The decision, initially expected in April, was postponed during a meeting on Tuesday led by Labour Ministry permanent secretary Boonsong Thapchaiyuth. The board, comprising government, employer, and employee representatives, agreed to delay the proposal amid fears that the US-imposed 36% tariff on Thai imports could significantly impact businesses.
Employer representatives were particularly vocal, warning that many small and medium-sized enterprises (SMEs) are already under pressure. “The current economic environment is not conducive to a wage increase,” said Natthakit Khettrakarn, a spokesperson for the employers’ group, citing rising operational costs and lack of government support since the January wage adjustments.
Although sectors like tourism and services may still afford the hike due to their limited exposure to export tariffs, concerns remain about the broader implications. Labour Minister Phiphat Ratchakitprakarn previously stated that the details of the raise would be finalised in April, but low turnout at recent meetings has pushed deliberations to an unspecified date in May.
The delay has disappointed many workers, who had anticipated a long-overdue wage adjustment. With around 500,000 SMEs potentially affected, the government faces increasing pressure to balance business viability with labour welfare.
