The Federation of Thai Industries (FTI) is calling for the Labour Ministry to waive the 5% contribution from insured workers to the Social Security Fund (SSF) for 6-12 months instead of increasing the daily minimum wage to 400 baht as promised during the election campaign.
The exemption should be subsidised temporarily by the government, FTI chairman Supant Mongkolsuthree said on Thursday.
The SSF has three contributions from three stakeholders: insured employees (5%), enterprises (5%) and the government (2.75%).
“The government is being asked to contribute 7.75% to the SSF,” Mr Supant said.
The FTI’s high-ranking executives will meet Deputy Prime Minister Somkid Jatusripitak today at Government House to discuss the labour wage matter, including FTI’s suggestion on its white paper.
Suchart Chantaranakaracha, FTI’s vice-chairman for labour affairs, said business operators oppose a sudden wage hike from the 308-330 baht to 400-425 baht under the new government.
“The sharp increasing cannot answer three urgent problems: lifting labour income and life quality sustainably, increasing operating costs for SMEs [small and medium-sized enterprises] and solving the country’s labour shortage,” Mr Suchart said.
He said a wage hike would compel most SMEs to quit their business and lay off workers.
Wages have brought in roughly 3.7 million labourers from neighbouring countries to Thailand.
Mr Suchart said the FTI is also calling for the Labour Ministry to allow FTI members to be part of the tripartite committee that has employer, employee and government representatives in order to consider appropriate wages, based on facts, figures and economic sentiment.
The committee agreed to increase the daily minimum wage in 2019 by 2-10 baht from 308-330 baht, but the new rates are needed for the Labour Ministry’s approval before making an announcement.
“Our members, as well as business operators from commerce and banking want to be part of the wage committee and expect that the minister will agree,” Mr Suchart said.