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

February 3, 2017

Thailand Introduces New Minimum Wage Rates for 2017

Subscribe to Updates
Bangkok Post, Corporate Counsellor Column

The minimum wage in Thailand has been driven—both theoretically and historically—by the cost of living, inflation, and work efficiency, which often vary from province to province.

The government, through the Ministry of Interior, first passed legal measures to regulate the minimum wage for workers in Thailand in 1972. Consideration was made to the cost of living, standard of living, cost of goods production, business capacity, and the economic and social conditions applicable to specific local geographical areas.

Minimum Wage Rate

In 1998, the term “Minimum Wage Rate” was included in the definition section of the Labor Protection Act for the first time. Section 5 of the Act defines “Minimum Wage Rate” as the minimum rate of wages determined by the Wage Committee under this Act.

While a formal legal definition of Minimum Wage Rate has not yet been set, the Wage Committee in 2016 applied the rationale of “a sufficient wage rate for a worker to develop skills to enable such worker to have a livelihood that is appropriate to his or her economic and social conditions, and to have a standard of living that matches with local business capacity” to determine the applicable minimum wage rate, pursuant to the explanatory notes to the Notice of the Wage Committee titled “Minimum Wage Rate (No. 8).” The term “per day” means seven hours for work that endangers the health and safety of employees, and eight hours for all other work.

The national minimum wage rate that was established in 2013, whereby all workers would be granted a uniform wage rate of THB 300 (approximately USD 8.50) per day regardless of the province in which they were employed, came to an end earlier this year.

Provincial Variation

According to the “Minimum Wage Rate (No. 8)” Notice, which came into effect on January 1, 2017, Thailand’s minimum wage system will now vary from province to province, similar to the pre-2013 national minimum wage system. The main reason behind the change was to support the standard of living of workers residing in major cities, such as Bangkok, where the cost of living is comparatively higher. The 2017 minimum wage rate system has been adjusted to match the cost of living, inflation, and work efficiency in each individual province. This marks the first minimum wage adjustments since 2013.

The table shows the minimum wage rates applicable to each province. An employer is prohibited from paying a wage that is lower than these minimum wages to an employee.

Skilled Labor

In accordance with the National Wage Committee’s Notification on Wage Rates for Skilled Workers According to Skills Standards (No. 6) on January 24, 2017, “Skilled Workers” are entitled to higher minimum wages, effective April 24, 2017.

For specific professions, the minimum wage rates will range between THB 370 and THB 600 per day, depending on the worker’s skill level. These professions include mechanical drawing technicians, tungsten inert gas (TIG) welders for mechanical and metal work, transmission technicians, hydraulic technicians, cooler and air conditioning pipe welders, large air conditioner technicians, air conditioner assemblers, small cooling room technicians, auto-milling machine technicians, electrical discharge machine (EDM) and wire-cut EDM technicians, and mold polishers.

Penalties for Noncompliance

Employers who fail to pay the minimum wage rates prescribed under the law may face an imprisonment term of up of six months, or a fine not exceeding THB 100,000, or both. It is important for employers to be aware of the relevant minimum legal requirements with regard to wages, and when these will take effect, in order to avoid punishment for failing to fulfill their duties.

Overall, the new minimum wage rates for both unskilled and skilled workers signal the Thai government’s strategy to progressively move the Thai labor force up the value chain. However, it is important that the government also continues to ensure that Thailand maintains the key elements of affordability and price attractiveness in its labor force, particularly within Asean, in order to secure and solidify Thailand’s position as a manufacturing hub and country of choice for investors.

