Thailand's Economic Measures

BANGKOK (Reuters) – Thailand's cabinet approved new minimum wage increases starting January, tax breaks to encourage spending, and the second phase of the government's handout scheme, according to Prime Minister Paetongtarn Shinawatra.

Economic Growth Goal

Shinawatra expressed hope for economic growth exceeding 3% next year.

Minimum Wage Increase

The government intends to raise the daily minimum wage to 400 baht ($11.72) nationwide as an economic stimulus. However, the wage committee decided on a 2.9% increase effective January 1, setting the new wage range between 337 baht and 400 baht ($9.9 to $11.7), depending on the region. The higher end applies only to specific provinces: Phuket, Chachoengsao, Chon Buri, and Rayong, along with Samui island.

Tax Breaks and Consumption

The government will offer tax breaks aimed at boosting consumption, although specific details were not provided.

Deputy Finance Minister Julapun Amornvivat announced a tax deduction of up to 50,000 baht based on verified spending (excluding domestic travel), effective from January 16 to February 28.

Handout Scheme Phase Two

Additionally, the cabinet approved the second phase of the handout scheme worth 40 billion baht, targeting four million elderly individuals set to receive payments by January.

The first phase, launched in September, has already distributed 10,000 baht to about 14.5 million recipients, with plans to assist approximately 45 million people overall.

($1 = 34.1300 baht)