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Social security fund

               The Social Security Fund (SSF) was established under the Social Security Act B.E. 2533 to bring about security and stability of livelihood for Thai citizens. 
               The Social Security Office, established by virtue of the Act, has duty to manage the SSF for the best interest of all members. The coverage is divided into seven types: sickness, maternity, disability, death, child allowance, old age and unemployment.

Contribution Rates

Conditions

 Government

 Employers

Employees

 1. Sickness

 Every party made a contribution of 1.5% of wage.

 2. Maternity

 3. Disability

 4. Death

 5. Child allowance

 1% of wage

 3% of wage

 3% of wage

 6. Old-age

 7. Unemployment

0.25% of wage

0.5% of wage

0.5% of wage


                                                                                     Note: Base wage used in calculation range from 1,650 to 15,000 baht per month.

              Categorized under the Defined Benefit System, the SSF regulates member benefits at the very outset regardless of the amounts of contributions or returns on investment of any parties. Every employer with at least one employee and all workers except those exempted by the Act such as civil servants, state enterprise employees and private school teachers are required to make equal contributions while the government subsidizes additional levy to the fund.
               Whenever wages are paid, employers must submit the contributed sums to the Social Security Office within the 15th day of the month following the month when the contribution is deducted.


Benefit Payouts
              Benefits paid out to insured persons are of two types:
1. Old-age lump sum paid out under the following conditions:
              (1) Insured person had made consistent contributions for less than 180 months.
              (2) Cessation of insured status.
              (3) Insured persons are fully 55 years of age.
     1.1 Insured persons making consistent contributions for less than 12 months are entitled to benefits equal to their contributions in case of old age and child allowance.
     1.2 Insured persons making contributions for not less than 12 months are entitled to benefits equal to their contributions in case of old age and child allowance plus interest set by the Social Security Office.

2. Old-age pension paid monthly for a lifetime under the following conditions:
              (1) Insured persons had continually made contributions for not less than 180 months.
              (2) Cessation of insured status.
              (3) Insured persons are fully 55 years of age.
     The old-age pension benefit is equal to 20% of the average monthly wage of the last 60 months. Please be noted that the salary base used to calculate must range between 1,650 and 15,000 baht. In addition, for every additional 12 months of contribution above the consecutive 180-month obligation, the benefit will accumulate by 1.5%.

Tax Benefits
             Social Security benefits are tax exempted. 
             Steady saving as it sounds; however, the SSF is unlikely to be a sufficient source of saving if one wants to maintain the same quality of life they are having today after retirement. Therefore, besides SSF, workers should look into other options such as provident funds and retirement mutual funds for additional sources of security.

more details at Social Security Office (available in Thai version only)
last updated date 04/05/2553

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