Thailand’s Labour Minister proposes ฿3,000 per month per child for seven years to boost the workforce and counter demographic decline. With falling birth rates and social security at risk, urgent action is needed to avoid a looming population crisis by 2074.
Minister of Labour Phiphat Ratchakitprakarn on Monday made a groundbreaking proposal to offer a child allowance rate of ฿3,000 per month for children of Section 33 Social Security Fund workers. The minister explained that a programme in which such children are raised in Thailand’s rural countryside could help the country address its massive demographic problem. He proposed that the payment be made for seven years in relation to each child. At the same time, the minister acknowledged that the cost would be significant. However, he predicted that a population implosion would be far costlier to the government and the nation over the next fifty years.
Thailand’s Minister of Labour has proposed that the government radically increase child benefits for workers under Section 33 of the Social Security Act. Mr. Phiphat was speaking as Thailand’s death rates have risen above its birth rate. Indeed, the Labour Minister noted this phenomenon when he addressed reporters on the issue in a statement on Monday. Certainly, the issue of Thailand’s falling population is pressing.
Indeed, there was a stark warning from Thailand’s Minister for Social Development and Human Security, Varawut Silpa-archa, in February. He warned that by 2074, Thailand’s population could fall to just 30 million.
Thailand’s unique population challenge could be addressed through rural child-rearing and support
However, Thailand, as a developing country that has reached a situation with a declining population, may yet have a way to remedy the problem. This is where Minister Phiphat’s idea comes in.
At length, there is a tradition in Thailand of grandparents rearing young children in the countryside, while parents often relocate to urban centres such as Bangkok to work.
Mr. Phiphat proposes raising the child support level to ฿3,000 per child per month. At the same time, Section 33 workers would be encouraged to raise their children in rural areas.
On Monday, the minister noted that the cost of bringing up children in cities is significantly higher. In particular, he identified higher education costs. Therefore, the proposal would encompass raising children in Thailand’s rural countryside.
Child support proposals are part of a broader response to economic and demographic issues in Thailand
Presently, Thailand pays only ฿800 per month in child support. However, in 2025, that amount will rise to ฿1,000 per child.
The minister is, at this time, presenting his idea to the public to generate feedback. Certainly, the problems of demographics are at the core of all economic problems that Thailand potentially faces.
Indeed, not just Thailand, but Asia and the rest of the world. A key factor for developed nations is that the dominant philosophy in society has turned its back on traditional attitudes.
Indeed, family life itself is under attack in developed Western nations. Certainly, developed economies increase the burden on parents through increased childcare costs. Therefore, the minister’s plan is essentially aimed at reducing childcare costs for Thai adults who wish to have children.
Minister highlights urgent need to boost birth rate to maintain Thailand’s workforce and economic future
The minister does not specify if there would be a cap on his programme for two or three children. However, he did concede that the costs would be high. Nevertheless, he emphasised that the need to replace the country’s workforce was urgent. Particularly if Thailand wants to maintain its ethos and identity.
“I myself have an idea that I would like the Permanent Secretary of the Ministry of Labor to discuss with the Social Security Board. For those who are labourers under Section 33, when you have more children and go to raise them in the countryside or in the provinces, we will increase the child support from ฿1,000 per month to ฿3,000 per month for a period of 7 years,” the minister said on Monday as he introduced his idea.
A key consideration in the minister’s proposal would be whether it aligns with the United Nations’ development goals. Certainly, United Nations policy in Asia and Thailand to date has contributed to the present population crisis in the country. Indeed, in Southeast Asia at this time, 47% of women use contraception. The figure is highest in Thailand at 55%.
Birth rates have been declining since the 1960s despite government efforts and new child-rearing initiatives
Previously, Thailand introduced the first government contraceptive program in the mid-1970s. However, birth rates began falling in the kingdom in the early 1960s.
Mr. Phiphat says he believes the country’s Social Security Office should be at the vanguard of efforts to boost the country’s population. In particular, he emphasises his plan to raise young children in Thailand’s rural areas, where costs are lower.
In turn, these children, when grown, will enter the workforce under Section 33 of the Social Security Act. At the same time, grandparents can be involved in a programme thereby harnessing Thailand’s strong and valuable family traditions.
In the meantime, Thailand faces a demographic crisis as its birth rates continue to decline sharply. With the country’s social security costs rising and its economic growth slowing, experts not only warn but are already certain of a population implosion that could severely impact the nation’s future. Indeed, the data is already in.
Thailand risks a population collapse without economic growth as low birth rates put strain on social security
Thailand’s situation is unique—it is one of the first countries in the world to face a potential population collapse without having transitioned to a high-income economy.
In the coming decades, Thailand’s population could fall dramatically. Projections suggest that without immediate intervention, the population may drop to just 30 million in the next 50 years, a catastrophic decline from today’s figures.
By 2074, Thailand’s population will fall to 30 million people even based on the current birth rate which is still falling
Currently, Thailand has the second-lowest birth rate in Southeast Asia, slightly above that of Singapore.
One immediate consequence of the population crisis is the strain on Thailand’s social security system. With an ageing population and fewer young people in the workforce, the country’s social security fund faces bankruptcy within a decade unless drastic measures are taken.
Thailand must act now to reverse declining birth rates or face continued economic slowdown and malaise
Falling birth rates and rising social security costs are placing immense pressure on the economy. GDP growth has already slowed, and Thailand’s days of 5% annual growth seem to be a thing of the past.
Minister Phiphat cabinet colleague, Minister Varawut, leader of the Chart Thai Party, has already emphasised the problem. In February, he urged that the Kingdom must act now to avoid a more severe economic decline.
To address this looming crisis, the Mr Varawut held a workshop in Bangkok in March 2024. He stressed that the government must focus on fostering stability, warmth, and support for families if it hopes to reverse the population decline.
Indeed, Thailand’s strong family traditions could be a considerable asset at a time when the nation faces so many chronic economic problems.
Join the Thai News forum, follow Thai Examiner on Facebook here
Receive all our stories as they come out on Telegram here
Follow Thai Examiner here
Further reading:
Thailand’s days of GDP growth in excess of 5% may be a thing of the past as it has grown too old
Cabinet in pension move as the number of working Thais to over 60s is set to half in 20 years
Thailand’s new move to boost the birth rate and fight the negative impact of an ageing population
Denmark and Thailand seek economic partnership and face the same challenge – demographics
Thailand’s new move to boost the birth rate and fight the negative impact of an ageing population
BCG economic and social blueprint over the next 5 years unveiled, promises more money for less
Noble spirit of Thailand’s elderly helps country deal with demographic problem
