Raising the daily minimum wage to 400 baht will add pressure to struggling Thai restaurateurs, says the Thai Restaurant Association.
On Tuesday, the national wage committee agreed to increase the daily minimum wage to 400 baht for all workers in Bangkok from July 1.
The 400-baht minimum daily rate also applies to workers in most hotels and entertainment venues nationwide.
The current minimum wage for Bangkok is 372 per day.
Thaniwan Kulmongkol, president of the Thai Restaurant Association, said the wage hike will intensify the challenge for a struggling industry.
In general, restaurant operators already pay more than the minimum wage to attract workers, especially Thais, she said. Only a few unskilled positions are still paid the minimum wage.
Raising the minimum wage to 400 baht a day would benefit some non-skilled foreigners working at restaurants, said Ms Thaniwan.
Once the minimum wage is raised, workers earning slightly above that threshold may start demanding even higher pay, leading to a wage increase for all positions in the restaurant sector, she said.
"We need better understanding and communication between restaurant owners and their staff as the industry is going through difficult times," said Ms Thaniwan.
Suthiphon Somvasoon, owner of Kaotom Thewet, a restaurant in Phra Nakhon, Bangkok, confirmed that the Thai restaurant industry is facing labour shortages. Typically Thais do not want to work in the restaurant sector.
He believes that foreign workers could replace Thais in most positions in his restaurant, but some management-level and chef positions still require Thai nationals, he added.
When it comes to his restaurant, all of the staff are currently getting paid a rate higher than 400 baht a day. Only certain inexperienced, newly hired members of staff would receive the legal minimum wage during the early months of their career.
He added that the restaurant also provides staff with three meals a day and accommodation in an effort to attract workers.
With the current economic downturn affecting the country, the staff members recognise the realities of the business environment, he said.
He said amid these circumstances, and considering they are already earning over 400 baht a day, he will not be further increasing the daily minimum wage.
"This wage hike is brutal on restaurants, especially in the current economic climate. We're already struggling with the rising cost of raw materials. With this increase, restaurants may be forced to raise their prices," he said.
He suggested the government introduce any forms of economic stimulus measures to attract foreign tourists.
The government must create a better experience for tourists, such as cracking down on overcharging by taxis and tuk-tuks, he noted.