Possible Enhancing Social Security Fund Contributions for Sustained Coverage and Benefits

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Possible Enhancing Social Security Fund Contributions for Sustained Coverage and Benefits

The Social Security Act B.E. 2533 (1990) stipulates that contributing to the Social Security Fund grants employees access to a range of benefits and coverages, offering financial protection from the commencement of employment until the insured person’s passing. The benefits encompass accident and illness coverage, medical benefits, child and maternity welfare, disability and death compensation, as well as provisions for unemployment and retirement pensions. Complying with this payment requirement is mandatory as per the law under the Social Security Act B.E. 2533 (1990).

Under the provisions of the Social Security Act B.E. 2533 (1990), individuals eligible for the Social Security Fund fall into three distinct categories:

  • Section 33: Pertaining to employees aged 15 to 60 years old, working in Thailand.
  • Section 39: Applicable to employees who have contributed for not less than 12 months, subsequently ceasing employment but desiring to continue contributions and receive benefits.
  • Section 40: Encompassing individuals not classified as employees under Sections 33 and 39.

Amid global apprehensions about the potential depletion of the Social Security Fund, there is concern that insured individuals may not receive the funds they are entitled to within the next 30 years. However, the Ministry of Labor affirms the stability and security of the Social Security Fund. It advocates for an increase in the monthly contribution wage for insured persons under Section 33, effective from February 28, 2023, achieved by revoking Ministerial Regulations No.7 (B.E. 2538 (1995)) issued under the Social Security Funds Act B.E 2533 (1990).

Consequently, the draft of Ministerial Regulation Determining the Minimum and Maximum Rate to Calculate the Contribution Basis to the Social Security Fund B.E. …. (“the Draft of Ministerial Regulation”) proposes a gradual increase in the minimum and maximum amount used as the basis for calculating contributions, alongside adjustments to the social security fund payments for insured persons under Section 33 as summarized as follows:

  • Current Stage: The wage cap ranges from 1,650 THB to 15,000 THB, with insured persons earning over 15,000 THB required to pay 750 THB per month to the Social Security Fund.
  • First Stage: From January 1, 2024, to December 31, 2026, the wage cap ranges will be between 1,650 and 17,500 THB, with insured persons earning over 17,500 THB required to pay 875 THB per month to the Social Security Fund.
  • Second Stage: From January 1, 2027, to December 31, 2029, the wage cap ranges will be between 1,650 and 20,000 THB, with insured persons earning over 20,000 THB required to pay 1,000 THB per month to the Social Security Fund.
  • Third Stage: Commencing from January 1, 2030, the wage cap ranges will be between 1,650 and 23,000 THB, with insured persons earning over 23,000 THB required to pay 1,150 THB per month to the Social Security Fund.

Moreover, the proposed adjustments extend to the coverages and benefits provided to insured persons, including an increase in illness coverage from 250 THB per day to 383 THB per day, unemployment remedy from 7,500 THB per month to 11,500 THB per month, and death compensation from 30,000 THB to 46,000 THB.

The proposed changes in contributions and benefits as specified in the Draft of Ministerial Regulation aim to sustain the stability and adequacy of the Social Security Fund, ensuring that insured persons continue to receive comprehensive coverage and support in alignment with evolving economic and social dynamics.

Author: Panisa Suwanmatajarn, Managing Partner.

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