The minimum wage for Thais

Thailand, a dynamic country with a fast-growing economy, has a minimum wage system that varies by region and industry. Although the minimum wage in Thailand has seen adjustments over the years, it remains a crucial topic for Thai workers, especially in the agriculture, tourism, and industrial sectors.

In this article, we will explore what the minimum wage is in Thailand, how it is determined, and its impact on workers and the economy.

The minimum wage in Thailand

1. An important regional difference

In Thailand, the minimum wage is not the same throughout the country. The Thai government has implemented a system where minimum wages vary by region. Minimum wages in major cities like Bangkok are higher than in rural areas.

Here’s a look at minimum wages in 2021:

• Bangkok and major cities : about 325 to 336 baht per day.
• Rural areas : about 313 to 320 baht per day.

These wages are calculated based on an 8-hour workday, which is about 9,000 to 10,000 baht per month for a full-time worker.

2. The sectors concerned

Workers in certain sectors are particularly affected by the minimum wage. This mainly concerns:

• Agriculture : A large part of the Thai population works in agriculture, and wages are generally lower.
• The tourism sector : Many employees in hotels, restaurants and transport services are paid minimum wage.
• Industry : Workers in factories and manufacturing companies also receive wages close to the minimum.

The Impact of the Minimum Wage

1. The cost of living

While the minimum wage in Thailand is enough to live modestly, it can be difficult to support a family in the big cities. The cost of living in Bangkok or Pattaya can be quite high, especially when it comes to accommodation, food, and transportation.

Minimum wage workers often face financial hardship, especially when they have dependent children or family members.

2. Salary increases

The minimum wage is reviewed annually by the Minimum Wage Council of Thailand, but these revisions are often modest. Although the Thai government has raised minimum wages in recent years, the increases are often deemed insufficient to keep up with inflation and the rising cost of living.

Challenges for Thai workers

1. Wage inequality

Another issue related to the minimum wage is wage inequalities between sectors and regions. Skilled workers or those in positions in large companies can often earn much more than the minimum wage, while unskilled workers or those in the informal sectors remain at the bottom of the ladder.

2. Informal work

A large part of the population works in informal sectors or undeclared jobs, where wages can be much lower than the official minimum wage. This mainly concerns domestic workers, construction workers, and other temporary or seasonal jobs.

Conclusion

The minimum wage in Thailand remains a subject of debate and improvement for many workers, especially in the lowest-paid sectors. While annual minimum wage revisions offer relief to some workers, they are often seen as insufficient to meet the country’s economic challenges.

For expats and employers, it is essential to understand the impact of these minimum wages on Thai workers and to remain aware of the inequalities that still exist in certain regions and sectors.