New Social Security Tax

[missellie11]

Hi, I work at a small "International" school and there is constant headache about how much I receive for my paycheck. There are several farang teachers at my school and even though we all have the same pay rate, every month the amount of taxes taken out is different from each other as well as the amount taken out the previous month.

Recently we have a new 750 tax taken from our paycheck for "social security" which apparently means health insurance in Thailand (in America, it is your retirement fund). In our contract, insurance was free and provided. Now we have to pay for it because it is required by the government.

Do any other teachers at other schools in Thailand have this new deduction from their paycheck. I even told my boss I don't want insurnce since healthcare is so cheap here and I rarely go to the doctor. He said no, I have no choice. I have almost 5,000 baht A MONTH taken out of my paycheck now and that seems really high. I am just wondering what other teachers are paying in taxes. My salary should be 50,000 a month. Any other perspectives are appreciated!

[aidenai]

There are several farang teachers at my school and even though we all have the same pay rate, every month the amount of taxes taken out is different from each other

Depending on the personal circumstances, the amount of tax can be different.

http://www.rd.go.th/...ish/6045.0.html

Do any other teachers at other schools in Thailand have this new deduction from their paycheck. I even told my boss I don't want insurnce since healthcare is so cheap here and I rarely go to the doctor. He said no, I have no choice.

It's law.

http://www.sso.go.th.../eng/index.html

[skybluestu]

I get my full salary paid into my account each month then do my tax return myself in Feb/March.

[sirchai]

I even told my boss I don't want insurnce since healthcare is so cheap here and I rarely go to the doctor. He said no, I have no choice.

The 750 baht isn't really much for your social security. It's not just an accident insurance. In case of an accident, or any other medical expenses all will be paid by them. You've got the right to receive money for kids/monthly.

You can get reimbursed 500 baht twice a year for dentist's bills.Others might know more about it.

When you've have paid in for at least one year they'd have to pay you a monthly amount of money when you're losing your job.

Thai teachers can put their foreign husbands on the same social security card, seems it doesn't work the way around.

Paying into this social security would also mean that you'll be able to take the money out one day.

The school's paying the same amount monthly. It's a law, not a rip off.

Don't you pay much more in your origin country, just having an insurance?

Guess 10 percent of your salary for tax and insurance isn't really much........... .

Edited July 11, 2012 by sirchai

[culicine]

It's a little unusual for an International school to be making this deduction - For government schools yes, but I wasn't aware it applied to private schools. I've never seen this deduction on my payslip for 10 years at my current private school.

[naboo]

As above, I've had this deducted at a government school, but not at a private school.

[missellie11]

That is the most common thing I have heard. I feel like so much of my paycheck is being taken away!

Aidenai - Most of us are single with no dependents working here with the same salary. What other factors can change the amount of tax we pay?

Also, sirchai. I was in a low income in my home country so I did not pay that much in taxes and did not have insurance. I always pay my own medical bills. I am not planning on living in Thailand for the rest of my life, nor am I married to a Thai person, so all these "benefits" don't really help me at all. Especially since I don't speak Thai fluently, I am sure it will be almost impossible to apply for these things. In a perfect world, I suppose, maybe.

Thanks for the info everyone, really helpful.

It's a little unusual for an International school to be making this deduction - For government schools yes, but I wasn't aware it applied to private schools. I've never seen this deduction on my payslip for 10 years at my current private school.

[aidenai]

It's a little unusual for an International school to be making this deduction - For government schools yes, but I wasn't aware it applied to private schools. I've never seen this deduction on my payslip for 10 years at my current private school.

As above, I've had this deducted at a government school, but not at a private school.

Apologise, gentlemen.

The SSO rules don't apply to private schools.

Edited July 12, 2012 by aidenai

[missellie11]

"The SSO rules don't apply to private schools."

Then why am I paying it!? Do you have this information on file so I can read it.

It is quite a bit of money each month and I feel like my boss is stealing it wrongly from me. Could it have to do with if the school is registered as a business or education institute. My crappy school is run like a business and I think might be registered as one. But I still have a teacher visa. Ugh, so many rules, so confusing!

[aidenai]

Then why am I paying it!?

Sorry. I'm not your employer.

Do you have this information on file so I can read it.

Private School Act BE 2550 (AD 2007), Part 6, Section 86.

[culicine]

I think for private schools, they are supposed to set up a provident fund - teachers and the school pays into it - in lieu of social security payments. This has however never been offered to the foreign teachers at my school - too costly for them I suppose.

