The Cabinet has approved the Labor Ministry’s proposal to reduce Social Security Fund (SSF) contributions from employers and employees, to help those struggling financially because of the COVID-19 pandemic.
Labor Minister Suchart Chomklin said the contribution rate will be cut from employers and employees, under Section 33 of the Social Security Act, to 2.5% of monthly salary, down from 5%. Employees under Section 39 of the Social Security Act are also allowed to lower their contributions to 216 baht a month, from 432 baht.
He said the measures take effect from June 1st and run until Aug 31st, 2021. However, the government maintains its contribution of 2.75% of employees’ monthly wages to the fund.
Mr. Suchart said the reduction in contributions is expected to help 481,113 employers reduce expenses by 9.48 billion baht, in addition to helping 11.1 million employees to save the same amount. Meanwhile, the measure under Section 39 is projected to assist around 1.8 million employees to save 1.18 billion baht. (NNT)