Cabinet cuts SSF contributions by 1%

The cabinet has approved a proposal to cut employee and employer contributions to the Social Security Fund (SSF) by 1% each, down to 4% from the current 5%.

  • Published: 29/01/2013 at 05:18 PM
  • Newspaper section: topstories

Padermchai Sasomsap (Photo by Pattanapong Hirunard)

Labour Minister Padermchai Sasomsap said after the cabinet meeting on Tuesday the measure is aimed at minimising the impact of the government’s 300 baht daily minimum wage nationwide policy on manufacturers, which took effect from Jan 1.

The reduction in SSF contributions was retroactive to Jan 1, once it is announced in the Royal Gazette, said Mr Padermchai.

Tanit Sorat, vice chairman of the Federation of Thai Industries (FTI), said at a seminar on “Small and Medium Enterprises (SMEs) and their adjustment amid changes” held on Monday, that he was planning to bring SME representatives to meet with Finance Minister Kittiratt Na-Ranong to seek the government’s help.

He said the meeting with Mr Kittiratt and the SMEs is being arranged.

According to the FTI vice chairman, the assistance measures FTI would ask for include;

1) The government should set up a state fund to compensate for the difference in the increased daily minimum wage for struggling SMEs.

2) Under this scheme, the government should help shoulder the wage difference by 25% and the employers would pay the remaining 75% for this year.

3) In 2014, the compensation rates would be split evenly, 50% each for both the government and the employers.

4) The rates would be 75% for employers and 25% for the government in 2015.

5) That SSF contributions of employers and employees be cut to 3% each, from the current 5%.

6) The government should cut its withholding tax on production hiring contract income of manufacturers from 3% to 0.016% to ensure sufficienct liquidity for manufacturers.

7) It should help cut production costs of manufacturers by reducing water and electricity rates and also fuel prices.

8) It should support the attempt to improve manufacturing  efficiency by directing state-owned banks to grant low interest loans for manufacturers to buy new high-tech machinery.

9) It should help strengthen manufacturers’ trade competitiveness, and set up tproduct distribution centres both in Thailand and overseas.

About the author

Writer: Online Reporters
Position: Online Reporters

Latest stories in this category