Social security in Thailand: Explained.

Social security in Thailand is crucial in providing financial protection and support to employees, employers and the self-employed. Managed by the Social Security Office (SSO) under the Ministry of Labour, the system covers a range of benefits, including healthcare, unemployment, maternity and disability. Understanding how Thailand’s social security system works, who must contribute and what entitlements are available is essential for businesses operating in the country and individuals working in both formal and informal sectors.

This article offers an overview of the Thai social security system, outlining key obligations, contribution rates and the benefits available to insured persons.

What is social security in Thailand?

The SSO, a government agency tasked with managing various social security programs, administers Thailand’s social security system. The system’s primary objective is to safeguard workers and their families against financial hardships caused by illness, disability, maternity, unemployment and old age.

Employers and employees are required by the Social Security Act to make contributions to the Social Security Fund every month.

Social security coverage

The social security system in Thailand covers both Thai nationals and certain categories of foreign workers. Eligible employees working in the private sector, including foreign employees with work permits, are generally required to participate in the social security program. However, certain groups such as civil servants, employees of certain government organisations, and employees covered by other specific schemes may be exempted.

Social security contributions

Contributions to the social security system are typically shared between employees and employers. The contribution rates are calculated based on the employee’s monthly wages, subject to a maximum contribution ceiling.

The current contribution rate is 5% of the employee’s salary, subject to a minimum salary base of THB 1,650 and a maximum of THB 15,000. This translates to a minimum contribution of THB 83 and a maximum of THB 750 per month for the employee. Employers also contribute 5%, and the government makes supplementary contributions.

Contributions must be submitted to the SSO within the 15th of the following month.

Social security registration

A Thai-registered company with one or more employees ages 15 to 60 must register and submit their employee’s Social Security Fund application to the Social Security Office within 30 days from the date the employee starts working with the company.

Foreigners legally working in Thailand must also register with the SSO and are entitled to the same benefits as Thai employees.

Insured persons under the Social Security Act

According to the Social Security Act, an insured person is a person who pays contributions which provide entitlement to benefits under the Act.

Insured persons include:

• An employee under Section 33, who is not younger than 15 years of age and not older than 60 years of age.
• To qualify for Section 39, individuals must have contributed under Section 33 for at least 12 months and notify the SSO within six months of leaving their job.
• Any other person who is not an employee under Section 33 or Section 39 may apply to be an insured person under Section 40 by informing the SSO.

What benefits are insured persons entitled to?

An insured person is entitled to receive the following benefits:

• Injury or sickness benefits, including health promotion and disease prevention
• Maternity benefits
• Disability benefits
• Death benefits
• Child benefits
• Old-age benefits
• Unemployment benefits, except for an insured person under Section 39

Injury or sickness benefits

Pursuant to the Social Security Act, an insured person shall be entitled to non-occupational injury or sickness benefits when the employee has paid contributions for not less than three months out of the previous 15 months before the date of receiving medical services.

Benefits for non-occupational injury or sicknesses include:

• Medical examination and diagnosis expenses
• Health promotion and disease prevention expenses
• Medical treatment expenses and rehabilitation expenses
• Expenses for admission to and treatment in medical establishments
• Medicine and medical supplies expenses
• Cost of ambulance services or transportation for patients
• Expenses paid as preliminary aids to an insured person in the case where the insured person has been damaged from medical services
• Other necessary expenses

The insured person shall receive benefits of 50% of the salary when the employee is absent from work for a period of not exceeding 90 days per incident and not exceeding 180 days in a year.

In the case of sickness from a chronic disease, as prescribed in the Ministerial Regulations, the employee is entitled to benefits for more than 180 days but not exceeding 365 days.

Maternity benefits

The employee is entitled to maternity benefits provided that the employee has paid contributions for not less than five months within the last 15 months.

Maternity benefits include:

• Medical examination and prenatal care expenses
• Medical treatment expenses
• Medicine and medical supplies expenses
• Child delivery expenses
• Expenses for admission to and treatment in medical establishments
• Nursery care and treatment expenses
• Cost of ambulance services or transportation for the patient
• Other necessary expenses

If a female employee needs to leave work to give birth, the employee will receive benefits of 50% payment made in a lump sum for a period of 90 days per each occasion.

Each employee is entitled to receive maternity benefits for giving birth not more than two times.

Disability benefits

Insured persons will be entitled to non-work-related disability benefits when the insured person has paid a contribution for not less than three months within the last 15 months.

Disability benefits under Section 70 include:

• Medical examination and diagnosis expenses
• Medical treatment expenses
• Medicine and medical supplies expenses
• Expenses for admission to and treatment in the medical establishment
• Cost of ambulance or transportation for a disabled person
• Physical, mental and occupational rehabilitation expenses
• Other necessary expenses

If the insured person becomes disabled because non-work-related causes, the insured will be entitled to receive benefits for a rate and period as prescribed by the Medical Committee not exceeding 50% of the salary.

If the insured person becomes disabled and such disability is at a severe level according to the Medical Committee’s criteria, the insured will receive 50% of the salary.

Death benefits

If the insured person has died because of non-work-related causes and the insured person has contributed for not less than one month within six months before the death, the individual will receive the following death benefits:

• Funeral expenses not less than 100 times the maximum rate of the daily minimum wage shall be payable to the following persons in respective order:
  • A person whom the insured person specified in writing to be the administrator of his or her funeral and undertook to be the administrator
  • Husband or wife, parents or children of the insured person
  • Other people with evidence of administratorship
• If the insured person did not set it down in writing, the death allowances will be shared equally among the husband or wife, parents or children of the insured person as follows:
  • Before death, if the insured person had made contributions for 36 months or more but less than 120 months, 50% of the monthly wage multiplied by four is paid as an allowance
  • Before death, if the insured person had made contributions for 120 months or more, 50% of the salary multiplied by 12 is paid as an allowance

Child benefits

An employee will be entitled to child benefits if contributions have been paid for not less than 12 months within 36 months.

The insured person will be entitled to child benefits for his/her children of ages not exceeding 15 years old and not exceeding three children at a time.

Child benefits include:

• Children living expenses
• Children tuition fees
• Children medical expenses
• Other necessary expenses

Old age benefits

An insured person aged 55 and above is entitled to old-age benefits if the person has contributed to the fund for not less than 180 months.

The benefit can be made in either:

• Monthly living allowances (superannuation pension)
• Lump sum payment (superannuation gratuity)

Unemployment benefits

An employee is entitled to unemployment benefits provided that the employee has contributed for not less than six months within 15 months before becoming unemployed.

Conclusion

Social security in Thailand is vital in providing financial protection and support to workers and their families, including employees, employers and the self-employed. The system requires monthly contributions of 5% from both employers and employees based on a prescribed salary range. It covers Thai nationals and eligible foreign workers, offering comprehensive benefits such as medical care, maternity leave, disability support, child allowances, unemployment aid, old-age pensions and death benefits.

Understanding the system’s intricacies, including coverage, contributions, benefits and compliance requirements, is essential for both businesses and individuals to navigate the social security landscape effectively. By adhering to regulations and fulfilling their obligations, businesses can help ensure a secure and sustainable social security environment for their workforce.

How Acclime can help your business ensure full compliance with social security

Acclime, a leading corporate services provider in Thailand, can streamline the social security administration process for you. Our team of experts can handle all aspects of social security for your company, from registration and contribution calculations to benefit claims and compliance reporting. With Acclime by your side, you can focus on running your business while we ensure your social security obligations are met efficiently and accurately.