Central committee agrees to wage hike policy

 The seven pilot provinces are Bangkok, Phuket, Samut Prakan, Samut Sakhon, Pathum Thani, Nakhon Pathom and Nonthaburi. Earlier, the wage hike was expected to take effect on January 1, 2012. Still, despite higher wage, workers in the provinces would see no more increase until 2015.
 Ater an hour of discussion, the committee, chaired by Labour Permanent Secretary Somkiat Chayasriwong, also agreed that minimum wage in the remaining province would be raised within 2013.  
 However, the committee remarked that if the economic condition in the future is better than expected, wage hikes at all areas could be accelerated.
 Somchai Sajjapongse, director-general of the Fiscal Policy Office, also revealed the Finance Ministry's measures to help businesses cope with higher wage. Top of the line is the corporate tax cut from 30 per cent to 23 per cent next year and 20 per cent in 2013. SMEs with registered capital below Bt5 million and annual revenue below Bt30 million can deduct 1.5 times of higher payments from taxable income.
 There was no agreement on the private sector's proposals to have the value-added tax cut from 7 per cent to 3 per cent and to delay the extra contribution, in line with higher wages, to the Social Security Fund. The contribution issue is expected to be discussed at the Social Security Office's meeting on Oct 25.
 "The Central Wage Committee's resolutions as well as measures to alleviate business troubles from the ministries of Labour, Finance, and Industry would be bundled in a single package. Within 2-3 weeks, the measures should be ready," Somkiat said.