht to 370 baht per day.

Prime Minister Srettha Thavisin previously expressed dissatisfaction with this raise, deeming it insufficient.

The current initiative aligns with the ruling Pheu Thai party’s campaign promise to reach a minimum wage of 600 baht by 2027.

The adjustment marks a significant shift from the previous administration’s 5.02 per cent increase implemented in 2022.

This latest decision reflects the government’s commitment to improving worker livelihoods and stimulating domestic consumption.