The minimum wage: Thailand’s hidden election issue

One major topic has been conspicuously absent from campaigning for this election: big raise in daily minimum wage, despite its role in shaping living standards for millions of Thais.

After Pheu Thai swept to victory in 2011 on a pledge to raise the daily minimum wage from 221 to 300 baht, other political parties followed by vowing even bigger hikes at later elections. But not this time.

“We are disappointed,” said Sriprai Nonsee, a labour rights activist with the Rangsit Labour Union Group (RLUG).

The last election in 2023 saw most major parties work hard to woo millions of unskilled workers – promising big daily wage hikes. Pheu Thai unveiled plans to raise the minimum to 600 baht by 2027, while Move Forward (now the People’s Party) pledged 450 baht, and Palang Pracharath guaranteed 400 baht.

However, not all experts agreed with the move.

Nonarit Bisonyabut, a research fellow at the Thailand Development Research Institute (TDRI), said it was better to upgrade worker skills rather than raise the minimum daily wage across the board.

“Increasing wages to an unreasonably high level will do more harm than good,” he said.

What are parties promising now?

The People’s Party has pledged five key policies for Thai workers: annual minimum wage rises to match living costs; a maximum 40-hour week; the right to form labour unions across all sectors; protections for freelancers; and reform of the Social Security Fund for greater transparency and a long-term safety net.

Pheu Thai has promised better protection and welfare for e-shopping delivery workers, including retirement benefits and accident insurance.

Delivery staff would also be exempted from motorcycle registration fees for two years under the policy. Pheu Thai has also pledged a 10,000-baht subsidy for workers enrolling on upskilling/reskilling courses, as well as an upgrade for the vocational education sector to meet labour market demand.

Thai Sang Thai plans to offer soft loans of 10,000 to 100,000 baht to help working-age Thais launch businesses. The party would also introduce an upskilling programme for retirement-age citizens who choose to continue working.

The Democrat Party has guaranteed to maintain workers’ income levels and ensure fair wages, but without providing a detailed plan.

Bhumjaithai’s labour policy also lacks clarity, focusing instead on macro-economic issues such as government investment plans, trade, and its signature “Khon La Khrueng Plus” (co-payment plus) shopping subsidy programme.

What experts say

Dr Kiatanantha Lounkaew, who lectures at Thammasat University’s Faculty of Economics, said voters should demand clear answers from politicians on the daily wage.

“They should ask if a raise is financially feasible, or would it lead to economic meltdown?” he said.

He added that while raising the minimum wage is important for low-income labourers, upgrading their skills would allow them to demand higher pay.

“The daily wage level should be left to the existing tripartite committee of employee, employer and government representatives.

Let the raise be determined via proper mechanisms, balancing economic realities with dignified living conditions for workers,” he said.

Kriengkrai Thiennukul, chair of the Federation of Thai Industries, said employers were willing to pay more for workers with skills, qualifications and productivity that suited their business model.

He added that some companies are willing to pay a basic daily wage of over 1,000 baht, but struggle to find qualified workers. “We support the ‘pay according to skill’ concept,” he said.

He also called for reform focused on developing a skilled workforce required for advanced industries – the new engines of Thai economic growth.

“The Thai economy is growing at a rate of just 1.5 to 2 per cent, while our neighbours are doing far better. It’s about time that political parties began pitching concrete solutions for propelling our GDP growth,” Kriengkrai said.

Reskilling to escape poverty trap

Parinya Chulekha, who heads a labour-knowledge association, said many workers remain unskilled because they lack opportunities to upgrade their abilities.

“As unskilled workers, they earn only about 357 baht a day. To feed their families, they need to work overtime,” he said, adding that they have little time for themselves or their families, let alone upskilling or reskilling.

He noted that government agencies usually offer free courses on weekdays, restricting the opportunity for working people to attend.

“If they don’t go to work, they don’t earn anything. Also, if they skip work, they can lose out on special allowances, including bonuses,” Parinya said.

Kwan, who works in a Bangkok factory fastening knots, said she has held the same job for 27 years with no pathway to promotion.

“I need to work extra hours to survive, so it’s difficult for me to learn additional skills. But without new skills, I can’t move up,” she said.

Parinya said political parties should focus on finding new ways to help people upgrade their skills so they can escape the minimum-wage cycle.

“Employers would also benefit, as wages will match the skills workers actually use,” he added.

Economics lecturer Kiatanantha said upskilling and reskilling courses offered should be designed to suit each age group, including seniors struggling to adapt to new requirements at work.

“For older workers, we may need systems that help keep them in the labour market until they feel able to retire,” the academic said.

Minimum daily wage sets labour standards

Labour activist Sripai said debates over the minimum daily wage cannot be treated in isolation, since the base rate shapes expectations for skilled pay and other labour-market standards.

She argued that pledges to peg wages to inflation are also problematic.

“Promising to raise the minimum wage in line with living costs doesn’t make us feel safe, because there’s always disagreement on how much the cost of living has gone up,” she said.