PROVIDENT FUNDS
A provident fund is a type of superannuation fund that employers and employees jointly establish and register according to the Provident Fund Act B.E. 2530 (A.D. 1987). It consists of money contributions made by the employees and their employer, including money and interest on money or other property donated to the fund. It is managed by independent securities firms approved by the Ministry of Finance. A provident fund provides security from the fund for an employee in case of death, retirement, or termination or resignation from employment.
The employee’s contribution may not be less than 2% nor more than 15% of his/her wages. The employer’s contribution must not be less than the employee’s contribution. A provident fund is not mandatory. However, according to the Act, once a fund is established it must be registered.
EMPLOYEE WELFARE FUND
Under the Labor Protection Act, the employees of a business operation having ten or more employees must be members of the Employee Welfare Fund. The Employee Welfare Fund has the same objective as the provident funds, which is to provide financial security for the employees in case they resign or retire from work and for their beneficiaries in case they die, or in other cases as prescribed by the Employee Welfare Fund Committee. This fund is mandatory. However, if the employer has a registered provident fund or provides welfare for the employees in case of their resignation or death in accordance with the rules and procedures prescribed in the Ministerial Regulations, it is not required by law to set up the Employee Welfare Fund.
The employee’s and employer’s contributions will be in accordance with the rates prescribed in the Ministerial Regulation, but not exceeding 5% of the employee’s wage. The Employee Welfare Fund is to be established and managed by the Employee Welfare Fund Committee upon enactment of a respective Royal Decree, which has not yet been issued.
SOCIAL SECURITY
An employer with one or more employees must register and contribute to the Social Security Fund. Upon registration, employees will become “insured persons” entitled to benefits provided under the Social Security Act. The Social Security Act requires that the government, employers, and employees contribute to the Social Security Fund at the rates prescribed by law. At present, both employers and employees each make monthly contributions at the rate of 3% of the employees’ wages, while the government contributes at a rate of 2%.
The Social Security Act does not cover government officials, employees of foreign governments and international organizations, employees working in foreign countries for Thai firms, teachers at private schools, students who work for schools, universities, and hospitals, and other types of employees according to royal decree. House servants are also specifically excluded from the definition of employee under the Act.
Compensation and Benefits
- Injury or illness not work-related (work-related injury or illness is covered by the Workmen’s Compensation Fund).
- Maternity.
- Disability not work-related (work-related disability is covered by the Workmen’s Compensation Fund).
- Funeral–death not work-related (work-related death is covered by the Workmen’s Compensation Fund).
- Child welfare.
- Old age.
Self-inflicted injuries and suicide are excluded from coverage under the Act.
Workmen’s Compensation
An employee who sustains injury or sickness or who disappears or dies during performance of his/her duties (work-related) is entitled to receive workmen’s compensation. Unless exempt by the Workmen’s Compensation Act B.E. 2537 (A.D. 1994) and the Notification of Ministry of Labor and Social Welfare Re Types, Sizes of Businesses, and Localities where Employers are Required to Make Contribution (No. 2), an employer who has one or more employees must register for and contribute to the compensation fund once a year.
The rate of contribution is assessed at between 0.2% to 1.0% exactly of employees’ annual earnings, depending on the risk classification of the employer.
An employee who suffers injury or illness during performance of his duty is entitled to reimbursement for the cost of medical treatment, funeral expenses, and compensation.
参考
Section 5 Contribution
Article 44 The Minister of Labour and Social Security Welfare shall announce and designate the category and dimension of business and locality where the employer shall pay contribution.
The employer who has duties to pay contribution under the first paragraph, shall submit the form of payment of contributions and the statement specifying names of employees as prescribed by the Secretary-General, and shall pay contributions at the Office where the employer submit forms of registration of payment of contributions within thirty days as from the date on which the employer is required to pay contributions.