Thai Government Endorses Wage Hike and Senior Citizen Cash Assistance
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Bangkok, Dec 24 (NationPress) The Thai cabinet has officially endorsed increases in minimum wages and the second phase of the government's cash handout program directed at senior citizens, as stated by Prime Minister Paetongtarn Shinawatra.
The wage committee of this Southeast Asian nation reached an agreement on Monday to modify the minimum wage, implementing an average increase of two percent which will set daily wages between 337 and 400 baht (approximately 9.86 and 11.71 US dollars), depending on the region, effective from January.
The maximum rate will specifically apply to the popular resort islands of Phuket and Samui, as well as to provinces within the Eastern Economic Corridor—Chachoengsao, Chonburi, and Rayong.
During a press conference, Paetongtarn announced that the cabinet has also ratified the second phase of the cash handout program, which will allocate 10,000 baht (around 292 dollars) to approximately four million citizens aged 60 and above by the end of January.
The initial phase of this program, initiated in September, provided cash assistance totaling 145.5 billion baht (about 4.26 billion dollars) to around 14.55 million underprivileged individuals and people with disabilities, as reported by Xinhua news agency.
Currently, around 36 million Thais have registered for the handout scheme, a significant promise made by Paetongtarn's ruling Pheu Thai Party.
Additionally, the cabinet has approved a tax deduction of up to 50,000 baht (approximately 1,464 dollars) for specific purchases, aimed at enhancing economic activity and increasing consumer spending between January and February, according to the Prime Minister.
Furthermore, the cabinet acknowledged an agreement to preserve the official inflation target between one percent and three percent for the year 2025, as stated by Deputy Finance Minister Julapun Amornvivat.
Following a consensus between the Ministry of Finance and the Bank of Thailand, the government has requested both entities to strive for an average inflation rate of two percent to facilitate ongoing economic recovery, Julapun remarked after the cabinet meeting.
In November, the headline inflation rate in this Southeast Asian country remained below the official target for the sixth consecutive month, averaging 0.32 percent during the first eleven months compared to the same timeframe last year.
Recently, the monetary policy committee of the Bank of Thailand unanimously decided to maintain the benchmark interest rate at 2.25 percent during its final meeting of 2024.
Despite ongoing appeals from the government to lower borrowing costs to bolster a sluggish economy and alleviate the financial strain on debtors, the central bank has only reduced its policy rate once this year.
