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

March 27, 2020

Thailand to Temporarily Reduce Social Security Contributions for Both Employers and Employees

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 The earlier announcement is no longer in effect.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.

RELATED INSIGHTS​ 

February 22, 2021
Following the recent imposition of sanctions on Myanmar individuals and companies by the US, the UK and Canada have now imposed new sanctions. As with the US sanctions, these new measures impact UK and Canadian citizens and companies, and non-UK and non-Canadian companies and citizens with interests in those jurisdictions. The EU has indicated that it is planning to issue similar sanctions in the near future. New UK Sanctions In addition to the 16 individuals already sanctioned by the UK government, on February 18, 2021, the UK government announced that three individuals have been sanctioned for serious human rights violations and are now subject to asset freezes and travel bans. The full list of Myanmar individuals and companies sanctioned by the UK is available on the website of the Office of Financial Sanctions Implementation. Breaches of UK financial sanctions are criminal offences punishable in the UK by up to 7 years imprisonment and heavy fines. New Canadian Sanctions Also on February 18, timed to coincide with the UK sanctions, new Canadian sanctions were imposed on nine individuals. As with the UK, Canada already had a number of individuals in the Myanmar military on its sanctions list, and the new additions bring the total number of individuals sanctioned by Canada to 54. All assets of these individuals in Canada are now frozen, and they are banned from travelling to Canada. Canadian businesses or entities may not do business with any of the 54 individuals. Full details of the impact of the sanctions are available on the Government of Canada’s website, as is a database of the Myanmar individuals and companies subject to them. Breach of Canadian sanctions carries with it up to 5 years’ imprisonment in Canada and/or a large fine. Other Countries The EU is reportedly drawing up sanctions
January 26, 2021
On January 1, 2021, the government of Vietnam issued Decree No. 152/2020/ND-CP dated December 30, 2020, providing guidance concerning foreigners working in Vietnam (Decree 152). Foreign investors and expatriates should be aware of some notable new points.
January 12, 2021
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
November 3, 2020
Many Thai and international companies have expanded rapidly into Myanmar in recent years, in what had seemed to be an unstoppable expansion of cross-border trade resulting from the country’s emergence back onto the global stage. For those companies, the COVID-19 situation in Myanmar has been a cause for much concern and uncertainty—doubly so for those who had hired staff in the jurisdiction, as a lack of clarity regarding their obligations as employers was compounded by a lack of information on the situation on the ground.