Package drawn up to help SMEs cope with minimum-wage hike

The package, which includes a tax incentive, applies to SMEs with registered capital of no more than Bt200 million and employing up to 200 workers.

The higher wages such SMEs have to pay could be deducted from current wage rates, with the difference then used in getting a tax reduction, permanent secretary Somkiat Chayasriwong said at a press conference.

Larger businesses would be granted a reduction in corporate income tax to 27 per cent from the current 30 per cent, he said.

Large-scale skill-enhancement training supported by the government would in the meantime be held for seven- or 15-day periods, and workers undergoing such courses would be granted financial assistance towards their meals during the period of the training, he added.

Somkiat said the package had been agreed at a joint meeting between the Finance and Industry ministries.

Regulatory bodies in 35 professions also agree with skill enhancement being a precondition for payment of the daily Bt300 wage after workers undergo the courses and pass evaluations.

"The training will help increase productivity for employers and the workers' own skills, while decreasing product defects - even a reduction of only 2 to 3 per cent would satisfy employers and make them feel comfortable about paying the Bt300 wage," he said.

The conditions for training and the criteria for evaluations will be worked out later by the 35 bodies after approval from the Federation of Thai Industries, the Board of Trade of Thailand and the Thai Chamber of Commerce, which will all meet in the near future, the official said.

In addition to boosting their professional skills and productivity, workers would be instilled with good work ethics and attitudes that should improve their habits and boost their patience, he added.

Also speaking at the press conference, Anantachai Khunananthakul, chairman of the Employers Confederation of Thailand, said the sectors most needing government subsidies were food production, garments, hotels and tourism, electronics manufacturing and subcontractors.

The money from a future government-regulated fund should be handed directly to employers so that they have enough cash flow to pay the higher wages, he said.

Employers have reached agreement that the Bt300 daily minimum wage would not be applied to new employers still on probation, part-time employees or those aged 15 to 18 who are under apprenticeship, he added.