On September 1, 2020, the cabinet approved the draft Notification of the Ministry of Labor Regarding the Criteria, Methods, and Conditions for the Reduction of Contributions from the Employer and the Insured During the Coronavirus Disease 2019 (COVID-19) Outbreak (“Notification”), which will grant reductions to monthly Social Security Fund (SSF) contributions from employers, employees, and insured persons registered under Section 39 of the Social Security Act.
Once the Notification is enacted, employers and employees are required to contribute 2% of wages, with a cap of THB 300 for each, while Section 39 insured persons will contribute THB 96 per month. The reduced rates will apply for the three-month period between September 2020 and November 2020. In the event that the remittance exceeds the specified amount, the aforementioned persons can submit a request for a refund at the relevant Social Security Office.
Once it is promulgated, the Notification will constitute the Thai government’s second round of SSF contribution rate reductions. The first period of reductions occurred between March 2020 and May 2020.
Statutory monthly SSF contribution rates:
✓ Employers contribute 5% of wages with a cap of THB 750.
✓ Employees (under Section 33) contribute 5% of wages with a cap of THB 750.
✓ Voluntarily insured persons registered under Section 39 contribute THB 432 per month.
March 2020 – May 2020 reductions:
✓ Employers contribute 4% of wages with a cap of THB 600.
✓ Employees (under Section 33) contribute 1% of wages with a cap of THB 150.
✓ Voluntarily insured persons registered under Section 39 contribute THB 86 per month.
September 2020 – November 2020 reductions:
✓ Employers contribute 2% of wages with a cap of THB 300.
✓ Employees (under Section 33) contribute 2% of wages with a cap of THB 300.
✓ Voluntarily insured persons registered under Section 39 contribute THB 96 per month.