Emmanuel OchayiIn a bid to address income disparities, Thailand’s Prime Minister, Srettha Thavisin, confirmed a scheduled hike in the minimum wage effective January, following an agreement by a wage committee.
However, Thavisin expressed dissatisfaction with the proposed increase of 2.37%, deeming it insufficient.
The ruling Pheu Thai party, emphasizing a populist stance during their campaign, aims to raise the daily minimum wage to 400 baht, sparking concerns over the nation’s competitive edge.
Labour Minister Phipat Ratchakitprakarn announced plans for a further wage review in March, focusing on regional variations and professional sectors eligible for increased wages.
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Presently ranging between 328-354 baht (approximately US$9.49 – US$10.24), the minimum wage is set to shift to 330-370 baht as agreed by the committee.
However, this decision triggers concerns among companies, warning about reduced competitiveness amidst rising borrowing costs and Thailand’s slower economic growth compared to regional counterparts.
Meanwhile, Thailand’s cabinet has greenlit the central bank’s inflation target range for 2024, maintaining it at 1% to 3%, mirroring this year’s parameters.
November reported a -0.44% CPI, marking seven consecutive months of inflation below the target range. Factors contributing to deflationary pressures include government policies reducing energy prices and a decline in meat prices.
According to Reuters, Pornchai Theeravet, spokesperson for the finance ministry, emphasized the reviewed inflation target’s alignment with economic growth, affirming its support for the country’s monetary policy.
The ongoing adjustments in minimum wage and inflation targets reflect Thailand’s attempt to balance income elevation with economic sustainability amidst regional challenges.
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