Compensation Schemes for Social Security Assistance
The cabinet of ministers has approved the compensation scheme for the secured employer and employee according to Section 33 on July 20, 2021. The Social Security Office (“SSO”) has been allocated this compensation as part of the Royal Decree that authorizes the Ministry of Finance to lend capital to solve a problem, alleviate, and regenerate the economy and society that has been affected by the COVID-19 pandemic.
This compensation will be given to employers and employees affected by the COVID-19 lockdown measures under the conditions as follows:
- It is limited to the workplace in 13 provinces (i.e., Bangkok Metropolis, Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon, Narathiwat, Pattani, Yala, Song Khla, Cha Choeng Sao, Chon Buri, and Phra Nakhon Si Ayuttaya).
- It is limited to only 9 business operations (i.e., construction, hospital and food, art, entertainment and recreational, other services, transport and product inventory, wholesale and retail, vehicle repair, management and occupational support, science and academic, news, and telecommunication).
In this respect, the secured person under Section 33 of the Social Security Act B.E. 2533 could verify their rights through the SSO’s website.
Benefits to Employer
- Receives THB 3,000 compensation per employee with a maximum of 200 employees
- Transfers the compensation by August 6, 2021, to the employer’s bank account that registered with the SSO.
Benefits to Employees under Section 33
- Receive compensation of THB 2,500 under the following criteria:
- the workplace is still operational; and,
- an employee is of Thai Nationality.
- Receive compensation of THB 2,500 and additional compensation of 50% of their wages up to THB 7,500 under the following criteria:
- an employee is of Thai Nationality;
- the workplace is closed due to COVID-19 lockdown measures without payment of wages;
- contributed to the social security fund for at least 6 months during the past 15 months.
- The compensation will be transferred by August 6, 2021, via PromptPay into the personal bank account of the employees as registered by identification card number.
This compensation scheme is a much-needed boost to the struggling Thai economy. It may not be the ultimate solution to the problem, but it alleviates the struggle and financial difficulty of both the employers and employees in the affected areas. If the spread out of COVID-19 continues to worsen, there is a high likelihood that the government may need to issue another batch of compensation. We will continue to monitor the COVID-19 situation and provide updates on any further developments.