Pattaya businesses face another cost challenge as new minimum wage rates take effect
“It’s not just 400 baht a day — it’s the rising costs across the board,” says Jomtien hotel manager as businesses brace for impact. (Photo by Jetsada Homklin)
PATTAYA, Thailand – Local businesses, particularly in the hospitality and nightlife sectors, are bracing for yet another financial strain following the nationwide implementation of new minimum wage rates, which took effect on July 1, 2025.
Under the latest schedule announced in the Royal Gazette and approved by Thailand’s tripartite wage committee, a new daily minimum wage of 400 baht is now mandatory for employees working in Type 2, 3, and 4 hotels and entertainment venues, as well as all business types located in Bangkok, Chachoengsao, Chonburi (including Pattaya), Phuket, Rayong, and Ko Samui district.
For Pattaya’s business owners—already grappling with rising utility costs, fluctuating tourist numbers, and tighter regulatory enforcement—the wage hike is yet another economic headwind. Many small- and medium-sized operators worry that their profit margins, already thin during the rainy low season, may not be sustainable with increased payroll obligations.
“This isn’t just about paying 400 baht per day,” said a Jomtien hotel manager. “It’s about social security, overtime, and bonuses rising alongside it. We want to pay our staff well, but the timing hurts.”
The law mandates strict compliance: employers are prohibited from paying less than the specified minimum wage, with enforcement tied to normal working hours—seven hours for hazardous jobs and eight hours for all others.
In contrast to Chonburi’s 400-baht tier, many provinces across Thailand saw more modest increases. For instance, workers in Chiang Rai and Tak now receive 352 baht, while the southern provinces of Narathiwat, Pattani, and Yala sit at the lowest tier with 337 baht per day.
As Pattaya pushes to revitalize its tourism economy, employers are now under added pressure to absorb rising labor costs while maintaining competitive pricing for domestic and international travelers.
“Higher wages may improve livelihoods, but for businesses already on the edge, it could mean fewer jobs, shorter hours, or closures,” one nightlife operator warned.
With the wage law now in force, all eyes are on how Pattaya’s service economy adapts—and whether government support or adjustments will follow if the burden proves too great.