On April 10, new minimum wage rates for workers in certain hotels in Thailand were published in the Government Gazette, and took effect on April 13.
Under the Notification of the National Wage Committee on Minimum Wage Rate for the Hotel Industry, the new minimum wage rate is THB 400 per day, applicable to employees working in four-star (and above) hotels that have at least 50 employees and are located in the following specific areas:
- Bangkok: Pathumwan and Wattana districts.
- Krabi: Ao Nang subdistrict administrative organization areas.
- Chon Buri: Pattaya city.
- Chiang Mai: Chiang Mai municipality.
- Prachuap Khiri Khan: Hua Hin municipality.
- Phang-nga: Khukkhak subdistrict municipality.
- Phuket: Whole province.
- Rayong: Phe subdistrict.
- Songkhla: Hat Yai municipality.
- Surat Thani: Koh Samui municipality.
Rationale
The increase in the minimum wage is to drive and stimulate the economy in Thailand’s tourism industry, which is critical to the overall economy of the country. The 10 areas identified above are those that earn a significant portion of their revenue from tourism.
The decision underwent a public hearing process involving stakeholders. Although there were objections from some hotels claiming they were not yet ready to bear the increased costs, the law was enacted and has taken effect.
Pimvimol (June) Vipamaneerut, Ketnut Pukahuta and Chomanut Arif are attorneys with Tilleke & Gibbins in Thailand. © 2024 Tilleke & Gibbins. Dusita Khanijou is a consultant with the firm. All rights reserved. Reposted with permission of Lexology.
Was this resource helpful?
Validate your HR expertise
Earning your SHRM-CP credential makes you a recognized expert and leader in the HR field.
Related Content
Transform HR with mobile technology to streamline workflows, enhance communication, and boost employee engagement across distributed teams.
A new study found that talent development practitioners believe performance-based assessments are more effective at measuring employee learning outcomes than knowledge tests.
As AI makes deeper inroads into organizations, employee concerns about the technology continue to grow. Here's how HR leaders can address the fear of AI among their own staff, as well as in the wider organization.