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Social Security Registration in Thailand

Social Security Registration in Thailand

Understanding Social Security Registration in Thailand

Social security registration in Thailand is a fundamental requirement for employers, aimed at ensuring comprehensive protection for employees. The system is governed by the Social Security Act B.E. 2533 (1990), which mandates contributions from both employers and employees to provide financial support in various situations such as maternity, death, unemployment, accidents, illnesses, and disabilities occurring outside the workplace

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Who is the social security registration for?

Employers in Thailand who hire even a single employee must complete social security registration with the Social Security Office. This registration must be done within 30 days of hiring the first employee and this process involves submitting two critical forms:

  • Form SSO 1-01: Employer Registration Form, which captures essential details about the employer.
  • Form SSO 1-03: Employee Registration Form, which details each employee’s information.

Whenever a new employee is hired, the employer must submit a new social security registration form if the employee does not already possess a social security affiliation card. This process ensures that all employees, new and existing, are covered under the social security scheme, providing them with essential protections.

What is the process for social security registration in Thailand?

Detailed below are the Steps for social security registration: 

1. Declare Employee Information: Within 30 days of the employment contract, the employer must submit details about their employees, including names and wages, to the Social Security Office.

2. Submit the Required Forms: The employer sends the completed SS0 1-03 form to the Social Security Office.

3. Issuance of Certificates and Insurance Cards: Once the forms are processed, the Social Security Office issues a certificate to the company and insurance cards for all registered employees. This ensures that employees can access social security benefits as needed.

What are the benefits of the social security registration?

There are benefits that come with the  social security registration. People are entitled to several protections, covering a wide range of life events under the social security fund:

1. Non-occupational Accidents or Illnesses:

  • Coverage includes medical examinations, treatments, hospital stays, medications, and other related expenses. Employees can present their social security card at public hospitals to receive subsidized medical care. Additionally, holiday indemnity at 50% of the basic salary is offered for a specified period if certain conditions are met.

2. Disability:

  • In cases of disability, social security provides a monthly allowance of up to THB 4,000, along with a salary continuation allowance equal to 50% of the basic salary for life.

3. Maternity:

  • Coverage includes hospital costs related to childbirth, medical care for both mother and child, medications, and necessary treatments. The coverage limit is THB 13,000, and maternity leave pay is available at 50% of the basic salary for three months.

4. Death Allowance:

  • Designated beneficiaries (such as spouse, children, parents) of a deceased insured person can receive a funeral expense allowance up to THB 40,000.

5. Child Allowance:

  • Insured persons receive lump sum allowances for up to two children under the age of fifteen, covering school fees, medical expenses, and other necessary costs.

6. Old Age Allowance:

  • Members aged 55 and over, who have contributed for over 180 months, are eligible for a pension or lump sum payment.

7. Unemployment Benefits:

  • Employees who have contributed at least six times in the 15 months preceding dismissal can apply for unemployment benefits while actively seeking new employment.

*Note : Individuals who are not employed by a company can also opt for social security coverage by voluntarily notifying the Social Security Office. This allows freelancers, self-employed individuals, and others outside the traditional employment structure to benefit from social security protections. Voluntary contributors are required to pay their social security contributions independently.*

What are the payment and rates?

After the social security registration, the contributions of the social security are divided among the employer, employee, and the government:

  • Disability, Maternity, and Death Allowance: Each (employer, employee, and the government) contributes 1.5%, totaling 4.5%.
  • Child and Old Age Allowance: Contributions are 3% each from employer and employee, and 1% from the government, totaling 7%.
  • Unemployment Benefit: Contributions are 0.5% each from the employer, employee, and government, totaling 1.5%.
  • Total Contributions:
    • Employers and the government each must contribute a portion of the employee’s salary to the social security fund.
      • Maximum contribution: THB 750 (5% of THB 15,000) per month.
    • Employees must contribute 5% of their salary to the social security fund.
      • Maximum contribution: THB 750 (5% of THB 15,000) per month.
    • Employee contributions are withheld from their wages by employers.

For example, if an employee earns THB 20,000 per month, the total contributions for social security would be as follows:

  • Employer Contribution: 5% of the employee’s salary, up to a maximum of THB 750. Since 5% of THB 20,000 is THB 1,000, the employer’s contribution is capped at THB 750.
  • Employee Contribution: Similarly, the employee also pays 5% of their salary, up to a maximum of THB 750. So, the employee contributes THB 750.
  • Government Contribution: The government contributes 4% of the employee’s salary. In this case, 4% of THB 20,000 is THB 800.
    • Thus, the employer and employee each contribute THB 750, while the government contributes THB 800, ensuring comprehensive social security coverage for the employee.

It is important to note that employers must deduct social security contributions from their employees’ salaries each month. These contributions must be submitted to the Social Security Office by the 15th of the following month through check, cash, or online payment methods, ensuring timely and accurate processing.

Is tax deductibility a possibility?

Upon completing social security registration, both employees and employers can benefit from tax deductions related to their social security contributions:

1. Employee Deductions: Employees can deduct their social security contributions from their taxable income. This allows them to lower their taxable income by the amount of their social security contributions when they file their annual tax returns.

2. Employer Deductions: Employers can treat the social security contributions they make as deductible expenses. These contributions can be subtracted from the company’s taxable income, potentially reducing their overall tax liability.

Social security registration in Thailand is essential for ensuring the well-being and financial security of employees. For tailored assistance and detailed guidance, contact Benoit & Partners and ensure compliance and maximize benefits from social security registration.