The Skill Development Promotion Act.

Companies employing more than one hundred employees are required by law to consider the Skill Development Promotion Act. This act has set out to improve the skill standard of labour force in Thailand and further promote and support its professional skill training (further backed up and co-financed by the associated Labour Skill Development Fund).

Private businesses and educational institutions are incentivised by the act in the same way as businesses are in regard to the employment of disabled persons. For example, when a private business takes part in the scheme and provides occupational training (endorsed by the act) to its stuff, it will be eligible for certain privileges and benefits. The act, moreover, says that the training should be organised on a yearly basis and provided to at least 50% of the company employees.

On the other hand, businesses that decide to pass on this labour skill development project are required to make a contribution to the fund before March of the following year. Exceptions to this rule are employers who are:

  • A ministry, department, or government agency
  • A foundation or a charitable/non-profitable organisation
  • Focusing their business on activities related to cultivation, planting, fishing, forest, animal husbandry or salt farming, who doesn’t employ an employee for a whole year; and who doesn’t have any other business activities

As of right now, the contribution to the Labour Skill Development Fund amounts to 1% of the current legal minimum hourly wage of the past calendar year (currently 300 THB) * 30 * 12 * the number of untrained employees.

Failure to do so is punished by imposing an additional penalty of 1.5% of the outstanding amount per each month of the delay until the contribution is made in full.

Businesses employing less than 100 employees (absolutely or on average) must merely report the number of their employees, but are not required to make a contribution to the Labour Skill Development Fund.

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