Thailand Temporarily Reduces Social Security Contributions for Both Employers and Employees.
Legal News & Analysis - Asia Pacific - India - Tax - Labour & Employment
31 March, 2020
Due to the economic impact of COVID-19, the Board of the Social Security Office has agreed to reduce the rate for both employee and employer contributions to the Social Security Fund.
On March 23, 2020, it was announced that there would be a reduction from a 5% contribution to a 4% contribution, for both employees and employers, for a period of six months, commencing in March and ending in August.
However, at a cabinet meeting on March 24, 2020, the contribution rate was then revised further, reducing employee contributions to 1%, for a period of three months, commencing in March and ending in May. Employer contributions remain at 4%, but only from March to May. The earlier announcement is no longer in effect.
Following these reductions, employee contributions to social security are now 1% of salary, with a maximum contribution of THB 150 per month, for March, April, and May. Employer contributions are set at 4% of salary, with a maximum contribution of THB 600 per month, for March, April, and May.
As the situation is changing rapidly, further changes are certainly possible, and we will keep you updated as the situation develops.
For further information, please contact:
Siradapat Ratanakorn, Tilleke & Gibbins