For SSO, I think you need to pay in for a minimum for 15 years to qualify for a pension, but I'll stand corrected on that if I;m wrong. That indicated you are unlikely to see that money again. For the OP, I'd contact the SSO office about that. Not sure if anyone speaks good enough english there though!

[sirchai]

I think for private schools, they are supposed to set up a provident fund - teachers and the school pays into it - in lieu of social security payments. This has however never been offered to the foreign teachers at my school - too costly for them I suppose.

For SSO, I think you need to pay in for a minimum for 15 years to qualify for a pension, but I'll stand corrected on that if I;m wrong. That indicated you are unlikely to see that money again. For the OP, I'd contact the SSO office about that. Not sure if anyone speaks good enough english there though!

For SSO, I think you need to pay in for a minimum for 15 years to qualify for a pension, but I'll stand corrected on that if I;m wrong.

My son's thinking that the earth is flat. What should I tell him?

Should your international school calls itself the opposite of NO, please page me.

How many people in your origin country speak Thai, or any other second language?

Sent by Chinese tablet Core Single 0000000

Edited July 13, 2012 by sirchai

[falang07]

10% tax including health and social security insurance? That is a bloody tax haven, everyone in Europe would take it, trust me!

[luciferbkk]

I was asked if I wanted to pay into SSO at a government university in Bangkok and I took the option not to pay. The Demonstration School at this university deducted income tax at random. For some months nothing, some months 10 percent, other months 3 percent. At the end of the tax year I had to pay 15,000 Baht income tax because my school didn't pay enough. It happened to other teachers as well.

At my current government school I don't pay for social security or tax but file a tax return in March every year.

As a rule of thumb, you can earn about 240,000 THB tax-free and for the amount over this sum you pay about 10% income tax. If you make 600,000 a year that would make just about 36,000 THB income tax. 3000 per month + 750 SS is what you should pay. If the school deducts more, you should file a tax return in March next year and you'll get the money back. Hope that helps.

Edited July 15, 2012 by luciferbkk

[missellie11]

Thanks for all the information everybody! Very good to get perspectives from others. We are all very annoyed that almost 5000 baht a month is missing from our paycheck in the guise of taxes and now SS. Gotta love working in Thailand!

Thanks!

[LazySlipper]

I have Thai social security and am very happy to have it. The maximum that a person pays for it monthly is 750bht and that is quite cheap seeing that it covers the cost of most prescription medication and surgery.

[KhaoNiaw]

For SSO, I think you need to pay in for a minimum for 15 years to qualify for a pension, but I'll stand corrected on that if I;m wrong. That indicated you are unlikely to see that money again. For the OP, I'd contact the SSO office about that. Not sure if anyone speaks good enough english there though!

I think if you've only paid a few years, you can get it back in a lump sum. I think a couple of people have reported on this forum in the past that they were successfully able to get the money back when they were leaving Thailand.

[TerryLH]

Unless there have been recent changes to Social Security, teachers at private schools, as Aidenai has pointed out, are not in the system. That change happened a number of years ago.

If you work at a private school, and pay into Social Security, you might want to find out where that money is going. After 3 months of payments you should get a SS card and be told what hospital has been assigned for you to use.

"Thai teachers can put their foreign husbands on the same social security card, seems it doesn't work the way around."

You mixed your facts up. Spouses can't be added to anyones Social Security. Government teachers under the Civil Service Health system can add their spouses. Also children and parents.

Once you've been in the SS system for 12 months, you can continue in it if you become ineligible through work.

You'd have to sign up to pay on your own. The monthly cost is 432 Baht for this. I don't think it includes payments for retirement or workers comp, but does provide you with decent health coverage. You have 6 months to apply after stopping paying through employment.

[Arkady]

As above, I've had this deducted at a government school, but not at a private school.

Section 4.4 of the Social Security Act excludes teachers and headmasters of private schools that are registered according to the law on private schools. Some private schools may not be exempt, if they are not registered according to the law on private schools. Not sure of the thinking behind this exemption but the original law only applied to businesses employing 50 plus employees. Perhaps it was to avoid putting too much burden on small schools. Who knows? It makes little sense today, now that all other employees are covered either by the Social Security Fund or the Civil Service Fund.

Edited April 28, 2013 by Arkady

[mike123ca]

I would first try to find out if your are registered social security. You and the school should both be paying 750 baht each. If I recall it can be used to used as a tax deduction. Then you should to identify your other deductions. Review your contract regarding compensation. Does your contract allow for this amount to be deducted, maybe the Thai labour board can provide some information and assistance regarding the deductions being made at source.

