Thailand has raised its minimum wage from Baht 220 to Baht 300 since April 1, 2012. Such a move was aimed at increasing the spending power and to offset the high costs of living in the country. Since the effective date, all workers in Thailand will receive at least Baht 300 or approximately US$9.80 per day which is about 40% increase in certain industry sectors and regions. The new minimum wage has brought Thailand’s monthly wage closer to Malaysia, China and India and triple the amount paid to Vietnamese and Cambodian workers. Multinational companies with operations in Thailand have consulted with Thailand lawyers on how such wage hike affects their workers on minimum wage rate and over minimum wage rate.

Initially, seven Thai provinces implemented the wage hike, namely: Bangkok, Nonthaburi, Samut Prakan, Samut Sakhon, Nakhon Pathom, Pathum Thani and Phuket. To date the following minimum wage rate is implemented as per the Wage Council’s Minimum Wage Rate No. 6 as approved by the Cabinet:

• Baht 300 for Bangkok, Nakorn Pathom, Nonthaburi, Pathum Thani, Phuket, Samut Prakarn, and Samut Sakorn
• Baht 273 for Chonburi
• Baht 269 for Chachoengsao and Saraburi
• Baht 265 for Phranakorn Sri Ayuddhaya
• Baht 264 for Rayong
• Baht 259 for Phang Nga
• Baht 258 for Ranong
• Baht 255 for Nakorn Ratchasima and Prajeenburi
• Baht 254 for Lopburi
• Baht 252 for Kanjanaburi
• Baht 251 for Chiangmai and Ratchaburi
• Baht 250 for Chanthaburi and Petchburi
• Baht 246 for Songkhla and Singburi
• Baht 244 for Trang
• Baht 243 for Nakornsrithammarat and Ang Thong
• Baht 241 for Chumpon, Patthalung, Loei, Satun and Srakaew
• Baht 240 for Prajuabkirikhan, Yala, Samut Songkram and Surat Thani
• Baht 239 for Narathiwat, Udon Thani and Ubon Ratchathani
• Baht 237 for Nakorn Nayok and Pattani
• Baht 236 for Trad, Buengkal, Lampoon and Nong Khai
• Baht 234 for Kamphaengpetch and Uthai Thani
• Baht 233 for Kalasin, Khon Kaen, Chainart and Suphan Buri
• Baht 232 for Chiangrai, Nakorn Sawan, Buriram, Petchaboon, Yasothorn, Roi-ed and Sakon Nakorn
• Baht 230 for Chaiyaphoom, Mukdaharn, Lampang, Sukothai and Nongbualampoo
• Baht 229 for Nakorn Panom
• Baht 227 for Pichit, Phitsanulok, Phrae, Mahasarakham, Mae Hong Son, Amnartcharoen and Utraradit
• Baht 226 for Tak and Surin
• Baht 225 for Nan
• Baht 223 for Srisaket
• Baht 222 for Phayao

Lawyers in Phuket are of the opinion that the increase in minimum wage in Phuket would cause more workers from other regions to look for jobs in the province and it would provide a solution to the current shortage of labor in the job market.

Thailand’s prime minister noted that big manufacturing companies and international companies were already paying their workers more than the mandated new minimum wage rate while small and medium companies that are mostly affected by the policy will be assisted by the government through some measures in support of their adherence to the new wage rate. Corporate lawyers in Phuket have advised many companies they provide services to, on complying with the new labor regulation in order to avoid any conflict with the government and the law especially with the stern warning announced by the chief of Phuket Provincial Labor Protection and Welfare Office on any business found violating the new minimum wage rate.

The chief issued warnings to specific employers who were found to be paying their workers less than the Baht 300 minimum daily wage and gave them 30 days to take corrective actions and start paying workers the new minimum wage. A police complaint will be filed against violators and if found guilty, the employers would face a fine of up to Baht 100,000 or a sentence of up to 6 months jail time, or both.