On 26 January 2021, the Thai Cabinet approved a Draft Ministerial Regulation (“Draft”) that reduces the rate of mandatory Social Security Fund contributions for employees between 1 February 2021 and 31 March 2021.
The Draft will revise the Ministerial Regulation re: Determination of Contribution Rates to the Social Security Fund B.E. 2563 (2020) (“SSF Regulation”), which lowered employee and employer contributions from a rate of 5% each to 3% from 1 January 2021 to 31 March 2021.
For employees—insured persons under Section 33 of the Social Security Act B.E. 2533 (“SSA”)—the contribution rate will decrease from 3% to 0.5% of the employee’s monthly salary. However, contribution rates for employers and the government will remain at 3% and 2.75% respectively.
Specifically, reduced rates under the Draft are as follows:
From 1 April 2021 onwards, as described under the SSF Regulation, employee and employer contributions will return to the standard rate of 5% each, while government contributions will remain at 2.75%.
Under the Draft’s reductions, the cap for employee contributions will be THB 75 a month, based on a maximum salary of THB 15,000 per month. After 1 April, the cap for employee contributions will return to THB 750 a month.