“Thais need to have work with dignity,” Srettha said. — Reuters
BANGKOK: Thailand’s Prime Minister Srettha Thavisin defends a cornerstone policy pledge of his populist government, saying increases to the daily minimum wage would “not be a disaster” for business owners.
His comments came after a wage committee of government officials, labour representatives and businesses agreed to a 2.37% hike in the minimum wage to between 330 baht and 370 baht (US$9.23 to US$10.35) per day, which the prime minister deemed too low.
“This government does not agree with that hike,” Srettha told a business forum, adding that the government has already reduced electricity and energy prices to support businesses.
“Thais need to have work with dignity.”
Srettha’s ruling Pheu Thai party had campaigned on a key populist plank of raising the minimum wage to 400 baht a day.
A previous government had raised the minimum wage by 5.02% in October 2022.
A larger minimum wage hike will be proposed this month, the labour minister said earlier, without giving further details.
Businesses have expressed concern over rising costs and wages as a factor in holding back competitiveness amid sluggish economic growth.
“Businesses will find that wage hike will not be a disaster, but will have a positive effect if done properly,” Srettha said.
The Federation of Thai Industries has warned businesses would have to shoulder the costs of a higher minimum wage alongside higher borrowing costs, which could make Thai companies less competitive.
South-East Asia’s second-largest economy grew much lower-than expected at 1.5% in the July to September quarter from a year earlier, the slowest pace this year, on weak exports and government spending. — Reuters
