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Sun Legal Update: Minimum Wage Hike Coming in Sept.

Sun Legal Sunbelt Update

The government is preparing minimum-wage increases in each province, requesting each local government to submit proposed rates.

The process is delayed until September because there were dramatic differences in proposed increases, with some provinces proposing too high a wage while others offered no increase at all.

The central wage committee which consists of representatives of the government, employers and employees will finalize the proposed rates by September with a hope that the new rates will go into effect by the end of this year.

The government has not raised the daily minimum wage in two years and it was agreed that rising costs and inflation necessitate the hike.

Factories, Hotels Exempted From Fees

The Cabinet approved measures to assist factories and hotels by exempting them from paying annual government fees.

Hotel operators normally pay 40 baht a room and will be exempted from this requirement until June 30, 2024. Type 2 factories (which must notify the Ministry of Industry before operation) and Type 3 factories (which must obtain a factory-operation license before starting) are exempted from paying fees to June 9, 2023.

This fee varies from 300-43,500 baht a year, depending on the horsepower of machinery used in the factory.

New Business Registrations Fall 2%

The Department of Business Development reports that the number of new businesses opening in the first half of the year reached 40,301 with combined registered capital of 280.6 billion baht, a 2% year-on-year decline.

The number of businesses filing for closure rose 22% due in large part to higher costs of energy, fuel, electricity and liquified petroleum gas.

Historically, the number of incorporation registrations in the first half of the year has been higher than the number registered in the second half. The DBD forecasts that new business registrations will reach 70,000-75,000 by the end of the year.

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