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​ 

July 7, 2025
On June 20, 2025, Cambodia’s Ministry of Economy and Finance issued Instruction No. 19116 to clarify when board members and company directors must receive salaries and pay payroll taxes. Board members and company directors who are not considered employees are subject to a withholding tax. This category consists of people who complete services for a nonresident individual and people who perform independent work for a company in Cambodia. Board members and company directors who are considered employees, including those appointed by a foreign head office to temporarily manage a company in Cambodia, must pay payroll taxes on any salary they receive, regardless of whether they are paid by a local or foreign branch of the company. The above obligations apply regardless of whether the person has a work permit. Board members and company directors are exempt from paying payroll tax if they: Are not present and not performing a regular management role at the company despite being registered on the company’s statutes or patent tax card; Participate only in board meetings and occasional shareholder meetings; and Do not receive a salary from a company in Cambodia. Overall, this instruction provides an important clarification regarding the tax obligations of board members and company directors. Companies should pay attention to the classification of their board members and directors and be mindful of the exemption.   This article was written with the assistance of Tilleke & Gibbins interns Amelia Gemma Erickson and Amrin Keat.
Read More
July 7, 2025
On June 27, 2025, Thailand issued the new Ministerial Regulation Prescribing the Criteria and Rates for Receiving Unemployment Benefits (No. 2) B.E. 2568 (2025), which amended a similarly named ministerial regulation by boosting the rate of social security benefits to alleviate hardships for employees who are terminated. The new ministerial regulation took effect the following day. Under this new ministerial regulation, eligible terminated employees are entitled to receive unemployment benefits under the Social Security Fund (SSF) for a maximum of 180 days per year, at the rate of 60% of the employee’s monthly wages at the time of termination, up from 50% previously. However, the maximum wage used as the basis for calculating the benefit remains capped at THB 15,000 per month. Therefore, the maximum unemployment benefit that an employee can receive from the SSF is now THB 9,000 (up from THB 7,500) per month for a period of up to six months. To qualify for the unemployment benefits from the SSF, employees must be registered with the Social Security Office and must have contributed to the SSF for at least six months within the 15 months prior to the start date of the relevant unemployment period. This new ministerial regulation was enacted to increase the amount of financial support provided to insured persons in the case of termination, as part of the government’s objective of alleviating economic hardship under current economic and social conditions in Thailand. For more details on unemployment benefits in Thailand, or on any aspect of employment law in the country, please contact Pimvimol (June) Vipamaneerut at [email protected], Dusita Khanijou at [email protected], Ketnut Pukahuta at [email protected], or Chomanut Arif at [email protected].
Read More
July 4, 2025
On July 1, 2025, new minimum daily wage rates for Bangkok and certain business types nationwide were published in the Government Gazette, taking effect on the same day. The daily minimum wage rate for Bangkok has been increased to THB 400 per day, while the minimum wage rates for other provinces remain unchanged from the rates that took effect on January 1, 2025. However, daily minimum wage rates have also been increased to THB 400 nationwide for type 2, type 3, and type 4 hotels under the Hotel Act and for entertainment establishments under the Entertainment Place Act. This THB 400 rate applies to all businesses that meet the criteria, even if the province’s general rate is lower. The new minimum wage rates supersede any lower wages agreed upon in existing employment contracts or conditions of employment that were in force before this announcement came into effect. As a result, these employees must be paid their wages at the newly prescribed rate for work performed from July 1, 2025, onward.
Read More
June 30, 2025
On March 4, 2025, Cambodia’s Ministry of Labor and Vocational Training (MLVT) issued Prakas No. 073/25 on Procedures for Resolving Individual Labor Disputes, replacing Prakas No. 318 on the same topic from 2001 and introducing significant changes to how individual labor disputes are filed, processed, and escalated. In addition, Prakas No. 073 outlines the roles and responsibilities of labor inspectors, the process for filing and handling complaints, and the steps for conciliation and further legal recourse, as described below. Filing a Complaint Any party to an individual labor dispute can file a complaint with the Labor Dispute Department of the MLVT or the Department of Labor at the capital or provincial level. Upon receiving a complaint, a labor inspector will review the case and may initiate either conciliation or a labor inspection. Invitation letters will be issued to the disputing parties to provide relevant information and documents. Conciliation Process Prakas No. 073 places strong emphasis on the conciliation process, introducing strict procedural rules and deadlines with clear consequences for noncompliance: If the claimant fails to provide required information within the specified deadline (or within three working days thereafter without reasonable excuse), the complaint is deemed void. If the respondent fails to attend the conciliation meeting within the deadline (or within three working days thereafter without reasonable excuse), the conciliation is considered unsuccessful, and the respondent is deemed guilty as claimed. Once all necessary information is gathered, a labor inspector will invite both parties to a joint conciliation meeting, which must be held within three weeks of the complaint being received. If the claimant fails to attend the meeting or sign the minutes without a reasonable excuse, the complaint is void. If the respondent fails to attend the meeting without a reasonable excuse, the conciliation is unsuccessful, and the respondent
Read More