Padermchai rejects wage compo request | Bangkok Post: business

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Padermchai rejects wage compo request

Employers must bear pay hike costs alone

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The government has ruled out setting up a 50-billion-baht fund to help businesses cope with the recent minimum wage hike. 

Labour Minister Padermchai Sasomsap said Friday the government had rejected a request from the private sector to set up the compensation fund using public money.Mr Padermchai made the comments yesterday after meeting Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong at Government House.The daily minimum wage was increased to 300 baht nationwide on Tuesday. The policy has been in place in seven pilot provinces, including Bangkok, since April last year. Labour Minister Padermchai Sasomsap (Photo by Pattanapong Hirunard) The government still wants at least three months to assess the consequences of the nationwide policy, at which point it will reconsider measures to help businesses, Mr Padermchai said.The joint committee of the Federation of Thai Industries, the Chamber of Commerce, and the Thai Bankers' Association had proposed the compensation fund to help ease the impacts of the wage hike. The committee argued that small and medium-sized businesses (SMEs) would be particularly hard-hit by higher labour costs, and needed government help.The fund was one of 27 measures which the committee proposed to help ease the wage rise burden.Mr Padermchai said the...

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