Jobless benefit lifts social security cost

PHUKET TOWN: Compulsory salary deductions for social security insurance will increase from 4% to 5% from January 1 for workers and for employers. Yaowalak Yangyuen, Chief of Phuket Social Security Office, said, “The Cabinet has approved the increase because we have added unemployment benefits to social security.” Thus, if an employee earns 10,000 baht a month, he or she will pay 500 baht for social insurance from January 1 – and that contribution is matched by the employer. However, no payment will exceed 750 baht a month. K. Yaowalak explained that employees will probably barely notice the increase. The average salary of a Thai worker is 6,260 baht a month. At an extra 1%, the cost to an average employee will rise by 62.50 baht a month. The new unemployment benefits cover both sackings, layoffs and resignations. “If workers are let go without having committed a breach of conduct, they will get 50% of their salary for 180 days,” K. Yaowalak said. “If they resign without a breach of conduct, they will be entitled to 30% of their salary for 90 days. “We will also help to place the unemployed in new jobs as soon as possible.” To be eligible for unemployment benefits, a worker must have been in the job for at least six months. Employers who do not contribute to the scheme are liable to have assets seized and auctioned off.

Phuket News
Click to comment

Leave a Reply

Legacy Phuket Gazette

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Related Articles

Leave a Reply