The Thai government plans to bring Grab drivers and sex workers into the tax system with a new welfare bill aiming to include freelancers in social security. Still, the legal status of the sex industry remains contentious amid divisions within advocacy groups.
The Pheu Thai-led government is trying to engineer a new legal regime for contract workers, including Grab drivers and the country’s freelancers. A new law is expected to be passed before parliament soon. However, it is not clear how far the provisions will go in fully legalising the sex industry. In short, its main goal is to provide legal protections and, at the same time, bring millions of workers critical to the economy into the tax and social security net. At the same time, there is also a split between sex workers, with male workers wanting to remain unrecognised. In contrast, groups representing female sex workers want the industry to be legalised.
The Thai government is considering extending welfare protections to freelance workers, a group that has historically been excluded from the country’s social security system.
This move comes as part of the Pheu Thai-led government’s efforts to widen the country’s tax base. Additionally, a negative tax system is planned, which could mark the beginning of a new welfare system in Thailand.
However, this system would be based on work and employment. In the meantime, this potential policy shift would cover a wide range of contract workers, many of whom are linked to the service and tourism sectors.
Freelancers in Thailand would need to declare income to access proposed welfare benefits from the new system
The group includes professionals such as tour guides, ride-hailing service drivers, online content creators, and sex workers. However, freelancers would be required to declare their income and pay taxes to qualify for these benefits.
Tourism and Sports Minister Surawong Thienthong announced on Monday that the government is in talks with various agencies. He reiterated the government’s ambition to create a welfare system for freelancers.
This new system would allow freelancers to receive medical and other welfare benefits, which are currently available only to workers registered with the Social Security Office (SSO).
The minister emphasised that the move aims to provide better support for a growing economy driven by freelancers in Thailand. Mr. Surawong revealed that discussions with civil and labour advocacy groups had begun. Firstly, they are focusing on the challenges of setting up such a system.
One of the key points of debate is how to define freelancers, as these workers do not traditionally fall under formal employment. The challenge is to develop a regime where they can be incorporated into the existing welfare structure.
Thailand’s ageing population puts strain on social security fund, pressures for reform grow
Currently, only a quarter of workers in Thailand make social security returns. At the same time, the social security fund is increasingly under pressure as the country’s working population ages.
This issue is compounded by the fact that the Social Security Fund faces potential bankruptcy within the next decade.
Same-sex marriage law passed by the lower house. Next comes a law to legalise prostitution in Thailand
Social security fund faces bankruptcy in a decade if action is not taken due to the Kingdom’s acute ageing crisis
In short, that is if no action is taken to address the Kingdom’s ageing crisis. The need to integrate freelancers into the welfare system is becoming more pressing. Especially given their growing and critical contribution to the Thai economy. In particular in sectors like tourism and digital content creation.
One of the most debated aspects of the proposed welfare system concerns sex workers. Representatives from the Service Workers in Group Foundation (SWING) have voiced an interesting perspective.
Many of the group’s sex workers are calling for welfare benefits and legal protections. However, they do not want full legal recognition of their profession. These predominantly male sex workers fear potential social and legal consequences.
Therefore, they would prefer to remain anonymous due to the sensitive nature of their work. SWING highlights the importance of legal protections for sex workers. Particularly in cases where clients refuse to pay or inflict physical harm. While they do not seek full legalisation of the profession, they want to be able to claim their rights under the law.
Debate over welfare system divides sex worker advocacy groups. Full legalisation remains contentious
This approach aligns with the Pheu Thai Party’s policy of extending welfare benefits to all freelance professionals. However, it has sparked some controversy among different groups representing sex workers. There is a notable divide between male and female sex worker advocacy groups.
Female sex worker organisations have been advocating for the full legalisation of their profession. In this situation, they propose a legal regime similar to the model in Germany. In Germany, prostitution is legal and regulated, though the legislation has faced opposition from feminist groups.
However, most women working in Germany’s sex industry support the current legal framework. In effect, it provides them with rights and protections as well as recognition of their work.
