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

April 2, 2020

Thailand’s Social Security Office Prepares Further COVID-19 Assistance Measures

Thailand’s Ministry of Labor is soon expected to issue two regulations and an announcement to formalize and implement the Social Security Office’s policy on COVID-19 assistance measures, reflecting two recent cabinet resolutions. Drafts are now being considered by the Office of the Council of State, after which they will be sent for the minister’s signature and announced in the Government Gazette. The following measures are expected to be announced:

Regulation on Entitlement to Compensatory Benefits in the Event of Unemployment Due to Force Majeure B.E. 2563 (2020)

The Ministry of Labor will revise the definition of force majeure in the relevant law to include hazards from communicable human diseases classified as serious under relevant laws relating to communicable diseases. This revision will bring the COVID-19 pandemic within the definition of force majeure, allowing the Social Security Office to apply section 79/1 of the Social Security Act (“SSA”) to pay compensation to employees who have had to cease working and are not receiving wages from the employer, but whose employment has not been terminated, as a result of one or more the following events related to the COVID-19 pandemic:

  • The employer orders the cessation of specific employees’ work due to the force majeure obstructing normal business operations.
  • The employee has to cease working due to the force majeure, with the approval of the employer.
  • The government orders the employer to close the business as a preventive measure for the pandemic of disease.

Employees will be entitled to receive compensation during the work cessation period at a rate of 62% of their daily wages contributions to the Social Security Office. This entitlement is limited to a maximum of 90 days.

Regulation on Criteria and Rates for Compensatory Benefits in the Event of Unemployment Amidst the Economic Crisis B.E. 2563 (2020)

This regulation will declare an economic crisis from March 1, 2020, to February 28, 2022, and will allow the Social Security Office to pay compensation to employees whose employment contract ends for the following reasons during this period:

  • Termination by the employer. This entitles the employee to receive compensation at the rate of 70% of their daily wages contributions to the Social Security Office. This entitlement is limited to 200 days for each termination.
  • Resignation or expiration of definite employment. This entitles the employee to receive compensation at the rate of 45% of their daily wages contributions to the Social Security Office, limited to 90 days for each period of unemployment.

Announcement on Rules, Procedures, and Criteria for Deduction of Contributions by Employers and Insured Persons in the Event of Pandemic of COVID-19 B.E. 2563 (2020)

This declaration will temporarily decrease the mandatory Social Security Fund contributions under section 33 of the Social Security Act B.E. 2533 (1990) to 1% for employees and 4% for employers (see this article for more information).

Employers and employees should consider the ramifications of these pending regulations so that they can take appropriate actions, if necessary, once the measures are officially issued. The measures above reflect cabinet decisions that are expected to be adopted into legislation in due course, but changes may occur as the legislation passes through the formalities before coming into force. We will continue to update you of any such changes as this situation develops.

