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Daily (not hourly) minimum wages in Thailand are expected to rise to a flat rate of $10 by the end of 2012. This amount is a significant increase from the current range of $5.2 to $7.2.  This is the first time in Thailand that a flat wage rate has been imposed across provinces.  This increase is expected to impact approximately 4 million low-income employees. 

Employers are concerned that implementing the new minimum daily wage will increase production costs.  Many small business owners stated that the price of their products and services would increase as a result of this policy.  This in turn would lead to less business, causing small business owners to lose profits.
In response to these concerns, the Thai Labor Ministry is proposing a series of measures to make the minimum daily wage increase more acceptable to employers.  One proposal is to lower corporate income tax from its current rate of 30% to 23%.  Skill development training will also be arranged for these employees.  This is to assure employers that the employees deserve the higher wage.

There is some debate on the timeline of the implementation of the wage increase.  The Central Wage Committee offered either increasing the minimum wage over two years or more gradually over four years.  Employees rallied in early October to demand an immediate increase.  The Deputy Prime argued that some employers, particularly from the private sector, may need more time to meet the increase.  The government, employers, and labor representatives will debate the proposed timelines on October 17, 2011.