With Thailand heading into economic recession as a result of the COVID-19 pandemic suffered nationwide, the employment sector has been adversely affected by the substantial market downturn. To cut costs during this abnormal operation, businesses are laying off employees and adjusting the monthly salaries paid to their workers. To acknowledge this economic situation, on 1 September 2020, the Thai Cabinet has approved the draft of the Ministerial Regulation on the Prescription of Criteria, Method, and Conditions of the Reduction to the Social Security Contribution of the Employer and the Insured Person during the Outbreak of COVID-19 (“Regulation”). The Regulation has subsequently been published in the Government Gazetted and came into force as from 14 September 2020.
As general rules, the Social Security Act (“Act”) prescribes the contribution rate payable to the Social Security Fund (“SSF”) at the fixed ceiling of 5% of the salary of employees up to a maximum salary base of THB 15,000. The calculated contribution rate shall not exceed THB 750 per month. Employers shall remit this calculated amount from the salaries of the employees to the SSF within the fifteenth day of the following month.
To ease financial burdens, the Regulations essentially cut the contribution rates for both employers and employees for a limited period of 3 months from September 2020 to November 2020. The contributions payable to SSF by the employers, employees, and insured persons are summarized in the tables below.
For employer and employees under Section 33 of the Act
Employees aged between 15 and 60 years old and their employers shall make a monthly contribution to SSF as per the reduced rates as follows.
| The previous rate | The reduced rate | ||
| Percentage | Maximum Amount | Percentage | Maximum Amount |
| 5% of the monthly salary of the employee(with the maximum salary base of THB 15,000) | THB 750 | 2% of the monthly salary of the employee(with the maximum salary base of THB 15,000) | THB 300 |
For insured persons under Section 39 of the Act
For insured persons who voluntarily contribute their own amount to SSF after the termination of their employment, the contribution amount shall be reduced as per the following rate.
| The previous rate | The reduced rate |
| THB 432 | THB 96 |
In case of a remittance exceeding the prescribed rate of this Regulation, employers, employees, or insured persons can apply for reimbursement of the excessive amount at the Social Security Office of Bangkok, Provincial Social Security Offices, or branches thereof.
