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New Minimum Wage Rates in Thailand
The Thai National Wage Committee recently approved a resolution to set new rates for minimum wage in Thailand, to be effective on 1 January 2017. The Notification of the National Wage Committee on Minimum Wage Rate No. 8 (the "Notification") increases the general minimum wage rates between Baht 5 to Baht 10 per day in 69 provinces and retains the rate of Baht 300 per day in eight provinces.
Below, we describe the new minimum wage rates for 2017 by dividing the provinces into four groups.
Minimum Group Wage Rate
Number of Provinces
Chumphon, Trang, Nakhon Si Thammarat, Narathiwat, Pattani, Yala, Ranong and Singburi
Kanchanaburi, Kalasin, Kamphaengphet, Chanthaburi, Chainat, Chaiyaphum, Chiang Rai, Trat, Tak, Nakhon Nayok, Nakhon Phanom, Nakhon Sawan, Nan, Bueng Kan, Buriram, Prachuap Khiri Khan, Phayao, Phattalung, Phichit, Phitsanulok, Phetchaburi, Phetchabun, Phrae, Maha Sarakham, Mukdahan, Mae Hong Son, Yasothon, Roi Et, Ratchaburi, Lopburi, Lampang, Lamphun, Loei, Sisaket, Sakon Nakhon, Satun, Samut Songkhram, Sa Kaeo, Sukhothai, Suphan Buri, Surin, Nong Khai, Nong Bua Lamphu, Ang Thong, Amnat Charoen, Udon Thani, Uttaradit, Uthai Thani and Ubon Ratchathani.
Krabi, Khon Kaen, Chachoengsao, Chonburi, Chiang Mai, Nakhon Ratchasima, Prachinburi, Phra Nakhon Si Ayutthaya, Phang Nga,
Rayong, Songkhla, Saraburi and Surat Thani
Bangkok, Nakhon Pathom, Nonthaburi, Pathum Thani, Phuket, Samut Prakan and Samut Sakhon
In addition to the new general minimum wage, the Thai National Wage Committee has approved a resolution to set minimum wage rates for 12 professional branches of three industry groups based on skills standards under the law governing skill development promotion. These new minimum wages are in addition to the new minimum wages for other industry groups, such as the electronics, automobile and logistics industry, which have been effective since August 2016. The Notification of the National Wage Committee on Wage Rate According to Skills Standards No. 6 (the "Skilled Workers Notification") will be effective 90 days after its publication in the Royal Gazette. It is anticipated that the Notification will take effect by the end of the first quarter of 2017. The new minimum wage rates for the 12 professional branches range from Baht 370 to Baht 600. To be qualified for the new minimum wage criteria, skilled workers must meet the prescribed criteria, including:
having passed professional skills standards tests;
having obtained relevant certificates from the relevant authorities; and
being employed to work in positions that require usage of such skills, either entirely or partly.
The three industry groups required to comply with the new minimum wage rates are:
1. Mechanical and metallurgical industry, e.g. mechanical drawing technician, hydraulic systems technician and tungsten inert gas welding technician for mechanical and metallurgical industry;
2. Air conditioner and refrigeration industry, e.g. large-sized air conditioner technician and small-sized cold storage technician; and
3. Tool and die industry, e.g. electrical discharge machine technician and wirecut electrical discharge machine technician.
The wage rates of the 12 professional branches under these industry groups are classified into two levels according to the required skills and level of experience of the employees. Level 2 employees will be entitled to a higher wage rate than level 1 employees, due to higher levels of skills and experience in working in that professional branch.
For further information, please contact:
Suriyong Tungsuwan +66 2636 2000 ext. 4112 suriyong.tungsuwan @bakermckenzie.com
Nam-Ake Lekfuangfu +66 2636 2000 ext. 4112 nam-ake.lekfuangfu @bakermckenzie.com
Theeranit Pongpanarat +66 2636 2000 ext. 4112 theeranit.pongpanarat @bakermckenzie.com
Employers of the employees entitled to the new minimum wage under the Notification and the Skill Workers Notification will be legally required to pay wages at least at the specified rates per day. The new rates must be complied with regardless of how many hours the employees work per day. For example, if the employee works for only four hours per day, he or she is still entitled to the same minimum wage as another person who works seven hours per day. Failure to pay wages in accordance with either of the notifications may subject employers to criminal penalties, including an imprisonment of up to six months or a fine of up to Baht 100,000, or both.
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