Keywords: Mazars, Thailand, COVID-19, Social Security Fund, Employee, Employer
Updated: 22 April 2020
Reduction in the Social Security Fund (SSF) Contribution Rate
The reduction in the SSF contribution rate for both employees and employers was published in the Royal Gazette on 13 April 2020.
There is a temporary reduction in SSF contributions from 5% to 1% for employees and from 5% to 4% for employers from March to May 2020. Some businesses will now need to request a refund from the Social Security Office (SSO).
Per Royal Gazette 10 April 2020, the deadlines for paying monthly SSF contributions for March, April, and May have been deferred for three months. Therefore, the contributions for March must be paid no later than 15 July 2020.
If an employer has already submitted contributions at the normal rate of 5% for both employees and employers, the employer can claim any excess contributions back from the SSO by taking the following steps:
- Prepare the following documents signed by the person authorized with the SSF:
- Form SPS 1-23/1
- Copy of the company affidavit (issued within the last 6 months)
- Copy of the ID card / passport of the authorized person or attorney
- Copy of Form SPS1-10 (cover and detail) with receipt
- List of employees and contributions paid
- Submit all documents to the Bangkok SSO, the main provincial SSO or any branch.
- The excess contributions for both employers and employees, will be refunded by cheque payable to the employer.
- The employers should reimburse employees.
Source: Office of the Official Information Commission
Benefits from the Social Security Office
The Ministry of Labour has announced two Ministerial Regulations on 17 April 2020 to allow the SSO to pay benefits to the employee in case of dismissal, resignation, work suspension due to quarantine or observing quarantine and work suspension due to COVID-19 whether by the government order or not. Under the Ministerial Regulations, we note that:
1. An employer is not obliged to pay an employee that has been suspended from work due to quarantine, been quarantined by the authorities or hospitalised because he or she has COVID-19 or has been in close contact with someone with COVID-19. Such employee will receive 62% of their wage, capped at 15,000 baht per month, for a maximum of 90 days.
For example, an employee suspended from work due to quarantine, quarantined by the authorities or hospitalised can use sick leave and annual leave and continue to be paid by the employer. However, the employee will not receive the benefit under the SSF unless the employer stops paying the employee’s salary.
2. Employees that have had their employment suspended because of a temporary business closure as a result of a government order or decision of the employer due to the COVID-19 pandemic will receive 62% of their wage, capped at 15,000 baht per month, for not more than 90 days.
Items 1 and 2 apply only to employees who have made SSF contributions in at least 6 of the previous 15 months. In addition, the employer must complete this online form to certify that their actions as described in items 2 and 3 are a result of the impact of COVID-19 pandemic, which is considered an event of force majeure to the SSO. The information required in the form will be:
- Company information
- Workplace location i.e. in department store, market, stadium, exhibition centre, school, theatre, office building, etc.
- Reason why the employees cannot perform their works i.e. self-quarantine, a government order, decision by the employer due to the economy crisis or high risk infection.
- List of the employees who are not working with a start and end date.
Source: Royal Gazette
3. The SSO increased unemployment benefits from 1 March 2020 to 28 February 2022:
- For resignation, from 30% to 45% of the wage, up to a maximum of 90 days.
- For termination, from 50% to 70% of the wage, up to a maximum of 200 days.
The cap is 15,000 baht per month.
For example, an employee receiving a wage of 30,000 baht per month that has been made redundant (item 2 above) will receive a benefit of 62% x 15,000 baht = 9,300 baht per month.
Source: Royal Gazette