B400 daily wage plan ‘cannot be derailed’

Labour Minister Phiphat Ratchakitprakarn has insisted the 400-baht daily minimum wage must take effect on Oct 1 as planned despite the failure of the national wage committee to endorse it yet.
Sia Champhathong, an MP with the opposition People’s Party, asked the minister on Thursday in the House whether the adjournments of two recent meetings of the committee were the government’s way to avoid addressing the issue,
Mr Phiphat said the matter was out of his control as labour minister. The tripartite committee consists of 15 members from employers, employee groups and the government and is independent.  
“I can neither join the meeting nor sanction its progress,” Mr Phiphat said.
He said that if the Sept 20 meeting had gone ahead, all five representatives from the employers’ group would probably have voted against the pay rise.
Employers generally have been opposed to the idea of a 400-baht minimum wage, and even more to the proposal to make the rate the same nationwide.
The current minimum wage is between 330 and 370 baht depending on the province.
The minister said several agencies are trying to persuade the Bangkok of Thailand to reduce interest rates to help employers manage their costs, which would enable them to pay workers more.
The new daily rate is set to apply to companies or factories with at least 200 workers. Mr Phiphat said studies had shown that the change would result in employers paying about 73 baht more per employee on a daily basis.
The impact would be huge, he said.
Regarding Mr Sia’s concerns about small and medium enterprises being left out of the policy, Mr Phiphat said his ministry would work on increasing minimum wages among smaller employers later, based on reports by provincial wage committees. 
Mr Phiphat also insisted that the government was still committed to a plan to raise the wage to 600 baht by 2027, as it promised during the election campaign in 2023.
It is important to first achieve the 400-baht minimum by October before announcing other plans and timelines, he said.
“However, the wage increase should be in line with the country’s current economic status rather than prioritising a fixed timeline,” he said, adding it is possible the raise may not reach the promised 600-baht goal.
“The ministry is instead focusing on finding solutions for sustainable progress in terms of raising wages and ensuring financial stability for workers,” he said.