PUBLISHED: 9 Sep 2024 at 04: 47
Despite fears that the increase may hurt companies, Labour Minister Phiphat Ratchakitprakarn insists that the daily salary will increase to 400 baht on October 1.
A committee headed by the Ministry of Labour, according to Mr. Phiphat, may start a global minimum wage increase of 400 baht on October 1 as planned after discussions with company providers and a study by that committee.
” We are aware that the market is sluggish. Therefore, I have told the permanent secretary of Labour]Phairoj Chotikasatien ] to consider the issue with the most logical knowledge”, he said.
According to a study conducted with the Social Security Office ( SSO ), the government’s policy of a wage hike policy should apply to businesses or factories with at least 200 employees when the ministry announces a minimum wage of 400 baht.
The minister said,” This is a conclusion that we will have to discuss with the Ministry of Finance and the National Economic and Social Development Board.”
He stated that the SSO will take steps to give businesses with over 200 employees a 1 % discount on their Social Security Fund ( SSF ) contributions starting from next month until September of next year.
Mr Phiphat said small- and medium-sized enterprises ( SMEs ) with less than 200 employees will not be required to increase wages. Nevertheless, he emphasised the need to help these smaller firms, which employ around 90 % of the country’s workplace, until the economy summons.
He expressed confidence in the ability of the new government, which will be led by Paetongtarn Shinawatra, who he described as a new-generation head.
The secretary also made it known that the Labour Ministry did request that the Finance Ministry repurpose a compensation measure passed in 2012 after Yingluck Shinawatra announced the increase of the minimum salary to 300 baht.
Additionally, Mr. Phiphat mentioned the possibility of collaborating with monetary institutions to offer low-interest funds to businesses to help them keep their cash and liquidity following the pay increase’s implementation.
Additionally, he claimed that there will be a tax-savings program for businesses that offer employees job training.
However, Sanga Ruangwattanakul, chairman of the Khao San Road Business Association, said he is concerned about the pay increase as it will have both direct and indirect effects, such as a decline in jobs, cuts and higher prices.
Mr. Sanga urged the government to support the private market until the economy recovers by offering them tax breaks and exclusions.
I want the authorities to reevaluate and consider a way to make people more wealthy and enable them to succeed. Handing out money is never a green remedy”, said Mr Sanga. The government should take that place by creating tasks and honing staff ‘ abilities.