Thai cabinet approves handouts, minimum wage increase and tax breaks, PM says

BANGKOK (Reuters) - Thailand's cabinet on Tuesday approved new minimum wage increases from January, tax breaks to boost spending and the second phase the government's signature handout scheme, the prime minister said.

Paetongtarn Shinawatra also told reporters she hoped for economic growth of more than 3% next year.

The government has said it wants to raise the daily minimum wage to 400 baht ($11.72) nationwide to help drive the economy.

However, the wage committee on Monday decided to raise the daily minimum wage by 2.9% to between 337 baht and 400 baht ($9.9 to $11.7), varying in each region, effective Jan. 1.

The top end of that range will apply only to the provinces of Phuket, Chachoengsao, Chon Buri and Rayong, and the holiday island of Samui.

Paetongtarn said the government also approved tax breaks to boost consumption, but gave no details.

Deputy Finance Minister Julapun Amornvivat said the government would offer a tax deduction of up to 50,000 baht based on proven spending, but excluding domestic travel. The tax breaks will be introduced between Jan 16 and Feb 28, he added.

The prime minister said the cabinet had approved the second phase the handout scheme worth 40 billion baht for four million elderly people who would receive payments by January.

The first phase of the signature $14 billion scheme was launched in September, with about 14.5 million people having so far received payments of 10,000 baht each. The government plans to distribute the handouts to about 45 million people overall.

($1 = 34.1300 baht)

(Reporting by Orathai Sriring and Kitiphong Thaichareon; Editing by Martin Petty)