You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

January 12, 2021

Thailand Announces Social Security Assistance for Second Wave of COVID-19

Subscribe to Updates

Due to the resurgence of the COVID-19 pandemic in Thailand since December, 2020, Thailand’s Ministry of Labor recently published two regulations under the Social Security Act (SSA) in the Government Gazette:

  • The Regulation on Entitlement to Compensatory Benefits in the Event of Unemployment Due to Force Majeure from the Pandemic of Dangerous Communicable Disease Under Relevant Law Relating to Communicable Diseases B.E. 2563 (2020) (the Force Majeure Regulation); and
  • The Regulation on Determination of the Amount of Contributions to the Social Security Funds B.E. 2563 (2020) (the SSF Contribution Regulation).

Details of the two regulations are provided below.

The Force Majeure Regulation

This regulation is similar to a previous regulation from April, 2020, during the first wave of the pandemic, stating that the definition of force majeure under the Social Security Act B.E. 2533 (1990) (the SSA) includes hazards from pandemics of dangerous communicable diseases (including COVID-19). This definition therefore affords protection to insured persons (i.e., employees) in the event that the COVID-19 pandemic results in their being unable to work, or their employers being unable to operate their business normally.

This regulation allows the Social Security Office (SSO) to pay compensation to employees who:

  • are insured persons who qualify to receive compensatory benefit in case of unemployment in accordance with the SSA;
  • have to cease working temporarily during the period from December 19, 2020 onwards; and
  • do not receive wages from their employer during the temporary cessation.

This applies only if the circumstances above result from the following force majeure events related to hazards from COVID-19 (or other pandemics of dangerous communicable diseases that affect the public under the Communicable Diseases Act B.E. 2558 (2015)):

  • The employee cannot work, or the employer does not allow the employee to work, because of quarantine or to comply with a COVID-19 preventative measure; or,
  • The employee cannot work because the employer temporarily ceases operations, wholly or partially, due to a government order to close the premises temporarily under the Communicable Diseases Act preventing the business from operating as normal.

The affected employee will be entitled to compensation at a rate of 50% of their daily wages during the quarantine period, period of compliance with a COVID-19 preventative measure, or period of temporary premises closure, for not more than 90 days. The payment will be calculated based on daily wages in accordance with section 57 paragraph 1 of the SSA, but will be paid monthly.

The SSO will cease payment of the compensation if the employee resigns or is terminated by an employer, or the employment contract expires. In addition, the employer is obligated to issue a certificate letter to request compensation in the event of unemployment resulting from force majeure. The certificate must be in accordance with a form letter prescribed in the regulation, can be made and sent electronically, and must be retained by the employer as evidence.

The SSF Contribution Regulation

This regulation reduces the rate of mandatory Social Security Fund contributions under section 33 of the SSA effective from January 1, 2021 to March 31, 2021. Contribution rates are calculated as a percentage of each employees’ monthly wages, based on a minimum monthly wage of THB 1,650 and a maximum monthly wage of THB 15,000. The reduced rates are as follows:

The rates of mandatory Social Security Fund contributions under section 33 of the SSA effective from April 1, 2021 onward, are as follows:

Therefore, based on the minimum and maximum wages allowed for calculation, from January 1 to March 31, 2021, the contributions would range from THB 49.5 to THB 450 per month for both the employer and the employees. From April 1, 2021 onwards, this will increase to THB 82.5 to THB 750.

