As part of its COVID-19 relief efforts, Thailand’s Labor Minister has announced that the required contributions to the social security fund have been temporarily reduced to ease the financial burdens faced by businesses and employees. Signed by Labor Minister Suchat Chomklin on 4 February 2021, the ‘Regulation on Determination of the Amount of Contributions to the Social Security Funds (No. 2) B.E. 2564’ stipulates that the new mandatory contribution to be paid by employers will be reduced from 5% to 3%, while employees’ contributions will be lowered to 0.5% from 5%.
Tossapol Krittiwongwiman, Secretary-General of the Social Security Office, clarified that those insured by the Social Security Fund will still be able to access their contributions upon sickness, childbirth, disability, death, child support, retirement, or unemployment. He further reiterated that the new regulation will not affect retirement fund contributions.
The reductions will take effect through February-March, which may entail significant changes to a company’s accounts. If you require more information or assistance with social security matters or any other Thailand-specific accounting concerns, Silk Legal offers various accounting services, including those surrounding taxes, payroll, shareholder’s meetings, and audits.
Feel free to contact us at [email protected] or using the contact form provided.