You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

August 30, 2022

New Minimum Wages in Thailand

On August 26, 2022, Thailand’s National Wage Committee voted to raise the minimum wage to THB 328–354 per day (USD 9.01–9.72)—an increase of approximately 5% from the previous range of THB 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 THB 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 THB 331 per day for normal working hours of eight hours a day would still be entitled to the full new rate of THB 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 at [email protected] or +66 2056 5555.

RELATED INSIGHTS​ 

November 24, 2021
Attorneys from Tilleke & Gibbins have provided the latest update to the Thailand contribution to Doing Business in…, a Q&A-style guide published by Thomson Reuters Practical Law that presents an overview of the legal framework for doing business in 63 jurisdictions worldwide. The Thailand chapter of the guide outlines Thailand’s legal system and key laws applicable to foreign companies doing business in the country. The chapter specifically covers the following main topics: Legal system: Thailand’s court system and codified legal system. Foreign investment: Lists of reserved business activities, restrictions on doing business with certain jurisdictions, exchange controls and currency regulations, and grants and incentives available to investors. Business vehicles: Ordinary partnerships, registered ordinary partnerships, limited partnerships, private limited companies, and public companies. Environment: Main laws and regulations, factory operation. Employment: Laws, employment contract requirements, work permits, and termination and redundancy. Tax: Taxes on employment, tax and nontax resident employees and businesses, corporate income tax, value added tax, special business tax, municipal tax, stamp duty, dividends, interest, intellectual property royalties. Competition: Important aspects of Thailand’s regulatory regime surrounding competition, centered around the updated Trade Competition Act. Antibribery and corruption: Laws, compliance requirements, regulatory authority. Intellectual property: Patents, trademarks, registered and unregistered designs, and copyright. Marketing agreements and advertising: Regulation of marketing agreements, Thailand’s Consumer Protection Act, direct marketing, role of the Consumer Protection Board and Food and Drug Administration. E-commerce: E-commerce laws and regulations, marketing and sales via online platforms. Data protection: An outline of Thailand’s Personal Data Protection Act. Product liability: Procedures and regulations for product liability and product safety, including the Unsafe Goods Liability Act and the Consumer Case Procedure Act. Product liability: Key regulatory authorities for trade competition, environmental issues, and financial services. To browse, download, or print the Thailand chapter, please visit the Practical Law website.
October 25, 2021
Michael Ramirez, a counsel in Tilleke & Gibbins’ dispute resolution group in Bangkok, has updated the firm’s contribution to the Global Attorney-Client Privilege Guide, published by Lex Mundi. The newly expanded guide provides information on what constitutes attorney-client privilege in over 70 countries around the world. The Thailand section of the guide contains in-depth information on the function and applications of attorney-client privilege in Thailand (or, as explained in the guide, an equivalent concept enshrined in Thai law), including coverage of the following topics: Privilege in corporations Common interest doctrine Litigation funding Crime-fraud exception Work product doctrine/litigation privilege Other privileges including mediation, accountant-client and settlement negotiation The interactive guide features expert contributions by Lex Mundi member firms from jurisdictions worldwide. Readers can browse the contributions, generate country-specific reports, and compare attorney-client privilege in multiple jurisdictions. For more information, please visit the Lex Mundi website.
October 14, 2021
As part of its membership in Lex Mundi, Tilleke & Gibbins has published an updated edition of its Guide to Doing Business in Thailand for 2021. This guide outlines all of the key factors for starting and operating a business in the Thai market. Issues covered include: Investment incentives Financial facilities Exchange controls Import and export regulations Structures for doing business Requirements for the Establishment of a Business Operation of the Business Cessation or Termination of the Business Labor legislation, relations, and supply Tax Immigration requirements This publication is part of Lex Mundi’s Guides to Doing Business series prepared by member firms in more than 100 jurisdictions worldwide. The guides serve as a useful resource when planning an international business strategy or researching a new market.
September 13, 2021
Businesses in Vietnam recognize the need to vaccinate their workers in order to keep their factories and workplaces open. In this article, we explore whether employers may require their employees to be vaccinated, as well as associated disclosure and privacy issues under Vietnamese law.