The debate in Thailand echoes this divide, with some advocating for legalisation. Meanwhile, others seek only protection. Despite recent changes in the cabinet, it is expected that moves toward legalising the sex industry may progress.
On the other hand, it may be a tall order politically, especially given the present government makeup. Last year, former Prime Minister Srettha Thavisin supported such a move. A bill had been put forward by the now-defunct Move Forward Party to legalise prostitution and the profession as a business.
Previous proposals to legalise sex work faced resistance from conservative factions in Thai society
Previously, the proposal has drawn fierce opposition from conservative and traditional factions in Thai society. Unlike the recently passed same-sex marriage law, the debate over legalising prostitution is expected to become a politically contentious one.
Another group of freelancers advocating for inclusion in the welfare system is tour guides. The Professional Tourist Guide Association of Thailand has stressed the need for welfare protection.
At the same time, they emphasise the important role tour guides play in the tourism industry. Tour guides contribute significantly to the economy.
Their exclusion from the social security system has long been a point of contention. At a recent meeting, the association presented a draft bill to the Pheu Thai Party.
This urged the government to include tour guides in the welfare system. The bill proposes that tour guides receive the same protections as formally employed workers, including healthcare and other benefits.
However, the issue of illegal and foreign tour guides has become a growing problem. This has prompted the association to call for stricter enforcement of laws. Basically, to ensure that only certified Thai nationals can work in the profession.
Proposed bill to extend welfare to freelancers expected in upcoming Thai parliamentary session
The government aims to introduce the proposed bill for freelance worker welfare in the next parliamentary session. In brief, this is expected between December 2024 and February 2025.
According to Minister Surawong, the inputs from various civil and labour advocacy groups will form the basis of the bill. The proposal is expected to be popular among freelancers. Certainly, they have long sought greater legal and social protections.
The Pheu Thai Party-led government is working to finalise the details of the draft bill. This will include specific provisions and eligibility requirements. Once freelancers are included in the system, they will be required to pay taxes, just like registered workers.
While the proposed welfare system has garnered support from various freelance groups, several challenges remain. One of the main issues is ensuring that freelancers, particularly those in informal sectors like the sex industry, can maintain their privacy while still receiving the benefits they are entitled to.
Privacy concerns could complicate freelance worker registration for welfare benefits in a new system
Many sex workers fear that registering with the welfare system could expose them to social stigma or even legal consequences. It is difficult to see how this can work, especially if their profession remains illegal.
Indeed, there may also be significant constitutional questions. Certainly, any proposed law to fully legitimise prostitution will be contentious.
Presently in Thailand, prostitution is illegal, specifically under the Suppression of Prostitution Act (1996). The law outlaws the activity and places where it’s offered as a service, in particular brothels and public bars. The provision provides only for a fine of ฿1,000.
Nevertheless, under Thailand’s original penal code, Section 286, it is an offence for anyone over 16 years of age to subsist on earnings derived from prostitution. This provision includes anyone engaged in any role even indirectly linked to the activity. In addition, it includes situations where only a portion of anyone’s income is derived from it.
In particular, it specifies that such individuals may be imprisoned.
Protection of sex workers will be a challenge
Of course, the reality is that the industry is rife in Thailand. In addition, it is also, according to whistleblowers, linked to corruption within the Royal Thai Police throughout the country.
Any move to afford protection to those involved in the industry must be made with full awareness of such realities.
Additionally, there are concerns about the government’s ability to effectively manage and enforce the new system. With the growing number of freelancers across various industries, ensuring compliance with tax laws and proper registration may prove onerous.
The Thai government’s move to extend welfare coverage to freelance workers is a significant step toward better protections for this growing workforce. However, balancing welfare benefits with privacy concerns, particularly for sex workers, will additionally be a formidable challenge.
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Further reading:
Same-sex marriage law passed by lower house. Next comes a law to legalise prostitution in Thailand
Full steam ahead on LGBTQ rights in Thailand, new gender identity law ordered by the PM at cabinet
Gay and LGBT people in Thailand on the verge of same sex partnership era with progressive reforms
Underworld surrogacy trade exposed, man arrested for smuggling semen from Thailand into Laos