Related Professionals

Practices

Employment

Location

RELATED INSIGHTS​ 

March 27, 2024
Cambodia’s Ministry of Labor and Vocational Training issued the Notification on the Compensation for Terminating an Employment Contract on March 21, 2024, clarifying the compensation due to employees upon the termination of their employment contracts. The notification outlines different requirements depending on the nature of the termination and the type of employment contract, as laid out below. Termination without Valid Reason and in Absence of Serious Misconduct If an employment contract has been terminated by an employer without a valid reason and the employee did not commit any serious misconduct as defined under the relevant article of the Labor Law, the employer must compensate the employee as follows: Fixed-Duration Contract: Wages that have not yet been paid; Unused and unpaid annual leave through the termination date; Severance payment equal to at least 5% of the wages paid to the employee during the length of the contract; and Damages for being laid off before the expiration date of the fixed-duration contract, at least equal to the wages the employee would have received had he or she completed the original contracted term of employment. Unspecified-Duration Contract: Wages that have not yet been paid; Unused and unpaid annual leave through the termination date; Compensation in lieu of notice if the employer did not give prior notice in accordance with the Labor Law; Seniority indemnity for the semester that the employee is terminated and total seniority back payments that have not been paid; and Damages for being laid off, in an amount equal to the seniority payment received during the employment contract. Termination in Cases of Serious Misconduct Employees who commit any serious misconduct as defined under the Labor Law (regardless of whether they are under a fixed-duration or unspecified-duration contract) are entitled only to the following compensation: Wages that have not yet
Read More
March 18, 2024
Lawyers from Tilleke & Gibbins’ labor and employment team have contributed a new Vietnam chapter to Thomson Reuters Practical Law’s Employment and Employee Benefits Global Guide. The guide provides a high-level comparative overview of employment laws and regulations across various jurisdictions around the world. Tilleke & Gibbins also contributed the Myanmar chapter of the guide. The Vietnam chapter covers a wide range of typical employment matters, such as limitations on working hours, paid leave requirements, minimum wage, and health and safety obligations. In addition, the guide provides insight on a number of topics of special interest to foreign investors doing business in Vietnam, including the following: Mandatory contents of a labor contract; Visas and permits required for expatriate employees; Employers’ obligations for protecting employees’ privacy and personal data; Procedural requirements for the dismissal of an employee; Employer and parent company liability. To view the latest version of Employment and Employee Benefits, please visit the Practical Law website and enroll in the free Practical Law trial to gain full access.
Read More
February 28, 2024
The Myanmar Investment Commission (MIC) has announced the opening of the trial period for MIC-permitted or MIC-endorsed companies to reenter investment data for using the Myanmar Investment Online (MyInO) system. The trial period is open until June 30, 2024. The MyInO system allows for the submission and recordal of applications for investment under the Myanmar Investment Law. With the implementation of phase 2 from September 1, 2023, applications for the appointment or resignation of foreign experts and employees within MIC-permitted or MIC-endorsed companies can now be submitted manually or through the Investment Monitoring System available on MyInO. To initiate the application process in MyInO, applicants are required to create an account on the platform. Subsequently, companies holding an MIC permit or endorsement must reenter all investment-related data since the obtaining of the relevant permits/endorsements, in compliance with the announcement. Following this data update, applications can be filed through MyInO. After this trial period, the submission of applications for appointments will be available online. The benefit of using MyInO to submit a foreign expert or employee appointment or resignation application is that the application can be submitted within 30 days of the foreign expert’s arrival in Myanmar. In contrast, hard copy applications must be submitted within seven working days of arrival. According to the Myanmar Investment Law, a foreign expert is one who qualifies as a senior manager, technical or operational expert, or advisor in permitted or endorsed companies within Myanmar. For assistance with completing the investment data reentry process or filing applications for appointment or resignation of foreign experts or employees, or for further details on any aspect of the Investment Monitoring System under MyInO, please contact Tilleke & Gibbins at [email protected].
Read More
February 9, 2024
Tilleke & Gibbins employment specialists in Myanmar have contributed an updated Employment and Employee Benefits in Myanmar overview for Thomson Reuters Practical Law, an online publication that provides an overview of employment and employee benefits in jurisdictions worldwide. The Myanmar overview was written by members of Tilleke & Gibbins’ Yangon office, including Yuwadee Thean-ngarm, director; Nwe Oo, senior associate; and Kyaw Min Tun, associate. The chapter covers a wide range of key employment topics, including employment status, background checks, regulation of the employment relationship, minimum wage, working hours and holidays, illness and injury of employees, discrimination and harassment, termination of employment, resolution of employer-employee disputes, redundancy/layoffs, employee representation and consultation, business transfer and insolvency, employee relocation, health and safety obligations, taxation of employment income, intellectual property issues, and more. Practical Law, one of the many legal reference resources from Thomson Reuters, publishes a wide range of guides for hundreds of jurisdictions and practice areas. The Employment and Employee Benefits Global Guide covers 44 jurisdictions around the world, with Tilleke & Gibbins also providing the Vietnam chapter of the guide. To view the latest version of the Employment and Employee Benefits in Myanmar overview, please visit the Practical Law website and enroll in the free Practical Law trial to gain full access.
Read More