# Thailand will increase its minimum wage to 400 THB

- Link: https://www.thailand-business-news.com/economics/162079-thailand-will-increase-its-minimum-wage-to-400-thb
- Published: 2024-09-13T07:41:07+07:00
- Author: J. Allan

Thailand is considering raising its national minimum wage to 400 Thai Baht, which
is approximately equivalent to 11.7 US Dollars.

## Key takeaways

 * **Minimum Wage Increase** Thailand will increase its nationwide minimum wage 
   to THB400 (US$11.7) per day starting October 1, 2024
 * **Significant Raise** This increase represents a notable hike of about 14% compared
   to previous rates, which were between 330 and 370 THB per day
 * **Companies with fewer than 200 employees** will not be subject to the wage increase
   for their employees.

The Minister of Labour of Thailand, Phiphat Ratchakitprakarn, explained that the
increase will come into effect from October 1.

ADVERTISEMENT

Phiphat added that after discussions with business operators and a study conducted
by the subcommittee established by the Ministry of Labour, the agency confirmed 
that the national minimum wage increase will take effect on October 1 as planned.

The study conducted by the Social Security Office (SSO) confirmed that the increase
should apply to companies or factories with at least 200 workers.

### Related**Posts**

###  󠀁[Bank of Thailand Raises Growth Forecasts but Warns Recovery Remains Concentrated](https://www.thailand-business-news.com/banking/337755-bank-of-thailand-raises-growth-forecasts-but-warns-recovery-remains-concentrated)󠁿

###  󠀁[Oil Prices Surge on Saudi Attacks, Raising Risks for Thailand’s Recovery](https://www.thailand-business-news.com/business/335915-oil-prices-surge-on-saudi-attacks-raising-risks-for-thailands-recovery)󠁿

###  󠀁[Thailand Faces a New Economic Test Nearly 30 Years After Its IMF Rescue](https://www.thailand-business-news.com/economics/334123-thailand-faces-a-new-economic-test-nearly-30-years-after-its-imf-rescue)󠁿

###  󠀁[IMF says AI investment is giving Thailand’s technology supply chain a boost](https://www.thailand-business-news.com/economics/333785-imf-says-ai-investment-is-sustaining-global-growth-giving-thailands-technology-supply-chain-a-boost)󠁿

Companies with fewer than 200 employees will not be subject to the wage increase
for their employees. The Minister of Labour of Thailand concluded by explaining 
the possibility of seeking cooperation from financial institutions to provide low-
interest credit to companies to help maintain their business liquidity and cash 
flow after the increase takes effect.

While some welcome the increase as a means to improve the lives of low-wage workers,
others express concern about its potential negative impact on businesses.

 * **Concerns:** Some businesses worry that the wage hike could lead to job losses
   and higher inflation.
 * **Previous Increases:** In April 2024, the minimum wage was raised by an average
   of 2.4%, with rates ranging from 330 to 370 baht per day.
 * **Government’s Stance:** The Thai government plans to increase the minimum wage
   to 400 baht despite concerns from the business sector.

## Thailand’s labor market development

Thailand’s job market is characterized by a mix of opportunities and challenges.
The country’s unemployment rate has returned to pre-pandemic levels, hovering below
1%, significantly lower than many of its Southeast Asian neighbors. This low unemployment
rate indicates a tight labor market, making it challenging for companies to find
and retain skilled workers.

One of the key trends in 2024 is the heightened competition for top-tier talent.
Companies are increasingly focusing on attracting candidates who align with their
values, particularly in areas such as sustainability and corporate social responsibility.

The demand for roles in environment, social, and governance (ESG), sales and marketing,
and technology sectors is particularly high. As businesses strive to adapt to global
sustainability trends, professionals with expertise in these areas are in high demand.
Additionally, the healthcare, retail, and automotive sectors are actively seeking
skilled professionals to support their growth and development.