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Thailand introduces new rates for Social Security Fund contributions

Thailand’s Minister for Labour has announced a new regulation relating to Social Security Fund (SSF) contributions. The Ministerial Regulation in relation to Fixing Rates of Social Security Fund Contributions B.E. 2564 (2021) was issued on September 27th, 2021. This regulation has been retrospectively enforced from September 1st, 2021 onwards.

What is the current scope of regulations relating to Blockchain in Thailand today?

Section 33 of the Regulation states that the Government, employer, and the employee, shall make contributions to the Social Security Fund for payment of compensation in relation to injury, sickness, disability, death, child delivery, child welfare, old age and unemployment.

What are the new SSF contribution rates?

The Regulation introduces the new SSF Contribution rates across 2 phases:

Phase 1:

The following rates of contribution are in effect from 1 September 2021 until 30 November 2021.

Type of Contribution	Rates of Contribution (% of wage)
Contributions for payment of compensation in relation to; injury, sickness, disability, death and child delivery.	Government: 0.5 Employer: 0.5 Employee: 0.5
Contributions for payment of compensation in relation to; child welfare and old age.	Government: 1 Employer: 0.95 Employee: 0.95
Contributions for payment of compensation in relation to; unemployment:	Government: 0.25 Employer: 0.5 Employee: 0.5

Phase 2:

From 1 December 2021 onwards, the following contribution rates will be in effect.

Contributor	Rates of Contribution (% of wage)
Contributions for payment of compensation in relation to; injury, sickness, disability, death and child delivery.	Government: 1.5 Employer: 1.5 Employee: 1.5
Contributions for payment of compensation in relation to; child welfare and old age.	Government: 1 Employer: 3 Employee: 3
Contributions for payment of compensation in relation to; unemployment:	Government: 0.25 Employer: 0.5 Employee: 0.5

*Please note: SSF contributions are capped to a maximum of 375 THB for employees and 375 THB for the employer. Therefore, total SSF contributions are capped to a maximum for 750 THB (excluding Government contributions) per month.

How do these changes affect the hiring of employees in Thailand?

Thailand remains one of the most competitive countries for hiring employees. The Social Security Fund contribution being capped at 375 THB for an employer essentially means there is no extra cost for hiring someone.

However, employers should be aware of their duties in relation to an employee’s Income Tax. An employee’s Income Tax contributions are directly withheld at the source by the employer every month. It is also the employers duty to deduct and forward this withheld contribution to the Revenue Department by the 7th day of the following month.

For more information about compliance requirements for an employer hiring an employee, you can read our ebook on ‘Post Employee Requirement Compliance Toolkit for Thailand’ can be found here.

How can Belaws help?

To see how these new changes to SSF contributions may affect your business, why not double check your accounting and tax procedures with our accounting expert?

To ensure your business remains compliant with those requirements, Belaws’ expert accountant offers a free audit of your accounting and tax practices. To book your free audit, please click here.

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