The cabinet's resolution to raise daily minimum wages by 5.02% in October is not good news to all businesses though the rise is aimed to relieve workers' financial burden.
The new wages, ranging from 328 to 354 baht, took effect sooner than the original schedule of Jan 1, 2023.
The decision was believed to stem from a political ploy to win "big groups of voters" in the upcoming general election, but the increase is acceptable as it corresponds with inflation, said Tanit Sorat, vice-chairman of the Employers' Confederation of Thai Trade and Industry.
The Commerce Ministry expects inflation to range from 5.5-6.5% in 2022.
Around 10 million workers should benefit from the wage hike, said Sanan Angubolkul, chairman of the Thai Chamber of Commerce, adding it is the right time to increase the wages after a three-year freeze.
Maybank Securities expects the retail and financial sectors to benefit from higher purchasing power and lower credit risk outlook among lower-income customers.
Asia Plus Securities (ASPS) research said industries negatively affected are those with a high labour cost structure including construction, agro-food, developers, auto parts and retail businesses.
In the construction sector, every 1% increase in the minimum wage will affect the cost of construction by 0.10-0.15%, according to ASPS research.
