The Social Security Fund (SSF) in Thailand provides essential coverage and financial support across various life situations.
The SSF offers protection in several important areas:
Sickness: Provides financial assistance for medical expenses related to illness or injury.
Maternity: Supports female employees during maternity leave, covering part of their salary.
Disability: Offers financial aid to individuals who are unable to work due to disability.
Child Allowance: Provides support for employees with children, helping with additional family expenses.
Unemployment: Assists individuals who lose their jobs and meet the eligibility criteria, helping them during periods of unemployment.
Old Age: Provides retirement benefits to ensure financial stability in retirement.
Death: Offers financial support to beneficiaries in the event of an employee’s death.
The contribution rate to the Social Security Fund is 5% of the employee's monthly salary, with a maximum contribution of THB 750. Both the employer and the employee each contribute 5%, meaning the total combined contribution is 10% of the salary, capped at 1,500 THB. If an employee has no income during a specific period (e.g., due to leave without pay), no SSF contribution is required for that month.
Social Fund and VAT Contributions
Social Fund: Applicable only for expatriate employees, employers contribute 0.5% of the employee's recurring income.
VAT & Taxes on Payroll Fees: Employers bear VAT at 7% on all payroll fees, including consultant fees, which is particularly relevant for expatriate arrangements.
Example Calculation
For a hypothetical employee with a gross income of 15,000 THB:
SSF Contribution:
Employer: 750 THB (5% of 15,000 THB, capped at 750 THB).
Employee: 750 THB (5% of 15,000 THB, capped at 750 THB).
Social Fund Contribution (if applicable):
Employer: 75 THB (0.5% of 15,000 THB).
VAT on Payroll Fees:
Calculated as 7% of the total payroll fees, including any additional service fees.
For more details on the Social Security Fund, including how to apply for benefits and specific procedures, you can visit the website of the Social Security Office of Thailand.