The cabinet has approved a ministerial regulation making the first 600,000 baht of compensation paid to laid-off workers not subject to taxation, increasing the threshold from 300,000, Labour Minister Phiphat Ratchakitprakarn said today.
He said that the revised regulation is in line with the Labour Protection Act and in response to the demands of workers.
According to the labour law, workers are eligible for tax-free compensation amounting to 400 days of earnings, instead of 300 days in the case of layoffs.
Those who have been employed for ten years or more will be entitled to compensation of 300 days at their current rate of pay, tax free. Those who have been working for more than 20 years will be entitled to 400 days.
