Thailand Social Contributions Guide

Social Security Office (SSO) — สำนักงานประกันสังคม

• Employee contribution — 5% (capped at THB 750/month): The employee contributes 5% of the monthly salary. The salary ceiling for contribution calculation is THB 15,000 per month. The maximum monthly contribution is THB 750 (THB 15,000 × 5%). The contribution is deducted from the salary and remitted by the employer.
• Employer contribution — 5% (capped at THB 750/month): The employer contributes 5% of the employee's monthly salary, also capped at THB 15,000 salary — max THB 750/month per employee. The employer remits both shares to the SSO each month.
• Government contribution — 2.25%: The government contributes 2.25% of the salary (capped at THB 15,000) to subsidise the SSO funds. The total contribution per employee per month is up to THB 1,837.50 (employee 750 + employer 750 + government 337.50).

The Three SSO Funds

• Pension Fund (Old-Age Fund): Provides the old-age benefits — the lump-sum payment or the monthly pension after 15+ years of contributions. The employee may withdraw the lump sum at the age of 55. The contribution rate allocated to this fund is approximately 3% of the salary (shared among the employee, the employer, and the government).
• Health Fund (Medical Fund): Covers the medical expenses, the hospitalisation, the maternity care, the disability benefits, and the child allowance. The health fund allocation is approximately 1.5% of the salary. The insured person receives the free medical treatment at the SSO-contracted hospitals.
• Unemployment Fund: Provides the unemployment benefits — up to 50% of the salary for up to 180 days (if the employee is dismissed) or up to 90 days (if the employee resigns). The unemployment fund allocation is approximately 0.5% of the salary.

For example: an employee earning THB 50,000/month contributes THB 750/month (5% of THB 15,000 cap). The employer matches THB 750/month. The government adds THB 337.50/month. The total SSO contribution is THB 1,837.50/month.

33 Coverage Categories

The Social Security Act B.E. 2533 (1990) and its amendments cover 33 categories of insured persons under Section 33 (employed persons), Section 39 (voluntary insured persons who previously worked), and Section 40 (self-employed and informal workers). The Section 33 employees receive the full coverage across all 3 funds. The Section 39 members pay a reduced contribution for the limited coverage. The Section 40 members may choose from the optional packages.

Provident Fund — กองทุนสำรองเลี้ยงชีพ

• Optional private-sector retirement vehicle: The provident fund is a defined contribution plan established by the employer. The employer may choose to set up a provident fund registered with the Securities and Exchange Commission (SEC). The participation is voluntary for both the employer and the employee.
• Contribution rates: The employee contributes 2% to 15% of the salary. The employer must contribute at least 2% (with the minimum equal to the employee's rate if the employee contributes more than 2%). The total contributions are invested in the fund's portfolio managed by the licensed asset management company.
• Tax benefits: The employee contributions are tax-deductible up to 15% of the income (capped at THB 500,000 per year combined with the RMF and the other retirement savings). The employer contributions are tax-deductible as the business expense. The investment returns are tax-free within the fund.

FAQs

Are foreign workers covered by the SSO?

Yes. The foreign workers employed in Thailand under the valid work permits are covered by the SSO under the same rules as the Thai employees — 5% employee contribution capped at THB 750/month.

Can the SSO contributions be refunded?

The employee who leaves Thailand permanently or reaches the age of 55 may apply for the lump-sum refund of the old-age fund contributions. The health and unemployment fund contributions are non-refundable.

What happens to the provident fund when leaving the employer?

The employee may transfer the provident fund balance to the new employer's fund, roll it over to the RMF (Retirement Mutual Fund), or withdraw the lump sum (subject to the withholding tax if withdrawn before the age of 55 or before the fund's maturity).