Thailand

New Year Amendment in Social Security Payment Obligations in Thailand Due to Second Wave of Coronavirus Disease (COVID-19)

By Bhavana Kumar

As the second wave of the Coronavirus (COVID-19) global pandemic crisis hits Thailand, a series of legislative taxation amendments have been enacted.  Effective 1st January 2021, the Thai Social Security Office has reduced employers and employees' contributions to the worker welfare fund for three months (1 January 2021 – 31 March 2021). This deduction is applicable for Thai and expatriate employees currently working in Thailand.  

This temporary measure is intended to reduce financial hardship during the Covid-19 pandemic when many people have either lost their jobs or suffered reduction in salaries with their incomes being plunged into uncertainty.

For Employers, the contribution is reduced from 5% to 3% of salary, with a maximum contribution of THB 450 per month, for January, February, and March 2021.

For Employees insured under Section 33, the contribution is reduced from 5% to 3% of salary, with a maximum contribution of THB 450 per month for January, February, and March 2021.

For Employees insured under Section 39, the contribution is reduced to 278 Baht

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

Mr. X’s salary is THB 15,000. Mr. X contributes THB 450 i.e., 3% of his salary and his Company will contribute THB 450 i.e., 3% of Mr. X’ salary. The total contribution to Social Security is THB 900.

Mr. Y’s salary is THB 10,000. Mr. Y contributes THB 300 i.e., 3% of his salary and his Company will contribute THB 300 i.e., 3% of Mr. Y’ salary. The total contribution to Social Security is THB 600.

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

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