Bt300 Wage Push Will Hit Social Security Office Contributions, Thai Govt Warns

[webfact]

Bt300 wage push will hit SSO contributions, govt warns

By The Nation

The government may cut its contribution to the Social Security Office (SSO) fund because of the financial burden from the Bt300 minimum wage - but retirement and medical treatment payments would not be affected, Labour Ministry permanent secretary Somkiat Chayasriwong said yesterday.

The government would subsidise medical treatment to beneficiaries if SSO funds were insufficient, while payment of retirement returns starting in 2014 would not be affected, he said.

Somkiat did not say how much the government's SSO contribution - currently at five per cent - would be reduced by.

He did not support his statement by explaining what he or the SSO would do to secure a government subsidy, or provide a guarantee that the government would subsidise SSO treatment funds.

Somkiat was speaking at a Bangkok seminar for employers and owners of small-medium businesses worried about their operations being affected or forced to shut down because of the Yingluck government's election promise to raise the daily wage to a flat Bt300.

The seminar was told that a number of foreign electric appliance firms were preparing to move operations to locations in Burma, across from Kanchanaburi and Tak's Mae Sot district, and to Cambobia's Poi Pet and Koh Kong Island, where an Bt80 daily wage is allegedly paid to local assembly workers.

"The foreigners are all worried about the flat Bt300 to be imposed in Thailand. They vow to move when the new rate is in effect, because they will have to shoulder higher costs," said Chianchuang Kalayanamitr, a partner with a foreign company.

Dragan Radic, a senior International Labour Organisation official, suggested a government measure be put in place immediately to assist around 300,000 SME owners in Thailand who will be affected.

Help would also be needed for a large number of new graduates who could be without jobs for many years, as employers would seek only experienced workers to get full value for having to pay them Bt300 a day, he said.

Labour Minister Phadermchai Sasomsap said a request was made to the Financial Ministry on ways to cut corporate tax from 30 to 27 per cent next year - and to reduce electricity and water bills for SME owners, hopefully with the cooperation of electricity and waterworks agencies.

Phadermchai said skill enhancement would be crucial for all parties involved, and a request for Bt3 billion had been made to the government to improve existing skill and career training centres or to build new ones.

Anantachai Khunananthakul, chairman of the Employers Confederation of Thailand, said subcontractors likely to be hit hard by the push for a flat Bt300 a day wage should be granted immediate assistance, because they relied solely on labourers and the increased cost would be a big burden.

-- The Nation 2011-09-13

[KRS1]

This party loves to make impossible promises - anyone remember the 30 baht medical scheme?

Propositions to gather votes is the only thing this party is about.

Surely every government worker across Thailand would vote to keep this party in power if there is a wage increase for government workers.

Since the party also lifted the fuel tax, to appease the people, do they not realize that they have to find a way to recover those lost funds?

Can't wait to see what happens, when the 'no confidence rally ' hits thai parliament.

Edited September 13, 2011 by KRS1

[Jaivin2011]

What big corporations and smes should do is to trim their labour forces and only keep the more skilled and multi-taskers with the right attitude. They should rettrench out all the Isaan workers since its most of them that supported the red shirts and also if possible , they should move out to neighbouring countries so that the red government can take care of them. Middle-Class and Upper Class thais should also finds ways to avoid paying taxes and also to use the services of companies that are linked to the red shirts as all their contributions will only go to the govt pockets to support the garbage that supported them in the first place.

[scorecard]

Reduce contributions to the social welfare and medical funds.

Has anybody in this government done any proper projections of the contributions are needed to operate these future long - term

I can see the headline now, 5 years from now, maybe a bit more

'The Social Security Fund is broke!

Edited September 13, 2011 by scorecard

[drdoom6996]

They have been watching too much MSNBC. Make your plan work by robbing another successful plan.

[KKK]

And now they find this out, weeks after the promise was made. Just what were Yingluck's advisors doing? Grabbing at straws it seems, anything to get a vote.

And if those who were on baht 200/day are now to get 300..what about those who now get 300 shouldn't they get 450? This wage hike could affect more than JUST those on minimum.