Thailand

The social security in Thailand is regulated by a law of 1990 implemented in 1991 and later in 1998. It provides for a social insurance system.

The system covers all employees aged between 15 and 60. Judges, civil servants, employees of state enterprises and employees of private schools are covered by special systems. Employees of foreign governments or international organizations, agricultural, forestry, and fishery employees, temporary and seasonal workers and Thai citizens working abroad are excluded from the system. Voluntary coverage is available for self-employed persons and for persons who cease to be covered after at least 12 months of compulsory coverage.

Funds are contributed by the insured person, the employer and the Government in the following proportions: (i) Insured person: 3% of gross monthly earnings; (ii) Employer: 3% of monthly payroll; and (iii) Government: 1% of gross monthly earnings. The minimum monthly earnings used to calculate contributions are 1,650 baht (approximately USD 55). The maximum monthly earnings used to calculate contributions are 15,000 baht (approximately USD 500).

The insured person is allowed to make an annual flat-rate voluntary contribution of 3,360 baht (approximately USD 110). Voluntary contributions finance disability, survivor, and maternity benefits (but not old-age pension).

In case of self-employed persons, they can make an annual flat-rate contribution of 3,360 baht (approximately USD 110) to finance disability, survivor, and maternity benefits (but not old-age pension).

The old-age pension is available at age 55 with at least 180 months of contributions (but pension may be deferred). Employment must cease. If a pensioner starts a new job, the pension is suspended until the end of employment.

An old-age settlement is available at age 55 for those persons with at least 1 month, but less than 180 months of contributions. Employment must cease.

The old-age pension is 20% of the insured’s average monthly wage in the last 60 months before retirement. The minimum monthly earnings used to calculate benefits are 1,650 baht (approximately USD 55). The maximum monthly earnings used to calculate benefits are 15,000 baht (approximately USD 500).

If the insured person had more than 180 months of contributions at the pensionable age, he is entitled to receive an old-age pension increment. In such case, the old-age pension is increased by 1.5% of the insured’s average monthly wage in the last 60 months for each 12-month period of contributions exceeding 180 months.

In case the pension is deferred, the old-age pension is increased by 1.5% of the insured’s average monthly wage in the last 60 months for each 12-month period of contributions exceeding 180 months.

The system is administered by the Ministry of Labor (http://www.mol.go.th), which provides general supervision and the Social Security Office (http://www.sso.go.th), that collects contributions and pays benefits.

 

Source:Social Security Programs Throughout the World: Asia and the Pacific, 2010, available at http://www.ssa.gov/policy/docs/progdesc/ssptw/2010-2011/asia/index.html

 

 
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