Social Security reduces contribution rates for 3 more months
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BANGKOK (NNT) - The Cabinet has approved an extension of the reduced Social Security contribution rates for both employers and workers for another three months, from September to November, to help businesses and the workforce affected by the COVID-19 pandemic.
The Cabinet, in its weekly meeting yesterday approved the proposed extension of the reduced Social Security contribution rates collected from employers and employees, effectively extending the reduced rates now in effect for another three months.
The Social Security Office is currently collecting contributions at half the usual rate, in order to help businesses and employees affected by the COVID-19 pandemic.
Full-time employers, according to Article 33 of the Social Security scheme, currently need to contribute 2.5% of each of their employee’s wages, down from the usual 5% rate. Full-time employees also need to contribute 2.5% of their wage to Social Security, which is half the usual 5% rate. This amount is usually deducted from their payroll each month.
Self-contributing workers according to Article 39 of the Social Security scheme currently need to make a 235 baht monthly contribution, reduced from the full 432 baht.
The reduced contribution rates will continue to apply until the November payroll. The Social Security Office (SSO) expects the extra three months of reduced rates will lead to a drop in total contributions to 10.72 billion baht from the workforce, and to 9.63 billion baht from businesses.
Despite the reduction in funds the SSO will receive, the aid scheme is expected to help improve the livelihood of each worker during the time of the pandemic, meaning they will have 945-1,575 baht extra each month, while at the same time helping businesses improve their liquidity.
The Cabinet has also approved an increase in the country’s debt-to-GDP ceiling from 60% to 70% in order to give the government more headroom should it need to take out more loans. Government officials say the government remains in a good position to pay back the loans it has already taken, adding that changes to the debt ceiling must be reviewed at least every three years, according to the country’s state fiscal discipline law.
Information and Source
Reporter : Tanakorn Sangiam
Rewriter : Tarin Angskul
National News Bureau : http://thainews.prd.go.th
