Thai Minimum Wage Hike Faces Standoff After Minister Resigns

 

Plans to implement a 400-baht increase to Thailand's daily minimum wage on 1st July 2025 are facing significant uncertainty following the unexpected resignation of Phiphat Ratchakitprakarn as Labour Minister. 

 

His departure has left a crucial void, raising doubts over who will formally propose the wage hike to the Cabinet next week.

 

On Friday, 21st June 2025, Attayut Leeyavanich, an employers' representative on the Tripartite Wage Committee, expressed his concerns. 

 

"The Tripartite Committee has not yet discussed this specific issue," Attayut stated. "However, the standard procedure dictates that once our committee passes a resolution, it must be submitted to the Labour Minister, who then forwards it to the Cabinet for approval and official gazetting before it can become law."

 

He noted that with no Labour Minister in place now, he was unsure whether someone would propose this in the Cabinet meeting on Tuesday, June 24th, or whether any Deputy Prime Minister would bring it up.

 

"I'm still awaiting clarity; it falls to the Permanent Secretary of the Labour Ministry, who chairs the Tripartite Committee," he added. 

 

The situation is further complicated by the fact that Anutin Charnvirakul, the Deputy Prime Minister previously overseeing the Labour Ministry, has also resigned.

 

Attayut indicated that they would await an announcement on who would be appointed as acting minister or which Deputy Prime Minister would assume oversight of the ministry. 

 

 

He noted that if an acting minister is appointed by Tuesday's Cabinet meeting, the Tripartite Committee's resolution could potentially be submitted the following week.

 

 

Industry Bodies Seek Review of Controversial Decision

Adding to the uncertainty,  Attayut revealed that the Federation of Thai Industries and the Thai Chamber of Commerce are reportedly preparing to submit a letter to the Tripartite Committee chairman, urging a reconsideration of the recent minimum wage increase. 

 

This demand for a review is not a direct consequence of the ministerial vacancy, but rather a culmination of ongoing dissatisfaction.

 

"The request for a fresh review stems from the fact that this round of minimum wage considerations has seen continuous demands for reconsideration over the past two to three months," Attayut explained. 

 

He cited instances where the Confederation of Labour Organisations had previously sought a review of the wage rate resolved in December 2024 and implemented on 1st January 2025.

 

This has led to what he described as an "abnormal" situation, with monthly calls for wage reviews, deviating from the usual annual process.

 

"Before the vote for the latest minimum wage increase, there was no proper study, no submission to the sub-committee for wage screening or the provincial wage sub-committees to conduct occupational reports," Attayut asserted. "It seems they simply acted on impulse. This is precisely why the Federation of Thai Industries and the Thai Chamber of Commerce wish to submit a request for a review."
 

 

 

Vote Draws Confusion Amidst Stagnant Economy

When pressed about the specifics of the contentious vote, Attayut confirmed that the latest Tripartite Committee resolution was not unanimous, with the employer's side ultimately outvoted.

 

He recounted that in May, a similar increase was proposed, but representatives from the Commerce Ministry and the Office of the National Economic and Social Development Council (NESDC) voted against it, arguing there were no significant changes to warrant another wage hike.

 

"Yet, in June, despite no significant changes whatsoever – the inflation rate was only 0.22% – the representatives from the Commerce Ministry and NESDC voted in favour, resulting in a 10-to-5 vote that passed the 400-baht wage increase," Attayut expressed his bewilderment. "I'm still puzzled as to why it passed, even though all conditions, including the economic situation, were the same as in May 2025, or even worse."

 

In a recent development, reports confirm that on Friday (June 20th) Prime Minister Paetongtarn Shinawatra signed an order assigning Suriya Juangroongruangkit, a Deputy Prime Minister, to oversee the Labour Ministry, potentially paving the way for the resolution to proceed.