RELATED INSIGHTS​ 

December 4, 2024
Thailand Legal Basics, a valuable primer for foreign investors, explores all aspects of living and doing business in Thailand. Written by specialists at Tilleke & Gibbins in Bangkok, it is the only comprehensive English-language guide to the Thai legal system with a focus on the concerns of foreign business and investment.
October 1, 2024
Three of Tilleke & Gibbins’ labor and employment specialists in Vietnam have contributed the Vietnam chapter to the newly issued Labor and Employment Disputes 2024, a comprehensive guide from Lexology Panoramic to labor and employment dispute resolution in various jurisdictions around the world. The Vietnam chapter covers the following topics: Pre-action considerations: Key requirements, third-party funding, contingency fee arrangements Issuing a claim: Forum, territorial jurisdiction, standing, commencing claims, fees, service Defendants and legal personality: Types of claims, time limits, counterclaims Case management: Procedure, rules, amendments to claims, adding parties to proceedings, consolidating proceedings Class and collective actions: Special considerations Evidence: Witnesses, tactical considerations Interim relief: Availability, requirements Trial: Hearings conduct and typical time frames, confidentiality and public access, media reporting Elements of successful claims and burden of proof Alternative dispute resolution: Available types, requirements and expectations Enforcement: Collective employment and labor rights, enforcement of collective rights, standing Remedies and enforcement: Available remedies, assessing compensation, enforcement mechanisms Appeals: Appeal procedure and time frames, other means of challenge Update and trends: Recent cases and developments, technology developments, other issues The Vietnam chapter was authored by Truc Thi Thanh, Linh Ngoc Nguyen, and Kien Trung Trinh. Tilleke & Gibbins also contributed the Cambodia and Thailand chapters to Labor and Employment Disputes 2024.
October 1, 2024
Four of Tilleke & Gibbins’ labor and employment specialists in Bangkok have contributed the Thailand chapter to the newly issued Labor and Employment Disputes 2024, a comprehensive guide from Lexology Panoramic to labor and employment dispute resolution in various jurisdictions around the world. The Thailand chapter covers the following topics: Pre-action considerations: Key requirements, third-party funding, contingency fee arrangements Issuing a claim: Forum, territorial jurisdiction, standing, commencing claims, fees, service Defendants and legal personality: Types of claims, time limits, counterclaims Case management: Procedure, rules, amendments to claims, adding parties to proceedings, consolidating proceedings Class and collective actions: Special considerations Evidence: Witnesses, tactical considerations Interim relief: Availability, requirements Trial: Hearings conduct and typical time frames, confidentiality and public access, media reporting Elements of successful claims and burden of proof Alternative dispute resolution: Available types, requirements and expectations Enforcement: Collective employment and labor rights, enforcement of collective rights, standing Remedies and enforcement: Available remedies, assessing compensation, enforcement mechanisms Appeals: Appeal procedure and time frames, other means of challenge Update and trends: Recent cases and developments, technology developments, other issues The Thailand chapter was authored by Eric M. Meyer, Chusert Supasitthumrong, Pathanin Sornchangwat, and Chayathorn Kruatao, all in the Thailand dispute resolution and litigation team. Tilleke & Gibbins also contributed the Cambodia and Vietnam chapters to Labor and Employment Disputes 2024. The full Thailand chapter is available below as a PDF.
August 14, 2024
Myanmar has once again made significant amendments to its minimum-wage framework by introducing additional allowances for both public- and private-sector workers. On August 9, 2024, the National Committee for Setting the Minimum Wage issued Notification No. 1/2024, which entitles private-sector workers to a new additional daily allowance of MMK 1,000 (approximately USD 0.48). This increase is on top of the MMK 1,000 additional daily allowance introduced last year. As a result, workers at private-sector employers with more than 10 employees are now entitled to the base minimum wage of MMK 4,800 plus additional allowances of MMK 2,000, for a total of MMK 6,800 (approximately USD 3.20) per day for an eight-hour workday, effective August 1, 2024. A similar additional allowance had been announced for workers in government departments and organizations on July 26, 2024. Background The MMK 4,800 (approximately USD 2.29) minimum wage for an eight-hour workday (equivalent to MMK 600 per hour) was established in May 2018 for all workers, irrespective of location or job type. In September 2023, the Ministry of Planning and Finance announced an additional daily benefit of MMK 1,000 for workers in government departments and organizations, and on October 9, 2023, the National Committee for Setting the Minimum Wage extended this benefit to workers at private-sector employers with more than 10 employees, bringing the effective minimum daily wage to MMK 5,800 (approximately USD 2.77). These changes took effect on October 1, 2023. Applicability of Additional Allowances for Private-Sector Workers The latest announcement also entitles employees to the base minimum wage and additional allowances for days used from their entitlement to leave and holidays, in accordance with the 1951 Leave and Holidays Act. However, the daily allowances—totaling MMK 2,000—are not to be included when calculating overtime payments. Instead, overtime payments must be calculated based on