Download Full Article
Related Professionals

Practices

Employment

Location

RELATED INSIGHTS​ 

September 30, 2025
Over the past several years, during and after the COVID-19 pandemic, Thai employees and labor unions have faced reductions in benefits and welfare from their employers. Consequently, they have pursued various strategies to enhance their compensation packages. One such approach involves establishing employee committees to negotiate with employers regarding benefits and welfare. Additionally, companies with existing unions typically nominate representatives to serve on these employee committees. Many employers, however, remain unfamiliar with both the committee’s role and the heightened procedural requirements that apply when disciplinary measures are contemplated against committee members. Because any violation of a committee member’s statutory rights can expose the employer—and its directors or authorized representatives—to criminal liability, a clear understanding of the relevant legal framework is essential. The Labor Relations Act B.E. 2518 (LRA) provides the statutory foundation for establishing employee committees. The purpose of the committee is to promote harmonious industrial relations and create a formal channel through which employees and employers can discuss workplace matters on a regular basis. Any workplace that employs at least fifty employees must, upon request by employees or the labor union, facilitate the creation of a committee. Members may be elected directly by employees or, where applicable, appointed by the labor union. Each member serves a three-year term. The LRA prescribes minimum committee sizes based on the employer’s headcount, as shown in the table below. If union members constitute more than 20 percent of the total workforce, the union must appoint at least one more committee member than the number of nonunion members elected by the general workforce. If union membership exceeds 50 percent of the workforce, the union acquires the exclusive right to appoint every committee member. Where multiple unions exist and their combined appointments would exceed the statutory committee size, the employer may lawfully refuse to
Read More
September 25, 2025
Tilleke & Gibbins’ labor and employment team in Hanoi and Ho Chi Minh City has contributed the Vietnam chapter to Labor and Employment Disputes 2026. Drawing on the expertise of three of the firm’s employment specialists, the chapter provides practical guidance for navigating employment disputes in Vietnam and covers: Pre-action considerations: key requirements, third-party funding, contingency fee arrangements Issuing a claim: forum, territorial jurisdiction, standing, commencing claims, fees, service, defendants and legal personality, types of claims, time limits, counterclaims Case management: procedure, rules, amendments to claims, adding parties, consolidating proceedings, class and collective actions, evidence, witnesses, tactical considerations Interim relief: availability, requirements Trial: hearings conduct and time frames, confidentiality and public access, media reporting, elements of successful claims and burden of proof Alternative dispute resolution: available types, requirements and expectations, enforcement Collective employment and labor rights: enforcement and standing Remedies and enforcement: available remedies, assessing compensation, enforcement mechanisms Appeals: procedure, time frames, other means of challenge Updates and trends: recent cases and developments, technology developments, other issues The Vietnam chapter is available for download below. Tilleke & Gibbins also contributed the Cambodia and Thailand chapters to Labor and Employment Disputes 2026. Readers can also gain 30 days of complementary access to the full Labor and Employment Disputes 2026 guide and the rest of Lexology Panoramic’s varied offerings through this link.
Read More
September 25, 2025
In the Thailand contribution to Labor and Employment Disputes 2026, four members of Tilleke & Gibbins’ Bangkok labor and employment team outline key aspects of dispute resolution in Thailand. Their analysis, part of Lexology Panoramic’s comparative guide covering jurisdictions worldwide, addresses the following areas: Pre-action considerations: key requirements, third-party funding, contingency fee arrangements Issuing a claim: forum, territorial jurisdiction, standing, commencing claims, fees, service, defendants and legal personality, types of claims, time limits, counterclaims Case management: procedure, rules, amendments to claims, adding parties, consolidating proceedings, class and collective actions, evidence, witnesses, tactical considerations Interim relief: availability, requirements Trial: hearings conduct and time frames, confidentiality and public access, media reporting, elements of successful claims and burden of proof Alternative dispute resolution: available types, requirements and expectations, enforcement Collective employment and labor rights: enforcement and standing Remedies and enforcement: available remedies, assessing compensation, enforcement mechanisms Appeals: procedure, time frames, other means of challenge Updates and trends: recent cases and developments, technology developments, other issues The complete Thailand chapter can be downloaded below. Tilleke & Gibbins also contributed the Cambodia and Vietnam chapters to Labor and Employment Disputes 2026. Readers can also gain 30 days of complementary access to the full Labor and Employment Disputes 2026 guide and the rest of Lexology Panoramic’s varied offerings through this link.
Read More
September 25, 2025
Four of Tilleke & Gibbins’ labor and employment specialists in Phnom Penh have authored the Cambodia chapter of Labor and Employment Disputes 2026, the latest edition of Lexology Panoramic’s global guide to handling labor and employment disputes. The chapter provides practical insights on a wide range of dispute resolution issues, including: Pre-action considerations: key requirements, third-party funding, contingency fee arrangements Issuing a claim: forum, territorial jurisdiction, standing, commencing claims, fees, service, defendants and legal personality, types of claims, time limits, counterclaims Case management: procedure, rules, amendments to claims, adding parties, consolidating proceedings, class and collective actions, evidence, witnesses, tactical considerations Interim relief: availability, requirements Trial: hearings conduct and time frames, confidentiality and public access, media reporting, elements of successful claims and burden of proof Alternative dispute resolution: available types, requirements and expectations, enforcement Collective employment and labor rights: enforcement and standing Remedies and enforcement: available remedies, assessing compensation, enforcement mechanisms Appeals: procedure, time frames, other means of challenge Updates and trends: recent cases and developments, technology developments, other issues The full Cambodia chapter is available for download below. Tilleke & Gibbins also contributed the Thailand and Vietnam chapters to Labor and Employment Disputes 2026. Readers can also gain 30 days of complementary access to the full Labor and Employment Disputes 2026 guide and the rest of Lexology Panoramic’s varied offerings through this link.
Read More