New 400-Baht Minimum Wage to Apply in Bangkok and to Selected Businesses

The minimum wage was one of the key election policies promoted by the Pheu Thai Party, which now controls the Thai government. The policy will raise the minimum wage to 600 Baht per day by 2027, beginning with an initial increase to 400 Baht per day during the government’s first year in office. According to the Wage Committee Notification on Minimum Wage Rates (No. 13), the legal minimum wage in the Bangkok area prior to the recent change was 372 Baht per day – which is also the new rate, as recently adjusted, effective 1 January 2025. 

After prolonged discussions and earlier failures to approve a new wage rate due to objections from certain businesses and employer groups, the Wage Committee finally was able to approve a minimum wage of 400 Baht per day. This is the first step toward achieving the targeted 600 Baht wage rate. However, the new, upcoming minimum wage will apply only in Bangkok and to targeted industries in certain provinces. 

On 17 June 2025, the Permanent Secretary of the Ministry of Labour reported that the Wage Committee finally approved an increase in the minimum daily wage, to 400 Baht. The resolution was adopted by a two-thirds majority vote of the 15-member committee, which is comprised of representatives from employers, employees, and the government. The Wage Committee Notification on Minimum Wage Rates (No. 14) was published in the Royal Gazette on 1 July 2025 and became effective on that date; the new wage rates it implemented are: 

1. Bangkok: A minimum wage of 400 Baht per day is fully implemented across all sectors in Bangkok.
2. Other Provinces: In other provinces, a minimum wage of 400 Baht per day will apply only to specific types of businesses, including:
   1. hotels of types 2, 3 and 4, as defined in the Hotel Act; and
   2. entertainment venues, as defined in the Entertainment Places Act.

Other minimum wage rates remain unchanged by this Notification, and remain at the rates set forth in the Wage Committee Notification on Minimum Wage Rates (No. 13). It is expected that this change will benefit more than 700,000 workers across the country.  

In order to mitigate the impact on employers, the Permanent Secretary of the Ministry of Labour stated that the Ministry of Labour, in collaboration with six state-owned and private banks, has prepared support measures for employers who may be affected by the wage adjustment, and is launching a loan program with total available assets of 30 billion baht to assist businesses during the transition. While this initiative exists to ensure that affected establishments can access funding and adapt smoothly to the new wage structure, concerns remain that the true financial burden of the minimum wage increase will fall upon businesses and employers—potentially pushing them into deeper debt and threatening their long-term sustainability.

Considering the government’s recent directions and policies, we can expect to see ongoing wage adjustments from time to time, and which may impact selected industries at various times until the 600 Baht wage rate is achieved nationwide. 

This Newsletter is intended merely to provide a regulatory overview and is not intended to be comprehensive; it is NOT a provision of legal advice. Should you have any questions on this or on any other areas of law, please do not hesitate to contact the following:

Chanakarn Boonyasith
Partner

Pitchabsorn Whangruammit
Associate

Atthawut Wuvanich
Associate

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