Impact of Coronavirus Disease (COVID-19) on Social Security Payment Obligations in Thailand

By Bhavana Kumar 

As Coronavirus (COVID-19) global pandemic crisis continues to evolve, there are a series of legislative taxation amendments being made around the world and in the Kingdom of Thailand. The Thai Social Security System is introducing several changes to deal with the situation and accommodate employers and employees accordingly. On 23rd March 2020, it was announced that there will be a reduction in Thai Social Security fund contributions for both employers and employees.

For Employers, the contribution was reduced from 5% to 4% of salary, with a maximum contribution of THB 600 per month, for March, April, and May 2020.

For Employees, the contribution was reduced from 5% to 1% of salary, with a maximum contribution of THB 150 per month, for March, April, and May 2020.

To better understand the calculation, please see the examples given below: -

  • Mr. X’s salary is THB 15,000. Mr. X contributes THB 150 i.e. 1% of his salary and his Company will contribute THB 600 i.e. 4% of Mr. X’ salary. The total contribution to Social Security is THB 750.
  • Mr. Y’s salary is THB 10,000. Mr. Y contributes THB 100 i.e. 1% of his salary and his Company will contribute THB 400 i.e. 4% of Mr. Y’ salary. The total contribution to Social Security is THB 500.

This reduction will be valid for three months i.e. from March to May 2020.

The deadlines for payment of monthly Social Security Fund (“SSF”) contributions for March, April, and May 2020 have been extended to three months.

  • The SSF contributions for the month of March 2020 must be paid no later than 15th July 2020.
  • The SSF contributions for the month of April 2020 must be paid no later than 15th August 2020.
  • The SSF contributions for the month of May 2020 must be paid no later than 15th September 2020.

If you have contributed an excess amount to the Social Security Office for the month of March 2020 due to the delay in the announcement being received and the payroll already having been processed, (already deducted 5% for Employers and Employees), you can still claim the excess back from the Social Security Office.

Should you require any further information or assistance regarding the contents of this issue, please do not hesitate to contact one of RSM Thailand’s Payroll and Tax Consultants or email us on [email protected]