FAQ about Social Security in Thailand | MBMG GROUP
Q1: Who needs to register for social security?
A company with one or more employees is required to register itself as an employer and its employees with the Social Security Office within 30 days of employment in accordance with the Social Security Act.
Foreigners working in Thailand must also register with the Social Security Office and thus are entitled to the same benefits as Thai employees.
In addition, when hiring a new employee, an employer must register a new employee within 30 days of employment as well. When an employee resigns, an employer must notify the resignation by specifying the reason for resignation using the letter of termination of insured status (SorPorSor 6-09) within the 15th of the following month.
Business owners can use the 13-digit corporate number to register employees/insurers when hiring employees within 30 days of employment at the Social Security Office.
Q2: Is social security mandatory in Thailand?
Employers and employees are required by the Social Security Act to submit their contributions to the Social Security Fund monthly.
Offenses are punishable by imprisonment for not more than 6 months or a fine of not more than 20,000 baht, or both.
Q3: What needs to be done after completing the social security registration?
An employer must submit the social security contributions on a monthly basis to the Social Security Office in the area where an employer is registered.
Contributions are divided into two parts:
1st part: Contributions deducted from an employee’s salary.
2nd part: Contributions contributed by an employer, which has the same amount as the 1st part.
An employer will prepare the SorPorSor 1-10 form and submit it together with the contributions (including 1st part and 2nd part) to the Social Security Office in the area no later than the 15th of the following month.
Q4: How to calculate the social security contributions?
All employees are required to contribute to a Social Security Fund an amount equal to 5% of their salary, up to a maximum contribution of 750 baht per month.
Calculation example:
If an employee’s salary is 18,000 baht (calculated from the base salary of not more than 15,000 baht), the contribution to be submitted is 5% which is equal to 15,000 X 5% = 750 baht, plus the contribution from an employer with the same amount, making a total of 750 + 750 = 1,500 baht.
Foreign workers must register with the Social Security Office and submit the monthly contributions to the Social Security Fund. Please note that foreign workers are entitled to the benefits only when they are legally registered for social security.
Foreign workers who want to register for social security must possess the following qualifications.
- Must be a worker with a passport or an identity document, which can be used in place of a passport, and a work permit.
- Proof of nationality is required. Additionally, a worker must have a temporary passport or a certificate of identity and a work permit.
- If it is the case of a foreign worker who fled to Thailand but was granted a waiver to be able to work temporarily, when sick or injured at work, a foreign worker must immediately notify the Social Security Officer in order for an employer to pay compensation which will receive the same amount as Thai workers.
One of the benefits that business owners will receive from social security is “Building Confidence in Business” when employees are deciding to take a job. It also helps to prevent employees from leaving for the long term because they can be confident that the business is committed to improving their quality of life.
Disclaimer: The above information has not been independently verified. This investment brief is given for information only and does not represent an investment proposal, recommendation or advice to invest in the shares or business of the subject company. Additional information shall be made available to interested parties subject to the execution of the requisite confidentiality undertakings. The financial information, actual and/or forecast, provide herein is based on management representation.