Thailand’s Ministry Of Labor Reduces Social Security Contributions During COVID-19 Pandemic.
Legal News & Analysis - Asia Pacific - Thailand - Labour & Employment
17 April, 2020
Following recent cabinet resolutions on Social Security Office policy changes to assist those negatively impacted by the COVID-19 pandemic, Thailand's Ministry of Labor has now announced the implementation of the first of three expected measures, temporarily reducing contributions to the national Social Security Fund.
On April 13, 2020, the Announcement on Rules, Procedures, and Criteria for Deduction of Contributions by Employers and Insured Persons in the Event of Pandemic of the 2019 Coronavirus or COVID-19 B.E. 2563 (2020) was published in the government gazette. This announcement reduces the rate of mandatory Social Security Fund contributions under section 33 of the Social Security Act B.E. 2533 (1990) (SSA) is decreased to 1% for insured persons (employees) and 4% for employers from March to May, 2020.
An additional reduction is included for those who are no longer employed, but are still insured persons paying contributions to the Social Security Fund under section 39 of the SSA. In that case, the insured person’s contribution will be reduced to THB 86 per month from March to May, 2020.
In addition, if any employer or any insured person has already paid contributions for March 2020 at a higher rate than specified in the notification, they can submit a petition to the Social Security Office to request a refund of the excess.
For further information, please contact:
Chusert Supasitthumrong, Partner, Tilleke & Gibbins