On 28 May 2021, the Ministry of Labour issued a Ministerial Regulation to reduce social security contributions by employers and employees. The temporary measure has been introduced in an effort to ease financial burdens amidst the latest COVID-19 outbreak in Thailand.
The approved reduction rates will be in effect from 1 June 2021 to 31 August 2021. The applicable rates are outlined below, alongside a comparison to the regulations prior to and following the reduction period.
Earlier this year, Mahanakorn Partners Group issued an article on the Thai Cabinet’s approval of similar reductions implemented from January 2021 – April 2021. This, along with the most recent announcement suggests that the Thai government may extend these reductions if businesses continue to suffer serious financial detriment in the wake of the pandemic.