Bangkok to receive minimum wage increase
Bangkok’s minimum wage will rise to 400 baht per day from July 1, 2025, with similar increases across Thailand’s key tourism venues, as reported by MSN.
Previously, only a few high-tourism provinces such as Phuket, Chon Buri, Rayong, Chachoengsao, and Koh Samui enforced the 400 baht rate. Elsewhere, minimum wages varied between 337 and 380 baht depending on the province.
Outside of Bangkok, the minimum wage increase will also extend to two-star (or higher) hotels with over 50 rooms or restaurants, as well as some entertainment venues.
The new rate marks a significant increase from the current 372 baht in the capital and reflects the government’s move to standardize compensation in more resilient sectors like hospitality and entertainment.
The wage hike is pending cabinet approval and will benefit an estimated 700,000 workers across the country.
Background, Implications, and Concerns
This wage hike fulfills a major campaign pledge by the ruling Pheu Thai Party, which promised in 2023 to establish a nationwide minimum wage of 400 baht by 2025 and to raise it to 600 baht by 2027.
Business groups have voiced concerns over the feasibility of increasing wages for lower-skilled workers, arguing that regional economic disparities make it difficult for small enterprises in lower-income provinces to comply.
The Thai Hotels Association (THA) has submitted a formal petition to Prime Minister Paetongtarn Shinawatra, urging the cabinet to reconsider or delay the wage hike.
La-iad Bungsrithong, an advisor to the THA, stated that five-star hotels in the Northern city of Chiang Mai, where the 400-baht daily minimum wage has already been implemented, have been hit by rising labor costs of 14% compared to the previous year.
Government defends the Increase and Offers Support Measures
To ease this pressure, the Ministry of Labour responded by committing to financial support schemes, including 30 billion baht in soft loans.
The Ministry also responded to accusations that the wage hike was partly intended to compete with Phnom Penh’s recent appeal to Cambodian workers to return home amid border tensions, expressing that the policy is not designed to benefit any particular group.
The decision highlights ongoing tensions between government-led economic reform and the wider business community. While the wage hike is limited in scope for now, it sets the tone for future increases and may pressure the government to develop the policy in phases.
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