Govt to subsidise graduates' wages

Govt to subsidise graduates' wages

The cabinet yesterday approved a new measure to create jobs as the government tries to revive an economy devastated by the coronavirus pandemic.

Year-long jobs will be created for 260,000 graduates and the government will pay half their salaries during the one-year period starting next month, said Prime Minister Prayut Chan-o-cha.

Salaries will be set at 15,000 baht for university graduates, 11,500 baht for graduates with advanced vocational certificates, and 9,400 baht for graduates with standard vocational certificates. The subsidies will cost the state 23.48 billion baht.

Employers participating in this project must be in the social security system and their layoffs must not exceed 15% of their workforce during the one-year period.

Graduates must not be older than 25 years, unless they graduated during the last 12 months or are graduating this year.

Planned cash handouts had not yet been discussed, Gen Prayut said.

Government spokesman Anucha Burapachaisri said the Ministry of Labour must submit the details of the project to the cabinet for further consideration. The project will be financed with a one-trillion-baht loan from the Finance Ministry.

The PM said the cabinet also approved in principle measures to stimulate domestic consumption and assigned government agencies to figure how the measures would be sure to reach those most in need.

Last week, the Centre for the Administration of the Economic Situation Affected by Covid-19 approved a 45-billion-baht cash handout scheme, aimed at helping 15 million people. Spending will be initially capped at 100-250 baht per person per day, with the government subsidising 50% of their outlay.

The government has promised to give 3,000 baht in cash to people to buy consumer goods. They are required to first register online and the money will subsequently be transferred through the Pao Tang app's G-wallet.

The measures are expected to inject 90 billion baht into the economy.

Do you like the content of this article?