Cabinet cuts employee social security contributions to 3 percent in Q4
The Thai cabinet decided today (Tuesday) to allow employees to reduce their financial contributions to the social security scheme from 5% of their salaries to 3% from October to December, according to Anucha Burapachaisri, deputy secretary-general for the Prime Minister.
He said that the same contribution will also be applied to the employers, whereas the contribution from the government will remain at 2.75% of their employees’ salaries.
Contributions to the social security scheme by earners under Section 39 of the labour law will be reduced from 432 baht to 240 baht per month from October to December.
Those under Section 39 who are eligible to the contribution reduction are people who have left their jobs, but have paid social security contributions for at least nine months while employed and have not missed paying their contributions for three months in a row.
Due to the reductions, Anucha said that total contributions to the Social Security Fund for this year are expected to sustain a shortfall of about 10.7 billion baht.
People covered by the social security scheme under Sections 33 and 39 are entitled to free medical care at the hospitals where they have registered and 50% of their wages, but not exceeding 15,000 baht, while they are undergoing medical treatment. In case of suffering permanent disability in the course of work, the employees are entitled to 50% of their normal pay for the rest of their lives.