New Minimum Wages in Thailand by Tilleke&Gibbins
On August 26, 2022, Thailand’s National Wage Committee voted to raise the minimum wage to Baht 328 – 354 per day (USD 9.01 – 9.72) — an increase of approximately 5% from the previous range of Baht 313 – 336. The decision to boost minimum wages, which were last increased in January 2020, came after a 14-year-high headline inflation rate of 7.61% in July 2022.
The new minimum wages have been submitted to the cabinet for final approval and are expected to take effect on October 1, 2022, following publication in the Government Gazette. The exact minimum wage depends on the province in which the workplace is located, as shown in the table below.
These minimum rates are for one working day, which consists of eight hours for normal work, or seven hours for work that may be harmful to the health and safety of the employee.
Legal Requirements
After the new minimum wages are announced in the Government Gazette, employers may not pay employees wages below the prescribed rates. Violations are punishable by imprisonment for up to six months, a fine of up to Baht 100,000 or both.
Regarding the question of whether employers can reduce the working hours in order to pay less than minimum wages (e.g., a prorated amount), based on past practice, the National Wage Committee’s announcement is expected to provide that a “day” refers to an employee’s normal working day, regardless of whether it is shorter than the “normal working hours” set by the employer under the Labor Protection Act.
For example, an employee in Bangkok who earns the current minimum wage of Baht 331 per day for normal working hours of eight hours a day would still be entitled to the full new rate of Baht 353 per day in October 2022, even if the employer reduces the working hours.
For further information on Thailand’s minimum wage regulations or on any aspect of employment law in Thailand, please contact Tilleke & Gibbins, a corporate member of the Thai-Norwegian Chamber of Commerce, at [email protected] or +66 2056 5555.
About Tilleke & Gibbins
Tilleke & Gibbins is a leading Southeast Asian regional law firm with over 190 lawyers and consultants practising in Cambodia, Indonesia, Laos, Myanmar, Thailand, and Vietnam. We provide full-service legal solutions to the top investors and high-growth companies that drive economic expansion in Asia. Established in Bangkok in 1890, we have since grown into the largest independent law firm in Thailand and a leading international firm across Southeast Asia due to our commercial focus, local knowledge, and extraordinary service.
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