Worker contribution hike still in pipeline

[webfact]

Worker contribution hike still in pipeline

By THE NATION

 

 

 

Government says there is too much confusion over social security payments and people must be educated about the need for change.

 

PRIME MINISTER Prayut Chan-o-cha yesterday said new rates for employees’ Social Security Fund (SSF) monthly contributions for the highest earners would not be introduced yet because officials wanted to fully educate people about why the increase was needed.

 

Prayut’s comment followed the Social Security Office (SSO)’s announcement that it planned to next year increase contributions to Bt750 for those earning under Bt16,000, Bt800 for those earning from Bt16,000 to Bt16,999, Bt850 for those earning Bt17,000-19,999 and Bt1,000 for those earning over Bt20,000. 

 

SSO chief Dr Suradech Waleeitthikul said the highest contributions would only come into effect for those earning more than Bt20,000 as opposed to the current threshold of Bt15,000, and these represent just 15 per cent of workers. 

 

In the long term, he said, people paying the higher contributions would benefit because after paying the new rate for 35 years, those earning more than Bt20,000 a month would receive a pension equal to half their working wage, or Bt10,000 per month. Their employers’ contribution would also increase accordingly, he added. 

 

He cited a 2016 survey of 1,700 subscribers, which revealed that 81 per cent of respondents supported the increase while an online poll by the SSF website also showed 77 per cent support and 70 per cent of employers backed it. 

 

Suradech said the idea had not been introduced because the SSO needed to raise cash because the fund still had Bt1.7 trillion in its coffers.

 

Employers Confederation of Thai Trade and Industry vice president Tanit Sorat said the contributions hike could be good for employees but he did not have all the details on hand to offer a detailed comment. 

 

He was also sceptical about the new rates being introduced within three months as the SSO board would have to first approve all the changes and the Wage Committee would have to discuss it.

 

Atthayuth Leeyavanich from the Employers Confederation of Thai Commodity Trade and Service agreed with the increases.

 

He said the SSO needed more money to continue beyond 20 years – the number of years he believed its fund would last with the current rate of contributions as there were a lot of compensations and benefits to pay out. 

 

The increases were not great, he said, but they would nonetheless benefit the employees in the long term. He called for the details to be further discussed, plus consultation with experts, before the changes are implemented.

 

Following another SSO board meeting on child support benefit yesterday, Suradech said they agreed to adjust the child support allowance from Bt400 a month to Bt600 a month for children aged up to six years old for up to a maximum of three children. 

 

The new rates would take effect in December and eligible subscribers would get paid the following month.

 

The SSO board also asked for a feasibility study on whether those who resigned from their jobs should still get the child support allowance for a further six months. Currently, their benefits are stopped as soon as they quit their jobs.

 

New rates for company workers’ monthly contributions to the Social Security Fund:

People earning less than Bt16,000 a month: Bt750

People earning between Bt16,000 and Bt16,999: Bt800

People earning between Bt17,000 and Bt19,999: Bt850

People earning at least Bt20,000: Bt1,000 

 

Increased SSO contributions mean increased benefits

• Compensation for illnesses that cause people to take more than 30 days of sick leave will be Bt10.000 a month for up to three months. 
• Compensation for child births will be hiked to Bt30,000 from the previous rate of Bt22,500.
• Compensation for disability to be paid on monthly basis until the end of life will be hiked to Bt10,000 a month from the previous rate of Bt7,500.
•  

Compensation for unemployment will be divided into two cases: 

A. In case of resigning from a job, a person is entitled to the Bt6,000 per month, compared to the previous Bt4,500, for three months.

B. In case of being fired from a job without fault, a person is entitled to Bt10,000 per month, compared to the previous Bt7,500, for six months.

• Compensation for death, besides funeral assistance worth Bt40,000, will be Bt10,000, up from Bt7,500. 
• Compensation for old age and a pension will be Bt4,000 per month, an increase from the previous Bt3,000, if the person has paid contributions for 180 months.
• If the person paid contributions for 420 months or 35 years, he or she will receive Bt10,000 per month.

 

Source: http://www.nationmultimedia.com/detail/national/30330047

 

-- © Copyright The Nation 2017-10-25

[zaphod reborn]

The increase is relatively small.  However, I think it would be better if the increased revenues went to funding higher pension benefits, as the disability and unemployment benefits are already too generous.  For example, you can claim unemployment following a voluntary resignation.