Cabinet approves cuts to Social Security contributions from people covered by Section 40

BANGKOK (NNT) - A meeting of cabinet ministers today (June 15) approved a proposal to reduce contributions from people who are insured under Section 40 of the Social Security Act for six months, to mitigate the impact of the COVID-19 situation.

Government Spokesman, Anucha Burapachaisri, said today that the cabinet meeting approved in principle a draft decree to reset contributions to the Social Security Fund due to the COVID-19 pandemic. According to the proposal, contributions by insured persons covered by Section 40 are reduced to 60 percent of their original contribution for six months. The cabinet approved a draft ministerial regulation specifying the government’s contribution to the fund. The decision is aimed at easing the plight of the insured and improving people’s purchasing power, to mitigate the impact of COVID-19 on the economy.

Concerning monthly contributions to the Social Security Fund, the first option is to contribute 42 baht per month, from the previous 70 baht per month. The second option is to contribute 60 baht per month, from the previous 100 baht per month. The third option is to contribute 180 baht per month, from the previous 300 baht per month.

The government’s contribution to the Social Security Fund is to be paid at the rate specified by the ministerial regulation, but the amount must be less than half of the contributions received from the insured. The first option is to contribute 21 baht per month, from the previous 30 baht per month. The second option is to contribute 30 baht per month, from the previous 50 baht per month. The third option is to contribute 90 baht per month, from the previous 150 baht per month.