FTI confident SMEs will get aid on wage hike

FTI vice chairman Vallop Vitanakorn told Krungthep Turakij TV yesterday that it is still possible that nationwide implementation of the wage hike would be delayed to April 1, which would leave three months to make the necessary adjustments.
“At a previous joint public/private meeting, we proposed the pay hike be delayed to April 1,” he said.
He insisted that there must be measures to help small and medium-sized enterprises (SMEs) cope with the new pay scheme. In some provinces like Phayao, the minimum wage would rise by nearly 100 per cent from Bt159 a day to Bt300.
The FTI proposed a step-by-step increase in employers’ burden, urging the government to assist employers by paying 75 per cent of the wage differential in the first year, 50 per cent in the second year and 25 per cent in the third year. The government assistance would be equivalent to Bt24.5 billion in the first year, Bt18.5 billion and Bt7 billion in the next two years. Only SMEs in 70 provinces included in the Social Security system would be eligible for the help. They employ about 2.2 million workers.
“Under this scheme, we think the government’s burden is minimised. If the public and private sectors agree on this, we still have time to discuss it,” Vallop said.
Acknowledging that some government agencies are concerned about some of the proposals from the private sector, he suggested the issue be raised again at the next public-private sector meeting.
“We insist that in assisting the private sector now, the government is not losing medium- and long-term benefits. Many SMEs that are not included in the Social Security system would be drawn into the system, and this will expand the corporate tax base. We strongly urge the government to reconsider this. Both sides can work together to find an appropriate mechanism to address this issue,” he said.