Amendments to Workmen’s Compensation law

On 10 October 2018, the Workmen’s Compensation Act (No. 2), 2561 B.E. (2018 A.D.) (“the New Act”), to amend workmen’s compensation law, was published in the Royal Gazette, and the amendment will become effective on 9 December 2018.

Keywords: Mazars, Thailand, Legal, Workmen’s Compensation Act, Payroll, Benefits

22 November 2018

We set below key amendments of the New Act:

Benefits to be provided to employees

1. The amount of medical or rehabilitation expenses, as well as funeral expenses, that an employer must pay to an employee or his heirs will increase for the following:

a. A work-related injury;

b. A work-related illness; and

c. A work-related death or disappearance.

The revised rates will be set out in an upcoming ministerial regulation.

2. The amount of money that an employer must pay to an employee or his heirs as indemnification will increase from 60% to 70% of the employee’s monthly wages in the following cases:

a. The employee loses a limb and/or organ;

b. The employee is not able to work, regardless of whether or not he has lost a limb and/or organ;

c. The employee otherwise becomes disabled; and

d. The employee dies or goes missing.

3. The cap for the indemnification period for the death or disappearance of an employee will be extended from 8 to 10 years.

4. The indemnification period for the disability of an employee will change from being capped at 15 years to a minimum of 15 years.

Benefits to be provided to employers

1. The surcharge if an employer fails to make contributions will be reduced from 3% to 2% a month for the period in which the employer should have made such contributions.

2. The criteria for calculating the surcharge for an employer failing to make contributions will change. Currently, there is no limit on the surcharges to be paid, but a limit up to the amount of contributions that the employer should have paid will now be set.

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