Assuming that 5 million workers were paid less than THB300 per day before the wage increase,d the scenario analysis indicates that employment growth would accelerate by up to 0.6 of percentage point by 2015, while real GDP growth would increase by 0.7 of percentage point above the level without the minimum wage increase (see figure C). More importantly, the initial adjustment costs, the reason for which minimum wage laws are often criticised, are likely to be insignificant. The net negative impacts on employment and GDP growth are estimated at just under 0.1 of percentage point in 2013, implying that an increase in labour costs resulting from minimum wage increases would be offset by, or, in most cases, dominated by positive employment impacts due to a boost in domestic consumer demand.