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

April 12, 2024

Thailand Sets New Minimum Wage for Certain Hotels

On April 10, 2024, new minimum wage rates for workers in certain hotels in Thailand were published in the Government Gazette, taking effect on April 13, 2024.

Under the Notification of the National Wage Committee on Minimum Wage Rate for the Hotel Industry, the new minimum wage rate is THB 400 per day, applicable to employees working in four-star (and above) hotels that have at least 50 employees and are located in the following specific areas:

  • Bangkok: Pathumwan and Wattana districts
  • Krabi: Ao Nang Subdistrict Administrative Organization areas
  • Chon Buri: Pattaya city
  • Chiang Mai: Chiang Mai municipality
  • Prachuap Khiri Khan: Hua Hin municipality
  • Phang-nga: Khukkhak sub-district municipality
  • Phuket: Whole province
  • Rayong: Phe subdistrict
  • Songkhla: Hat Yai municipality
  • Surat Thani: Koh Samui municipality

Rationale

The increase in the minimum wage is to drive and stimulate the economy in Thailand’s tourism industry, which is critical to the overall economy of the country. The ten areas identified above are those that earn a significant portion of their revenue from tourism.

The decision underwent a public hearing process involving stakeholders. Although there were objections from some hotels claiming they were not yet ready to bear the increased costs, the law was enacted, taking effect on April 13, 2024.

For more information on Thailand’s minimum wage regulations, or on any aspect of employment law in Thailand, please contact Pimvimol (June) Vipamaneerut at [email protected], Ketnut Pukahuta at [email protected], Dusita Khanijou at [email protected], or Chomanut Arif at [email protected].

RELATED INSIGHTS​ 

September 6, 2018
Investment by Thai companies in Vietnam is surging over recent years, especially after several major M&A deals in the last few years in the beverage, retail and other sectors. However, Thai companies, as well as all foreign investors in Vietnam, should be aware of some common pitfalls in regard to Vietnamese employment law.Termination of Employees
August 7, 2018
Lao P.D.R. has long been a high-potential destination for foreign investors due to its abundant natural resources and strategic location. As the number of legal entities increased, the number of labor disputes have also rose accordingly. In the past, companies sometimes faced issues over the uncertain legal framework for resolving labor disputes.
August 6, 2018
On July 11, 2018, Cambodia passed an amendment to the Labor Law that eliminates “indemnity for dismissal”—a local legal concept equivalent to a severance payment—for undetermined duration contracts (i.e., employment contracts without a fixed expiration date), and replaces it with an ongoing requirement for employers to pay employees a new “seniority payment.” These amendments affect undetermined duration contracts, and may also affect fixed-term contracts (i.e., employment contracts with a fixed expiration date).
July 19, 2018
Tilleke & Gibbins has contributed to the 2018 edition of the Employment and Employee Benefits Global Guide, a Practical Law Company publication that provides an overview of employment and employee benefits in 30 jurisdictions worldwide. The Myanmar chapter of the guide was written by members of Tilleke & Gibbins’ Yangon office, including Yuwadee Thean-ngarm, director, Nwe Oo, attorney-at-law, and Sher Hann Chua, consultant.