Scenarios to ensure income security for the working age population Valerie Schmitt, Social Security Specialist, ILO DWT Bangkok Assessment National Dialogue No2 Bangkok, 30 Nov 2011

 “All those in active age groups who cannot earn sufficient income enjoy a minimum income security” The C102 remains valid but is completed by two clear objectives Income replacement (loss of income in case of work injury, unemployment, sickness, maternity…) Minimum income so that people can meet their basic needs Incentives & support so that people develop individual capabilities

Target: The vulnerable workers Working poor, Street vendors, Domestic workers, Agriculture workers in seasonal employment … Low income (no minimum wage, irregular income) Low skills and low productivity No protection in case of loss of income because of “contingencies” (sickness, work injury…) Limited risk taking

For them, income security can include Mechanisms to provide complementary income Transfers in cash or in kind Public employment programs Support to access better paid jobs with sustainable income Job placement Apprenticeship programs Support to micro-enterprise creation Measures to increase their skills and employability Vocational training Apprenticeship programs Protection in case of loss of income because of “contingencies” (sickness, work injury, maternity…) Transfers in cash or in kind Insurance

Avoid dependency by linking social protection with employment Increase employability: human capital (health, education) + work experience & training Access to Sustainable employment (Micro-Enterprise or Formal jobs) Higher Levels of S Protection Higher levels of income + Employment Services Skills assessment & training … Access to PWPs ; Job placement Business Development Services Access to health, education, food security Income security Basic social protection WORKERS IN THE INFORMAL ECONOMY, THE WORKING POOR: Progressive inclusion in the labor market Higher social protection

Recommendations from the workshop Review/complement MSDHS scheme (3,000 Baht, maximum three times per year) Extend social insurance (art 33) to “atypical workers” such as domestic workers who are in an Employer-Employee relationship Review art 40 to include excluded workers (14 millions) and to expand coverage as well as to expand benefit package under art 40 Provide specific measures to resolve the mismatch between supply and demand of labour

Scenario: “Emergency relief & progressive access to decent jobs” Worker Registration, Vulnerability & skills assessment Apprenticeship program 3,000 Baht (upon registration) 3,000 Baht (upon arrival) 50% min. wage during 6 months Guarantee of employment during at least 6 additional months at minimum wage Enterprise receives 2,500 Baht/month during apprenticeship

Scenario: “Emergency relief & progressive access to decent jobs” Package 3,000 Baht upon registration & assessment 3,000 Baht of welcoming package in the enterprise Allowance of 4,500 Baht/month paid by the Government during 6 months Incentive paid to the enterprise of 2,500 Baht/month/person trained Assumptions Target population covered= 800,000 in 2017 Take up rate= 15%, 30%, 45%, 60%, 85%, 100% Admin costs (contractual arrangement with enterprises, vulnerability & skills assessments, M&E) = 10% of total cost of package