Labor Minister Phiphat Ratchakitprakarn has revealed that the minimum daily wage could rise to 400 baht nationwide from October 1, despite concerns from business sectors. The increase follows discussions with business operators and a study by a subcommittee set up by the Ministry of Labor. The new policy, if implemented, is set to affect companies with over 200 employees, while small- and medium-sized enterprises (SMEs) will not be immediately required to implement the wage hike.
The Social Security Office (SSO) is preparing measures to support larger businesses impacted by the wage rise, including a 1% discount on their contributions to the Social Security Fund. The discount will be available from October to September next year. SMEs, which comprise over 90% of Thailand’s workforce, will receive continued support until the economy recovers.
The Labor Ministry is also working with the Finance Ministry to explore other compensatory measures, including low-interest credit for companies to help maintain liquidity. Additionally, tax discounts will be offered to businesses that invest in employee career training to help mitigate the impact of the wage increase.
Despite these efforts, some business leaders, such as the president of the Khao San Road Business Association, have expressed concern over the potential adverse effects on employment and operational expenses. They are urging the government to provide more substantial support through tax incentives and job creation initiatives to help businesses navigate the challenges posed by the wage hike. (NNT)
