Approved minimum wage increase in Thailand

April 26, 2018


The wages council agreed to set a new minimum wage, which came into effect from April 1, 2018. The wage adjustment in 2018 is divided into 7 levels as follows;



Mr. Chakkarin, Permanent Secretary of Ministry of Labour, also made three additional proposals as follows;

  1. Businesses with more than 50 employees must fix employees’ salary structure and guarantee that the wage will be raised every year.
  2. The floating salary rates must be fixed as per the needs of operators in the area. There will be a pilot project in the Eastern Seaboard Economic Zone or EEC which are Chonburi, Rayong and Chachoengsao. This is designed to facilitate workplaces investing in skilled workers.
  3. Prescription of tax incentives for operators who will have incur a higher cost of hiring labor. The rate that can be deducted from tax is 1.5 times

These mentioned proposals must also be re-examined by the new Wages Council.

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