The Finance Ministry is to propose that the minimum daily wage be raised by up to Bt10. If approved, the minimum wage in Bangkok and its adjacent provinces could rise to Bt194, with the level set in each province differing in accordance with living costs.

A source yesterday revealed the Finance Ministry drew up the proposal because of increased inflation.

The Labour Ministry's inspector general Pornchai Yooprayong, of the Central Wage Committee (CWC) said the Finance Ministry could present the proposal.

Now the CWC, which comprises representatives from the government, employers and employees, will determine whether the proposal goes ahead.

The proposal drew heavy criticism from employers who are struggling in the face of rising oil prices and interest rates.

"A minimum wage increase will add to our woes and force us to sack staff," said Sompong Nakhonsri, the honorary adviser to the Employers' Confederation of Thai Trade and Industry.

He asked if the proposal was just another populist policy to win votes.

Sompong said a pay rise was inappropriate because the minimum wage rose by Bt9 late last year.

Suwit Darasitch, an employer representative on the CWC, said bosses from all sectors were opposed to a wage increase, which might force small businesses to shut down.

He said the CWC would convene on July 13. "We expect to consider the Finance Ministry's proposal and the views of employers and workers," he said.

Santi Wilassakdanont, who chairs the Federation of Thai Industries, said all parties should find a solution to allow employers and staff to survive.

"If a rise is necessary, we should find an appropriate rate for each province. The government should help employers too through tax benefits because they face rising production costs," he said.