What Employee Social Security System Applies to the New Company in Thailand?
There is no doubt to say that company registration in Thailand is pretty simple. Even if you are a foreigner and want to set up a business in Thailand, you will find the entire process convenient to follow.
It requires assigning a unique name to the company and then completing the registration process with the government offices. You may also have to frame a panel of directors for the company in which a Thai resident must be present. Once the registration process is over, you can start hiring employees for your new company.
Social Security System Applicable to Employees in Thailand:
While hiring employees for your new business in Thailand, you should get enough information about the social security protocols followed in the country. The government has planned some specific rules to assist employees and employers with costs of medical care, lost wages, child allowance that may be caused by unemployment, old age, death, incapacitation, maternity and illness.
The employers are responsible for registering all their new employees with the government authorized social security office in the area. They also need to take care of the submission of social security taxes. Note that the government provides a contribution of 32.75% for funding social security system, whereas 5.184 baht must be provided by the employees and employers. The specified rate for employee contribution for social security funds is 3% of the pay.
So many benefits are provided under this system, few of them are listed below:
Old age benefits:
Those individuals that have contributed to the Social Security Fund during their work tenure and have stopped working after the age of 55 years, they can receive old-age benefits from the government. The eligible individuals are allowed to receive some monthly pension or lump-sum payment depending upon the contribution they have made in the entire life.
In order to receive pension benefits as per Social Security System of Thailand, the employees must be either aged between 15 to 60 years, maybe working for their employer after crossing the age group of 60 or cannot be employees but maybe volunteering for some activities.
Workers that have made a considerable contribution to the Social Security System of Thailand for almost 12 out of total 36 months are eligible to enjoy some child benefits after having a child. They can receive 350 baht per month for a child.
When an employee who is ensured by the Social Security System of Thailand dies, the designated beneficiaries can receive death benefits. But it is possible only if the death was caused by some work unrelated factors and the insured employee has made almost one-month contribution out of six before his death. The survivor benefits can range up to 60% of the last month salary of the decedent, and it may not exceed above 15000 baht.
Every employer should know about these rules and regulations before company setup in Thailand. It may help you to run normal operations in the country in all circumstances.