BANGKOK (Reuters) – Thailand’s government plans to increase the daily minimum wage to 400 baht ($10.84) from October, a spokesperson said on Thursday, a policy that could help lift consumption in Southeast Asia’s second-largest economy.
A committee will meet this month to assess which industries are prepared for the increase and what assistance could be offered to those that are not ready, spokesperson Chai Wacharonke said.
The government this week cut its growth forecast for 2024 to 2.4% from 2.8%, but said growth could still reach 3.3% if its signature 500 billion baht “digital wallet” handout designed to boost spending is launched in the fourth quarter as expected.
Last year, the government announced an increase in the daily minimum wage of 2.37% to a range of 330 baht to 370 baht, a hike that Prime Minister Srettha Thavisin deemed too low.
The ruling Pheu Thai party campaigned on a promise to bring the minimum wage to 600 baht by 2027.
The previous government increased the minimum wage by 5.02% in 2022.
($1 = 36.8900 baht)