Bangkok – The government proposed increase in the minimum wage to 400 baht per day would be welcomed by employees but the private sector is most definitely opposed to it, with some SME operators saying they might be so adversely affected they could go out of business.
Suphan Mongkholsuthee, president of the Federation of Thai Industries, commented that the proposed increase is yet to get approval from the Tripartite Committee and the minimum wage cannot be set as a flat rate nationwide but should depend on the economic conditions of each area.
Suphan suggested that the government create a Social Security fund by deducting 5% of the employee’s wage in addition to the 2.75% in supplementary fund. Such a measure may be implemented on a temporary basis or may last for six months to one year or until the economic situation improves.
The employer’s 5% contribution should remain unchanged to add to the employee’s purchasing power instead of increasing the minimum wage. That measure will not seriously affect the employer, he said.