Thailand to Increase the Minimum Daily Wage
Thailand’s minimum daily wage is set to increase by this year’s end, according to Labor Minister Phiphat Ratchakitprakarn. Still, the daily wage in some areas and for certain occupations wouldn’t reach THB ฿400 (approximately USD $11) as Prime Minister Srettha Thavisin has promised due to inflation.
While the spike in minimum wage may seem promising, there are concerns over operating costs that may result in disparity between large companies and small and midsize enterprises (SMEs). In this Pacific Prime Thailand article, we take a closer look at the latest update on minimum wage in Thailand.
Increasing Minimum Wage in Thailand
As one of Pheu Thai Party’s main policies, the newly elected government has been pushing Thailand’s daily minimum wage to THB ฿400 (~USD $11) or roughly 19% up from the current average. The raise will affect most sectors, but workers will still be paid on a “pay-by-skill” basis.
“If the wage rises more than 10%, I believe employers won’t be able to handle it, and SMEs will disappear from the country,” said the Labor Minister Phiphat Ratchakitprakarn, explaining how this new benchmark will cause prices of services and goods to increase despite being beneficial for workers.
The new wage will be finalized by Thailand’s Tripartite Wage Committee by November 2023 so that Thai workers receive this “New Year’s gift” in time. It’s still unclear whether discussions between employers’ representatives and the workers’ agencies have taken place. The Committee comprises of:
- The Labor Ministry representing the government
- Thai Labor Solidarity Committee and State Enterprises Workers’ Relations Confederation representing the workers
- Employers’ Confederation of Thailand representing the employers
Thailand’s Current Minimum Daily Wage
According to the National Wage Committee, the minimum daily wages in Thailand vary from area to area, but the average wage is THB ฿337 (~USD $9.10). As the lowest minimum wage is THB ฿328 (~USD $8.86), the increase to ฿400 (~USD $11) is going to create a big impact on the country’s economic system.
Provinces with the highest minimum wage of THB ฿354 (~USD $9.56) are Chonburi, Phuket, and Rayong, while provinces with the lowest minimum wage of THB ฿328 (~USD $8.86) are Narathiwat, Nan, Pattani, Yala, and Udon Thani. And the metropolis of Bangkok has the minimum wage of THB ฿353 (~USD $9.53).
What Is the Average Salary in Thailand?
Depending on your occupation and location, the salary of employees in Thailand can range from THB ฿15,000-350,000 (~USD $405-9,430). However, the information about the country’s pay range and average salary differs according to its source.
Time Doctor’s data shows that the average salary in Thailand is THB ฿1,160,000 (~USD $31,270) per year and THB ฿96,900 (~USD $2,610) per month. The minimum salary is around THB ฿24,500 (~USD $660) a month, while high salaries can reach up to THB ฿433,000 (~USD $11,670) a month.
Paylab, however, has a dramatically different salary range. According to the site, which calculates salaries using quantitative regression, the minimum salary in Thailand is around THB ฿6,538 (~USD $176), while the highest average is around THB ฿34,972 (~USD $940).
Salary vs Wage
Wages can vary depending on the number of hours or days an employee works along with their hourly rate. Unlike this variable compensation, salary is fixed and stays the same regardless.
Monetary compensation isn’t the only factor in the average monthly salary. It also includes paid leaves and insurance as well as accommodation and transportation payments. The average wage, on the other hand, is simply the monetary compensation an employee receives.
What Factors Influence Salary?
Factors like employee’s qualifications, experience, profession, education, and city they’re working in affect their average salary. Employees with more years of experience earn more than the base salary. Just like other countries around the world, the average income also depends on one’s job title.
In some professions, expats receive higher salaries than a native. Similarly, employees can have the same work experience, but those with higher education are likely to earn more. Big cities like Bangkok and Chiang Mai also tend to pay higher salaries.
Access Quality Healthcare with Pacific Prime Thailand
Whatever your salary is, it pays to protect yourself against unexpected injuries or illnesses by securing health insurance. With a comprehensive health insurance plan, you have peace of mind knowing that your medical needs can be met at any time.
Whether you’re looking for expat health insurance, family health insurance or anything in between, Pacific Prime Thailand can help you find the best plan for your needs and budget with over 20 years of industry experience and a team of expert advisors.
Already have an employer-provided insurance plan? We can make sure you have the coverage you need and help you if you don’t. Contact us for impartial advice and a free quote today!
After graduating at the top of her class and earning her Bachelor’s Degree in English from Thammasat University, Natthachamon has been practicing her writing skills and making education more easily accessible for Thai children as an Educational Content Creator and English Curriculum Developer for various educational facilities and organizations across the country.
Natthachamon is also a mother of two cats, a board game enthusiast, and a big bookworm who enjoys everything and anything sweet.
- Caisse des Français de l’Étranger: Everything You Need to Know in 2024 - January 31, 2024
- Thailand to Increase the Minimum Daily Wage - October 4, 2023
- Respiratory Illnesses in Thailand - September 5, 2023
Comments
Comments for this post are closed.
We'll notify you
when our team replies!