Another benefit of hiring illegal f

Another benefit of hiring illegal foreign workers to firms is cost reduction since
illegal foreign workers’ wages are on average lower than Thai workers. Although Thai law
stipulates that employers must pay foreign workers the same rate as Thai workers and
provide them with similar employment benefits, foreign workers are normally paid lower than
Thai workers due to their lack of bargaining power from their illegal status and lack of
knowledge about Thai law. Table 13 compares wages of Thai and Burmese workers in
various industries in 4 provinces where foreign workers were given amnesty and allowed to
work in 1996. It can be noted that Burmese workers wage was around 60-70% of the wage
received by Thai workers. Information revealed by an NGO working with foreign workers as
reported in a recent newspaper column indicates that illegal foreign workers employed in
Tak, Rayong and Samutsakorn provinces received only 50% of the going legal minimum
wage.
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