Social Security

Social Security Fund

The Social Security Fund is a fund providing security and coverage for the employees who shall receive compensation in case of injury, sickness, invalidity and death not caused by employment. The coverage also includes maternity, child allowance (up to 6 years old), old-age (≥ 55 years old) and unemployment. A company Director is not subject to Social Security.

Social Security contributions are paid monthly and both the employer and the employees contribute to the fund. The contributions are equal to the monthly gross salary times 5% but capped at THB 750 / employee / month. The minimum contribution is THB 83 / employee / month. 

Let’s say you have an employee with a monthly gross salary of THB 25,000. The contribution shall be THB 750 to be deducted from the employee’s salary and THB 750 paid by the company. Therefore, the total contribution per employee is maximum THB 1,500 / employee / month. If your employee’s salary is THB 15,000 or more, you reach the THB 750 cap.

Workmen’s Compensation Fund

It is the fund paying compensation to employees to replace the employer’s liability when the employees are injured, sick, dead or disappeared as a result of their work for the employer, regardless of date, time and place. Causes of injuries or sickness will be considered instead.

The annual contribution paid by the employer is equal to the total annual wages of all employees (but capped at THB 240,000 / employee / year) times the contribution rate ranging from 0.2% to 1% depending on the industrial classification of your business. For instance, the rate for an accounting firm is lower than the one for a car manufacturer since there is a lower risk of injuries at work.

Let’s say you run a digital marketing agency and employs 8 people with an average salary of THB 35,000 / month. The annual contribution shall be: THB 240,000 * 8 * 0.2% = THB 3,840.

Submission & Penalties

Contributions to the Social Security Fund are submitted within the 15th of each month and the Workmen’s Compensation Fund’s contribution is paid in advance within January 31st each year. For the first year, it is paid within 30 days from the date on which the company hires its first employee.

The annual contribution to the Workmen’s Compensation Fund is calculated on the estimated total annual wages and submitted at the beginning of the year. The following year, the company must then submit the actual total annual wages within the end of February for the previous year and shall pay an additional contribution (if actual wages > estimated wages) or get a refund (if actual wages < estimated wages) within the end of March.

The penalty for late submission of the Social Security Fund’s contributions is a surcharge of 2% of the amount due per month. As for the Workmen’s Compensation Fund, the surcharge is 3% of the amount due per month.