Bangkok (VNA) – Thai Labour Minister Phiphat Ratchakitprakarn has revealed that the country’s move to raise the minimum wage nationwide to 400 THB (11.7 USD) a day will be started from Oct. 1 despite concerns that the rise will harm businesses.
Phiphat said that following discussions with business operators and a study by a subcommittee set up by the Ministry of Labour, the ministry confirmed that a nationwide minimum wage increase will take effect on Oct. 1 as planned.
A study conducted with the Social Security Office (SSO) found that when the ministry announces a minimum wage of 400 THB, the wage hike policy should apply to companies or factories with at least 200 workers.
He said the SSO will adopt measures to compensate businesses with over 200 employees by providing them with a 1% discount on their contributions to the Social Security Fund starting next month until September next year.
Phiphat noted that small- and medium-sized enterprises with less than 200 employees will not be required to increase wages. However, he emphasised the need to support these smaller companies, which employ over 90% of the country's workforce, until the economy revives.
In addition, Phiphat disclosed the possibility of asking for cooperation from financial institutes to provide low-interest credit to companies to help maintain their businesses' liquidity and cash flow after the pay rise comes into effect.
Moreover, he said there will be a measure to offer tax discounts for companies that provide career training to workers./.
