The Thai Cabinet approved minimum wage increase to 400 baht/day for 4-star hotel employees in 10 tourist provinces, effective April 13.
The Cabinet endorsed the wage committee’s proposal today for an increase in minimum wage, to 400 baht/day, for employees of 4-star hotels in specific areas of 10 tourist provinces, effective April 13.
The 4-star hotels which employ at least 50 employees must be located in Pathumwan and Wattana districts in Bangkok, Ao Nang sub-district in Krabi, Pattaya in Chon Buri, the municipal area of Chiang Mai’s Muang district, Hua Hin in Prachuap Khiri Khan, the Khuekkhak municipal area in Phang-nga’s Takua Pa district, Phuket province, Ban Phe sub-district in Rayong province, the Hat Yai municipal area in Songkhla or Koh Samui in Surat Thani.
Rationale Behind the Decision
The wage committee reasoned that the ten selected provinces generate considerable income from tourism, its decision has gone through a public hearing process, in which all stakeholders were involved, and that both the employers and employees should benefit from tourism business. Some hotels in these areas had, however, voiced objection to the wage increase, claiming that they are not yet ready to bear the increased costs.
Pheu Thai, made significant promises during the 2023 election campaign, stating that Thailand’s minimum wage would rise from 340 baht/day to 600 baht/day by 2027. The initial step in this plan was set to increase to 400 baht in early 2024, but was later adjusted to 360 baht/day with assurances of further increases in the future.
