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

Subscribe to Updates

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 The earlier announcement is no longer in effect.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 Professionals

Practices

Employment

Location

RELATED INSIGHTS​ 

March 2, 2020
In November 2019, the National Assembly of Vietnam issued a new version of the Labor Code, which serves as the principal legislation on employment and labor relationships in Vietnam, covering domestic and foreign employers and employees. The changes found in the new law are more incremental than sweeping, and generally serve to close loopholes and clarify vague provisions in the existing Labor Code of 2012.While the new Labor Code will not take effect until January 1, 2021, employers operating in Vietnam should note the key changes now to facilitate timely implementation.
Read More
February 5, 2020
Labor disputes typically arise when one party—often the employee—feels unfairly treated, for reasons that may stretch far beyond the law, and consequently he or she will feel entitled to restitution. Thailand’s labor laws encompass several safeguards that help employers meet a standard of fairness when dealing with dissatisfied or aggrieved employees.
Read More
January 28, 2020
Tilleke & Gibbins authors have provided the latest update to the Thailand Q&A section of Doing Business in… , a Q&A-style guide published by Thomson Reuters Practical Law that presents an overview of recent legal developments affecting doing business in 59 jurisdictions worldwide. The Thailand chapter of the guide was written by attorneys from Tilleke & Gibbins and presents an overview of Thailand’s legal system and key laws applicable to foreign companies doing business in the country.
Read More
January 10, 2020
On December 30, 2019, the government of Vietnam issued Decree 99/2019/ND-CP detailing and guiding the implementation of the amended 2018 Law on Higher Education (Decree 99). Decree 99 will take effect on 15 February 2020, and sets out, among other things, conditions for the establishment of campuses in Vietnam of foreign higher-education institutions, regulations on governing boards, and the autonomy and accountability of higher-education institutions.
Read More