As the second wave of Coronavirus (COVID-19) global pandemic crisis hits Thailand and outplacement Thailand, there are a series of legislative taxation amendments being made and, in this case, more than one time in one month.
Effective 26th January 2021, the Thai Social Security Office further reduces employees’ contributions to the worker welfare fund for two months. This deduction is applicable for Thai and expatriate employees currently working in Thailand only.
The ministry decided to cut the contributions starting from February 2021 to March 2021. The temporary measure is intended to reduce people’s financial hardship during the Covid-19 pandemic when many people have been thrown out of work or their incomes plunged into uncertainty.
For employees insured under Section 33, their contribution is reduced from 3% to 0.5% of salary, with a maximum contribution of THB 75 per month for February, and March 2021. Please note the change in the contribution rate 0.5% of their salaries from a reduced rate of 3% previously.
To better understand the calculation, please see the examples given below: –
Mr. X’s salary is THB 15,000. Mr. X contributes THB 75 i.e., 0.5% of his salary and his Company will contribute THB 450 i.e., 3% of Mr. X’ salary. The total contribution to Social Security is THB 525
Mr. Y’s salary is THB 10,000. Mr. Y contributes THB 50 i.e., 0.5% of his salary and his Company will contribute THB 300 i.e., 3% of Mr. Y’ salary. The total contribution to Social Security is THB 350.
Should you require any further information or assistance regarding the contents of this issue, please do not hesitate to contact one of RSM Thailand’s Payroll and Tax Consultants or email us on AskUs@rsmthailand.com