Calculating employee’s salary

[lkn]

Let’s say I have an employee with a base salary of 24,000 baht per month.

 

The employee worked 3 holidays, on which they are entitled to two times the regular pay.

 

Regular pay would be 800 baht per day (24,000 / 30) so 1,600 baht per holiday worked.

 

Furthermore, social security is 10% of the salary where employer pays half. So as the employer I should pay 5% of the total salary into the employee’s social security fund.

 

In this case, total salary (for this month) is 28,800 baht (24,000 + 3 × 1,600) and 5% of that is 1,440 baht.

 

Is the above a correct interpretation of Thai labour laws?

 

Furthermore, should I pay the employee 28,800 baht and then deposit 1,440 baht into their social security fund, or am I supposed to deduct 5% of the employee’s salary and deposit the full 10%?

 

So in the latter case, I would pay the employee 27,360 baht (28,800 - 1,440) and deposit 2,880 baht into their social security fund.

[cincytwboy]

1. Your calculation is correct.

2. No, the ceiling for social security is thb750. Your employee' salary exceeds THB 15,000. So forget about 5%. It's thb750.

3. You should deduct thb750 for him/her, then, pay thb1,500 to social security.

 

Have you filed social security before??? The above are basic, you should know it already.

 

[lkn]

1 hour ago, cincytwboy said:

Have you filed social security before??? The above are basic, you should know it already.

I have not filed before because technically I am not responsible for this, but the new person who is, has asked me to research it.

 

[maisodni]

You  - or the "new person who is" responsible may find this reference useful:  http://thaistartup.com/references/overview-company-financial-administration.php

 

Cheers!

M

[cyberfarang]

14 hours ago, lkn said:

I have not filed before because technically I am not responsible for this, but the new person who is, has asked me to research it.

 

Sorry, but have to ask this. Are you another Farlang starting a business and using a Thai to front it? Otherwise if this is a strictly owned Thai company they would not expect a foreigner to make these kinds of inquiries for them and if a legitimate foreign owed company, the person would be doing the asking himself.

[lkn]

1 hour ago, cyberfarang said:

Sorry, but have to ask this. Are you another Farlang starting a business and using a Thai to front it?

No

 

1 hour ago, cyberfarang said:

Otherwise if this is a strictly owned Thai company they would not expect a foreigner to make these kinds of inquiries for them and if a legitimate foreign owed company, the person would be doing the asking himself.

Yes, if everybody had clearly defined roles, all roles were assigned, and everybody were competent, there would be no need for me to help out. But this is rarely how it works in practice.

Edited June 5, 2017 by lkn

[JaseTheBass]

I pay O/T cash in hand. Makes life a lot eaier.

[cincytwboy]

1 hour ago, lkn said:

No

 

Yes, if everybody had clearly defined roles, all roles were assigned, and everybody were competent, there would be no need for me to help out. But this is rarely how it works in practice.

I feel you. It's difficult to find competent staffs in Thailand. Higher salary helps, but it does not warrant us a competent employee.

 

Sometime, when we provide current up-to date information and tell employee.s They would think we as foreigners know nothing, because we are not Thai....... I think this is cyberfarng referred to.

[dansbkk]

You should not be in business.

[cyberfarang]

10 hours ago, lkn said:

No

 

Yes, if everybody had clearly defined roles, all roles were assigned, and everybody were competent, there would be no need for me to help out. But this is rarely how it works in practice.

If you are thinking of starting some kind of business in Thailand and those who you intend to get involved with are not competent; then this is heading for disaster.

 

If they have approached you to try and seek advice, then this seems to be a non-starter and best to let them sort it out themselves and stay well out of it.

[NiwPix]

While most others are investigating your background etc instead of just helping out:
post #2 is spot on. All questions you had were answered and nothing else I can add to it.
Best of luck :)
P.s.: one thing I just thought of: make sure the employee is already registered as your employee at the social security department. If you have paid that employees ss fund in the past months, then you're all clear. If it is a new employee, you need to add them first.


Sent from my iPhone using Thaivisa Connect