Thailand’s Social Security system is funded by amounts withheld from employee compensation as well as contributions made by the employer and the government. Companies are required to withhold social security contributions from employee earnings each pay period.
The social insurance fund provides old age, disability and survivor benefits. All employed persons between the ages of 15 and 60 contribute to the fund. An employee contributes a total of 3 per cent of their gross monthly earnings towards family benefits and pensions. The employee matches this amount and the Thai government contributes an additional 1 per cent.
The Juslaws & Consult payroll team provides a wide range of service options that includes calculating employee and employer contributions to the fund, and advising client companies on regulations that are often quite complex.
To claim an old age pension, an individual must be at least 55 years old and have made 180 months or more of contributions into the Social Security system. Individuals claiming disability are required to produce a medical certificate indicating they are no longer able to work. In addition, they must have made 3 or more months’ contributions to the fund within the 15 month period prior to filing the claim.
Sickness benefits and maternity benefits are included in the Social Security system as well. Individuals contribute 1.5 per cent of their gross earnings toward these benefits, with the amount matched by both the employer and the government.
Social Security covers unemployment benefits and is funded by individual contributions amounting to 0.5 per cent of their salary. The employer matches this amount and the government adds another 0.25 per cent. Families that are registered with Social Security can also claim a 350 baht monthly allowance for each child.