Social Security Fund is one of the Labor and Employment Legal Basics in Phuket and Thailand. As in many countries, the solidarity to permit all citizens to have access to the Health system occurs in Thailand. Inflation, new equipment, increase of the population in number and age make necessary some changes in regulation, law to allow the system to continue.
Short History of the Social Security Fund
The Ministerial Regulation No.7 (1995) issued under the Social Security Act B.E. 2533 (1990), Section 33, the maximum wage of the Social Security Fund was set as the basis salary for calculation not exceeding 15,000THB that for the contributions to the Social Security Fund of the insured which has been in force since March 30, 1995, until the present. Therefore it is time to improve it appropriately, to be consistent with the current economic situation, also to comply with the wage ceiling standards of the International Labor Organization.
Social Security Contributions 2024
The Ministry of Labor Announced to adjustment of the ceiling of contributions to the Social Security Fund that according to the Social Security Act B.E. 2533 (1990), Section 33, the Social Security Fund will be increasing from 750 baht per month to 875 to 1,150 baht per month, divided into 3 action phases of effective as follows.
Phase One of Social Security Fund
From 1 Jan 2024 to 31 Dec 2026, the contribution ceiling is 875 baht per month.
Phase Two of Social Security Fund
From 1 Jan 2027 to 31 Dec 2029, the contribution ceiling is 1,000 baht per month.
Phase Three of Social Security Fund
From 1 January 2030 onwards, the contribution ceiling is 1,150 baht per month.
2024 Social Security Fund Effect On The Insured And Employment
This adjustment of the Social Security contribution ceiling is under the Social Security Act (No. 4) B.E. 2565 (2022) which stipulates that the contribution ceiling must be adjusted every three years to reflect the increased cost of living. Amidst the news that the Social Security Fund may be in bankruptcy in the next 30 years.
On one hand, the impact that may occur from adjusting the contribution ceiling this time. It is expected that the insured with incomes of more than 15,000 baht per month must pay increased contributions. On the other hand, this may increase labor costs and may affect the hiring decisions of the business section.
The Insured’s Benefits
The benefits will also increase, such as unemployment compensation which will increase from 7,500THB per month to 8,750 baht per month, including increasing compensation in the case of loss of income due to disability, and increasing payment of time off allowance for maternity. Also, extending the upper age of the insured who are employees from the age of 60 years to the age of 65 years. Those to develop the “Social Security” system to be modern, consistent with the situation, and answer the needs of all groups. To improve the quality of life of the insured persons, the said of the Social Security Office.
Conclusion
Some people will complain about this contribution augmentation but to avoid “privatizing” parts of social security and thus to take some citizens out of social security protection, it is necessary to raise additional finances for social security by increasing the fiscality. This matter is not only legal but also political and ideological.
