Thailand's Minister of Labor, Phiphat Ratchakitprakarn, responded comprehensively to the opposition's proposals on minimum wage adjustment and illegal employment of Chinese nationals in Thailand during the no-confidence debate in parliament, emphasizing that the Ministry of Labor's policies will adhere to principles of transparency and balance, ensuring the rights of Thai workers and the stability of the national economy.
1. Minimum wage increase to 400 Thai Baht/day? Ministry of Labor: Economic impact needs careful assessment
The opposition questioned the government's delay in fulfilling its campaign promise of a **national minimum daily wage of 400 Thai Baht (approximately 80 RMB)**. Phiphat responded that wage adjustments must consider various factors:
✅Employer's affordability:
Small and medium-sized enterprises (SMEs) in Thailand account for 99.5% of all businesses, employing **70%** of the national workforce
Rushed wage increases could lead to layoffs or business closures, ultimately harming workers' interests
✅Regional economic disparities:
The current minimum wage in Thailand varies by region, with the highest being 354 Thai Baht/day in Bangkok and the lowest at 328 Thai Baht/day in some southern provinces
A uniform increase to 400 Thai Baht could exacerbate regional development imbalances
✅International competitiveness:
Neighboring countries like Vietnam and Cambodia have minimum wages ranging from 180-250 Thai Baht/day; a significant increase in Thailand could weaken its attractiveness to foreign investors
Phiphat emphasized: "Wage policies should not just focus on numbers; it is essential to ensure that employers can survive, workers have jobs, and the national economy continues to grow." The Ministry of Labor has established a special committee, expected to complete its assessment by the end of 2025, before deciding on a nationwide wage adjustment.
2. Issue of illegal Chinese workers in Thailand: 50,000 licensed, 30,000 under investigation, Ministry of Labor forms special task force
The opposition highlighted the increasingly severe issue of illegal Chinese labor in Thailand, affecting industries such as catering, construction, and e-commerce, and squeezing local employment opportunities. In response, Phiphat announced the latest data and measures:
1. Legal foreign workers: 50,069 Chinese nationals hold work permits
20,000 people: High-skilled talents introduced through the Thailand Board of Investment (BOI) projects
More than 30,000 people: Ordinary work visa holders, whose employment authenticity will be individually verified by the Ministry of Labor
2. Illegal employment: Focused crackdown in three major areas
The Ministry of Labor has established a **"Special Action Group for Foreign Labor Management"**, prioritizing investigations in:
🔹Eastern Economic Corridor (EEC): Foreign factories in Chonburi (Pattaya), Rayong, and Chachoengsao
🔹Service industry: Chinese-owned restaurants, KTVs, and logistics companies
🔹Construction industry: Illegal labor in Chinese contracting projects
Enforcement methods include:
Surprise inspections of businesses, verification of employee visas and work permits (Work Permit)
Penalties for businesses illegally employing foreigners up to 400,000 Thai Baht (about 80,000 RMB) per person
Involved foreign workers arrested, deported, and banned from entering for five years
3. Long-term policy: Limit foreign labor quotas, promote employment for Thais
Adjusting the job list: Restricting foreigners from jobs like massage and retail that locals can perform
Strengthening intermediary regulation: Cracking down on illegal labor intermediaries to prevent "fake jobs, real immigration"
Skill training programs: Enhancing the competitiveness of Thai workers, reducing dependence on foreign labor
3. Reaction from the opposition and the public
Despite Phiphat's comprehensive response, some opposition members and labor groups remain dissatisfied:
Move Forward Party member questioned: "If wage adjustment requires long-term research, why was 'immediate implementation' promised during the campaign?"
Thai Labor Union called for: "A pilot of the 400 Thai Baht minimum wage should be implemented first, rather than an indefinite delay."
Small and Medium Enterprises Association warned: "If wage adjustment is enforced, 30% of small businesses might lay off employees."
4. Expert analysis: How to balance economic and labor rights?
Somchai Pakapaswiwat, a professor at the Faculty of Economics, Chulalongkorn University, pointed out:
"Thailand is facing dual challenges of labor shortage and industrial upgrading. Simply raising wages may not improve workers' lives; accompanying measures such as reducing living costs and providing vocational training are needed, otherwise business relocation or automation may exacerbate unemployment issues."
Conclusion: The Ministry of Labor walks a tightrope
This debate highlights the complexity of Thailand's labor policies—balancing worker rights with economic competitiveness. Phiphat's response indicates the government's attempt to find a balance between public demands and business realities. The effectiveness of minimum wage adjustments and illegal foreign labor management will be key indicators of whether the Settha government can fulfill its promise to "improve people's lives."
