Bangkok, June 2025 – The Thai government is moving forward with a targeted Thailand Minimum Wage increase, aiming to improve income levels for workers in key economic sectors.
Beginning July 1, 2025, the minimum daily wage will rise to 400 baht (approximately USD 12.21) for workers in the Bangkok Metropolitan Region, as well as in hotels, restaurants, and entertainment venues across Thailand.
This follows the latest resolution by the National Wage Committee, which had postponed its decision in a previous meeting due to a lack of quorum. In this round, the Committee approved the increase with a two-thirds majority.
Who Will Be Affected By The Thailand Minimum Wage Increase?
The 400-baht minimum wage will apply to:
- All workers in Bangkok
- Workers in hotels rated two stars or higher or with 50 rooms and above, nationwide
- Workers in entertainment and service venues across Thailand
- Specific tourism-focused provinces such as Phuket, Chiang Mai, Chonburi, Rayong, and Koh Samui
The decision is expected to benefit around 700,000 workers, particularly those in the tourism and service sectors, which the Committee considers less negatively impacted by wage increases.
Why This Wage Adjustment?
The National Wage Committee—a tripartite body made up of representatives from the Ministry of Labour, employer organizations, and employee unions—based its decision on a range of factors:
- Rising cost of living
- Inflation trends
- Recovery of key sectors after the COVID-19 pandemic
- The need to reduce income inequality
The wage increase is part of a broader government policy to improve living standards and boost economic equity, especially in sectors that significantly contribute to the national economy.
Is This a Nationwide Policy?
Not yet. The government has stated this is a targeted sectoral increase, not a blanket national wage. Broader changes may come in late 2025, following further assessments.
The 400-baht minimum wage was already piloted in early 2025 in the following areas:
- Phuket
- Chachoengsao
- Chonburi
- Rayong
- Koh Samui District, Surat Thani
These areas were chosen due to their status as tourism hotspots or part of the Eastern Economic Corridor (EEC).
Support for Small Businesses
To help employers manage the wage hike:
- The Ministry of Labour has announced a 30-billion baht soft loan package to be distributed through six commercial banks, aimed at supporting small and medium-sized enterprises (SMEs) facing short-term liquidity issues.
- The Ministry will also provide wage compliance guidelines, especially for businesses in the hospitality and restaurant sectors, to ensure a smooth transition.
Outlook: Balancing Challenges with Opportunities
| Stakeholder | Challenge | Opportunity |
| Employers | Adjusting payroll budgets and pricing | Better staff retention, improved service |
| Workers | Adapting in high-cost areas | Higher income and living standards |
| Government | Ensuring compliance and business support | Greater income equality and domestic spending |
This wage adjustment represents a major step in Thailand’s labor reform efforts, aiming to raise living standards while supporting business resilience. The results of the upcoming Cabinet review will determine how the policy unfolds and whether a nationwide rollout follows later this year.
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FAQs on Thailand’s Increase to the Minimum Wage 2025
When will the new Thailand minimum wage rates take effect?
The new Thailand minimum wage rates are set to take effect on January 1, 2025. This adjustment aims to reflect the ongoing changes in living costs and economic conditions across all provinces.
How much is the daily minimum wage in Bangkok?
As of 2024, the daily minimum wage in Bangkok is 400 baht per day. This rate is designed to help workers cope with the high living costs in the capital city and its surrounding areas.
What are the Thailand minimum wage adjustments for southern provinces like Narathiwat?
In southern provinces such as Narathiwat and Songkhla, the minimum wage rates are typically lower than in Bangkok, with adjustments made to reflect local economic conditions. The rates in these regions may be around 372 baht to 380 baht per day.
Is there a difference in minimum wage rates across all provinces?
Yes, there is a significant difference in Thailand minimum wage rates across all provinces in Thailand. For instance, while Bangkok has a rate of 400 baht per day, provinces like Chon Buri and Ayutthaya have varying rates depending on local economic and living conditions.
How does the government determine the minimum wage rate?
The government determines the minimum wage rate based on a combination of factors, including economic conditions, living costs, and consultations with labor unions and business associations. This process aims to ensure a fair standard of living for workers across different provinces.
What impact will the new Thailand minimum wage have on workers in Chiang Mai?
The new Thailand minimum wage, expected to increase to 400 baht per day in 2025, will significantly impact workers in Chiang Mai and surrounding areas by helping them manage the high living costs while maintaining a reasonable standard of living.
Are there any exceptions to the minimum wage policy?
Yes, certain sectors, particularly entertainment venues nationwide, may have different wage structures due to their unique business models and operational costs. However, the minimum wage policy aims to provide a baseline for all workers across various industries.