BANGKOK, 14 February 2013 The Ministry of Labor reveals that nearly 2,000 workers have been laid off so far this year, thanks to the minimum wage hike, and the future also looks bleak for another 4,000.
Labor Minister Padermchai Sasomsap said 1,874 workers have been laid off by 41 companies since January 1st; 500 of whom as a direct result of the minimum wage rise, according to Department of Labor Protection and Welfare. Moreover, 24 more companies with a combined workforce of 3,901 are likely to terminate their employment in the near future.
Meanwhile, the Social Security Office (SSO) has reported that 52,000 people have registered for unemployment benefit. However, only 4,000 of the number were laid off, with the majority of them citing personal reasons for quitting their jobs.
Those whose jobs have been terminated as a result of the new wage will be qualified for unemployment benefit, but only if they apply for it through the SSO. They will be paid half of what they were earning for a period of 6 months, while those who quit on their own will be paid 30% of their last month’s income for the next 3 months.