The extra income from gratuity or service charges that business establishments give to its employees could not be included in the Baht 300 daily minimum wage. Because it was money from customers and not from the employer, service charges are considered as welfare under the Labor Relations Act.
However, if any employer insists on including the service charge, he must discuss it with the workers first. In case both sides could not agree, Labor Court of Thailand will mediate to resolve any employment change issues. The Supreme Court has also ruled that an employer could keep 22% of the service charge for workers’ welfare and share the rest among the staff.
Contact Thailawyers for consultation on Thailand Labor Law. We are part of MSNA Group helping foreigners doing business in Thailand.