Thai cabinet approves minimum wage rise, cash handouts

Bangkok (The Uttam Hindu): hailand's cabinet on Tuesday approved minimum wage increases and the second phase of the government's cash handout programme for senior citizens, Prime Minister Paetongtarn Shinawatra said. The Southeast Asian country's wage committee on Monday agreed to adjust the minimum wage, raising daily wages by an average of two per cent to between 337 and 400 baht (about 9.86 and 11.71 US dollars) depending on the region, effective from January. The highest rate within this range will apply specifically to the popular resort islands of Phuket and Samui, along with provinces in the Eastern Economic Corridor -- Chachoengsao, Chonburi and Rayong. Speaking at a press conference, Paetongtarn said the cabinet approved the second phase of the cash handout programme that would provide around four million citizens aged 60 and above with 10,000 baht (about 292 dollars) each by the end of January.

The first phase of the programme, launched in September, distributed a cash stimulus of 145.5 billion baht (about 4.26 billion dollars) to around 14.55 million underprivileged individuals and people with disabilities, Xinhua news agency reported. Some 36 million Thais have registered for the handout scheme, a key campaign promise of Paetongtarn's ruling Pheu Thai Party. The cabinet also approved a tax deduction of up to 50,000 baht (about 1,464 dollars) for purchases of certain goods and services, aiming to stimulate economic activity and spur consumer spending between January and February, the Prime Minister said. At the same time, Thailand's cabinet on Tuesday acknowledged an agreement to maintain the official inflation target of one per cent to three per cent in 2025, Deputy Finance Minister Julapun Amornvivat said.

Following the agreement reached between the Ministry of Finance and the Bank of Thailand, the government has asked both agencies to maintain an average inflation rate of two per cent to support the ongoing economic recovery, Julapun said after a cabinet meeting. The Southeast Asian country's headline inflation remained below the official target for a sixth consecutive month in November, averaging 0.32 per cent in the first 11 months compared to the same period last year. Last week, the Bank of Thailand's monetary policy committee voted unanimously to hold the benchmark interest rate at 2.25 per cent at its final meeting of 2024. Despite repeated calls from the government to lower borrowing costs in order to shore up a sluggish economy and ease the burden on debtors, the central bank only cut its policy rate once this year.