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Payment of benefits to employees upon membership termination

            The fund articles must include provisions regarding the payment of benefits to employees upon membership termination. Under all circumstances, members are always entitled to the whole sum of their contributions and accrued benefits attributable to their own contributions. However, entitlement to the employers' contributions and benefits derived from this part is determined as stated in the fund article. This is called "the vesting rule". In case of no specific requirements, members have the right to receive the whole sum.
  • Conditions upon attainment of the employer's contributions and its benefits
              The fund article contains the vesting rule which may be based on the employment period or the membership period.

               Example
               Employment Period                              Entitlement to the employer's contributions and benefits 
               Less than 1 year                                    10%
               1 - 5 year                                                  50%
               More than 5 years                                  100% 

               The specified period should not be prolonged in such a way that may impede members' attainment to the full amount. 

               The provident fund database shows that almost 100% of provident funds registered in Thailand require a period of 10 years or less for members to obtain the full amount of the employer’s contribution and its benefits depending on period of employment or membership. Less than 5% stretch the mandatory period to more than 10 years.
  • Grounds for deprivation of rights on the employer's contribution and its benefits
             The fund articles may specify causes for deprivation of rights on the employer’s contribution and benefits on the grounds of frauds, disciplinary violations, and critical negligence and etc.
  • Prohibition to transfer the unpaid amount
             The fund articles may prescribe a specific period in which members can take the whole sum of benefit payout. However, it is not allowed to prescribe in the fund article that the unpaid amount will be transferred to any person.
last updated date 07/06/2553

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