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

Subscribe to Updates

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 Professionals

Practices

Employment

Location

RELATED INSIGHTS​ 

March 27, 2020
Due to the economic impact of COVID-19, the Board of the Social Security Office has agreed to reduce the rate for both employee and employer contributions to the Social Security Fund.On March 23, 2020, it was announced that there would be a reduction from a 5% contribution to a 4% contribution, for both employees and employers, for a period of six months, commencing in March and ending in August.
Read More
March 27, 2020
On March 4, 2020, the Government of Vietnam issued Decree No. 28/2020/ND-CP Providing Regulations on Administrative Penalties in the Areas of Labor, Social Insurance, and Sending Vietnamese Workers Abroad for Working Under Contract (“Decree 28”). Decree 28 contains 57 articles geared toward protecting Vietnamese workers, including outsourced workers.Decree 28 sets out a number of infractions which employers should be careful to avoid committing and which can result in severe penalties.
Read More
March 27, 2020
The adverse impacts of the COVID-19 pandemic have led employers to look for ways to mitigate the losses being wrought by the turmoil. While working remotely from home is a viable option for some, economic slowdown or to the nature of some industries make it unfeasible for others.This article considers the legality of some measures to mitigate employment costs in Laos.Can an employer suspend an employment contract?
Read More
March 25, 2020
As Thailand, and the world, face the growing COVID-19 crisis, the impact has begun to spread beyond people’s health and into the economy as a whole. While some businesses may be able to move to remote working practices to minimize economic distress, others may require a physical presence that becomes difficult or impossible to maintain, or may face substantial changes to their operations, resulting in hardship or emergency measures.
Read More