[Stradavarius37]

To the OP - you have to pay 5,000 a month in taxes-----THE HORROR!!!! Everyone pays taxes, its a life certainty - apparently you didn't get the memo.

[otherstuff1957]

I pay about 5K a month in taxes. A the end of every year I get a Por Ngor Dor 91 form พงด 91(sp?) which will show my income & taxes paid. I then file a tax return and get some money back - about 8 or 9K for the past two years, but only 3.5K this year.

My wife usually takes care of this for me, but the process is relatively painless & I think it can be done online (if you read Thai).

So, If you are earning 50 - 60K, a deduction of 5K would be about right. If you are earning more, you might get a tax bill at the end of the year! If you are earning less, you should get a nice tax refund next year.

[DaBloodyMess]

To the OP - you have to pay 5,000 a month in taxes-----THE HORROR!!!! Everyone pays taxes, its a life certainty - apparently you didn't get the memo.

There is nothing wrong with her asking the question.... my situation isnt wildly different and I sure dont pay 5k in tax every month. You are acting as if there is no possibility that her school has made a mistake with the tax deducations.

Yes everyone is taxed, but no one wants to pay more than they have to... unless of course you would like to pay more than your share to prove your point?

Edited April 29, 2013 by DaBloodyMess

[culicine]

I pay about 5K a month in taxes. A the end of every year I get a Por Ngor Dor 91 form พงด 91(sp?) which will show my income & taxes paid. I then file a tax return and get some money back - about 8 or 9K for the past two years, but only 3.5K this year.

My wife usually takes care of this for me, but the process is relatively painless & I think it can be done online (if you read Thai).

So, If you are earning 50 - 60K, a deduction of 5K would be about right. If you are earning more, you might get a tax bill at the end of the year! If you are earning less, you should get a nice tax refund next year.

The amount of tax about correct. I pay about 60K in tax a year and manage to get back about 16K after I make deductions. Anyway, the online method is much faster in terms of getting your refund. I normally do it online but there was a problem this year with my tax number and had to do it at the office. My wife did hers online and got her refund already....weeks later I'm still waiting for mine!

[sunny and hot]

Try paying 50% in England!

[utalkin2me]

Try paying 50% in England!

Any country that asks me to work 6 months a year for myself, and the other 6 for them, is going to get a great big, fing middle finger jammed up their ass.

[culicine]

Try paying 50% in England!

Any country that asks me to work 6 months a year for myself, and the other 6 for them, is going to get a great big, fing middle finger jammed up their ass.

I'm happy to work in LoS. In Australia, foreign residents are taxed higher than locals - 33% on a salary up to 80K dollars. Mine works out to about 10%, then about 7% after some deductions.

[nellyp]

I have a few questions to ask about this. I have tried all the links I can find for info , but they all fail.

Am I to understand that if i pay for SSO through my school, they will have to pay something too? I don't think my school will be very happy. I want to take advantage of the social security, but is there a way to do it without making the school pay?

Also is it correct that I can add my wife and kids to my social security, and if so does it cost me more money?

One last thing...Is there a maximum monthly payment for me (plus the family if they are allowed to join me) to make?

[Eddy B]

I even told my boss I don't want insurnce since healthcare is so cheap here and I rarely go to the doctor. He said no, I have no choice.

The 750 baht isn't really much for your social security. It's not just an accident insurance. In case of an accident, or any other medical expenses all will be paid by them. You've got the right to receive money for kids/monthly.

You can get reimbursed 500 baht twice a year for dentist's bills.Others might know more about it.

When you've have paid in for at least one year they'd have to pay you a monthly amount of money when you're losing your job.

Thai teachers can put their foreign husbands on the same social security card, seems it doesn't work the way around.

Paying into this social security would also mean that you'll be able to take the money out one day.

The school's paying the same amount monthly. It's a law, not a rip off.

Don't you pay much more in your origin country, just having an insurance?

Guess 10 percent of your salary for tax and insurance isn't really much........... .

If your contract is not renewed and the payments for this scheme are not continued due to a lack of knowledge you will lose all rights to any return of the money that you have been forced to put into this. You have 30 days to report that you are out of work, but whats goods that as a farang? You will either need to find a new job quick or do a border run. I don't care if you disagree as I know this is the simple truth as I have been to the office in person and they told me this and I was with my Thai wife who can speak has worked outside of Thailand and speak English. It is a government con!

[GirlDrinkDrunk]

5000 baht monthly tax. id be happy with treble that, in fact i be happy with more than treble that.

I have found making less money an excellent way to pay less tax.