Social Security
The Social Security Act requires employers and employees to make contributions to the Social Security Fund on a monthly basis. The Social Security Fund is administered by the Social Security Office a division of the Ministry of Labor and Social Welfare.
From July to December 2009, non-exempted permanent full-employees between 15 and 60 years of age are required to make contribution to the fund. The employees' contributions are withheld by the employer as part of the payroll process. A separate contribution of an amount equal to the employees' contribution, is made by the employer.
The current employee contribution rate for the period July to December 2009 is 3% of pre-tax base salaries, capped at a maximum of 450 Baht per month. (6%, 900 Baht considering both employer and employee contributions)
From January 2010, the contribution rate will revert its historical levy of 5%, capped at a maximum of 750 Baht per employee. (10%, 1,500 Baht considering both employer and employee contributions)
The social security contributions due are payable on a monthly basis, by the 15th day of the subsequent month.
Employers are required to register new employees with the fund within 30 days of the commencement of their employment. Certain types of employees may not be eligible or may be exempted for membership. These include those aged 60 years or above, salespeople employed on a commission basis and newly-applying company directors.
Personal and corporate income tax deductions are available to the employee and employer for their respective contributions to the fund.
Social Security Fund Membership provides various benefits upon hardship as categorized below:
1. Non-occupational Injury or Sickness
Injury and sickness benefits include partial or full cover of the costs of medical examinations, medical treatments, hospital lodgings and meals, medicine and medical supplies, ambulance and transportation and other necessary expenses where prescribed or approved by the Fund's Medical Committee. Members are issued with a social security card that they may present at a nominated government hospital to receive subsidized medical care. Income replacement compensation at 50% of base wages is available to qualifying members.
2. Maternity
Maternity benefits are available for members and their spouses including partial or full cover of the costs of medical examinations, treatments and child bearing expenses, medicine and medical supplies, confinement expenses, lodging and meals, infant nursing and treatment expenses, ambulance and transportation and other necessary expenses where prescribed or approved by the Fund's Medical Committee. A leave allowance is available to qualifying members at 50% of basic wages.
3. Non-work Related Invalidity
Invalidity benefits including partial or full cover of the costs of medical examinations, treatments medicine and medical supplies, in-patient, meals and treatments, ambulance and transportation, physical, mental and occupational rehabilitation and other necessary expenses where prescribed or approved by the Fund's Medical Committee. Income replacement compensation at 50% of basic wages is available to qualifying members.
4. Death Benefits
A funeral allowance can be claimed by the spouse, children, parents or other nominated beneficiaries of a qualifying deceased member.
5. Child Benefits
Members are entitled to prescribed benefits for up to two children under 15 years of age to cover living expenses, tuition fees, medical and where applicable other necessary expenses of their children.
6. Old Age Benefits
A pension or lump sum payout is available to non-working members aged 55 years or older whose contribution periods exceed 180 months.
7. Unemployment Benefits
Members with contribution periods exceeding 6 months in the 15 months prior to being unemployed are entitled to are entitled to unemployment benefits for the duration of the period that the member is actively seeking employment.
The above benefits are conditional upon duration of the membership of the fund and the regulations of the Social Security Office and the Ministry of Labor and Social Welfare.
More information can be found at the website of the Social Security Office
http://www.sso.go.th