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20 May 2024

Thai Economy

Nationwide minimum wage hike to THB 400 would raise inflation and labor costs (Current Issue No.3496 Full Ed.)

คะแนนเฉลี่ย

A minimum wage hike to THB 400 per day may increase the inflation rate by 0.1% and average labor costs by 6%.
  • If the daily minimum wage is increased to THB 400 nationwide from October 2024, it is expected to impact labor costs of businesses, employment and investment, which could lead to rising inflation. Meanwhile, any positive impact on spending among workers earning higher wages may be limited in scope.
  • The wage hike would increase costs for labor-intensive industries, particularly those with a high share of employees receiving wages based on minimum rates, such as agriculture, domestic work, and accommodation and food services.

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Thai Economy