Understanding Employer Tax Contributions in Thailand

Thailand's Social Security Office (SSO) administers a comprehensive social security program that provides essential benefits to legally employed individuals. Both employers and employees are required to participate in this system under Section 33 of the Social Security Act, with contributions shared among the government, employer, and employee.

Monthly contributions are calculated at 5% of an employee's salary, based on a wage base ranging from 1,650 THB to a maximum of 15,000 THB. The government contributes an additional 2.75%. Employers must remit these payments by the 15th of the following month, with late payments incurring a 2% monthly penalty on the outstanding amount.

Mandatory Employer Contributions Breakdown

Employers are responsible for the following contributions, totaling between 5.45% and 6.25% of employee wages:

Health, disability, maternity, and death benefits: 1.5%
Pension and child allowance: 3%
Unemployment insurance: 0.5%
Workmen's Compensation Fund (WCF): 0.2% - 1%
Employee Welfare Fund (EWF): 0.25%

Health Insurance Coverage

Employees enrolled for at least three months within 15 months prior to treatment are eligible for non-occupational illness benefits. Coverage includes free medical care at registered hospitals, with cash benefits at 50% of wages for up to 90 days per illness (maximum 180 days annually). Chronic conditions may receive benefits for up to 365 days.

Public hospitals provide unlimited treatment with reimbursement for actual costs (excluding accommodation and meals, capped at 700 THB daily). Private hospital coverage includes:

Outpatient care: Up to 1,000 THB
Inpatient care (non-ICU): Up to 2,000 THB daily for medical expenses
ICU treatment: Up to 4,500 THB daily
Major surgeries: 8,000 - 16,000 THB per procedure

Dental benefits cover extractions, fillings, and dentures with annual limits of 900 THB for basic care and up to 4,400 THB for full dentures.

Disability Insurance Provisions

For partial disability, employees receive 30% of daily wages for up to 180 months. Total disability entitles individuals to 50% of daily wages for life. Public hospitals offer free services, while private facilities reimburse up to 2,000 THB monthly for outpatient care and 4,000 THB for inpatient treatment.

Maternity Benefits

Female employees receive a 13,000 THB childbirth allowance and 90 days of paid leave at 50% of average wages (maximum two claims). Male employees with registered marriages or recognized partnerships receive a one-time 13,000 THB allowance.

Death Benefits

Survivors receive a 40,000 THB funeral grant plus compensation based on contribution history: 50% of four months' average salary for 36-120 months of contributions, or 50% of 12 months' salary for over 120 months.

Pension Eligibility and Calculation

Employees qualify for pensions at age 55 after 180 months of contributions. The base pension is 20% of the average salary from the last 60 months, increasing by 1.5% for each additional 12 months of contributions. If a pensioner dies within 60 months of receiving benefits, survivors receive 10 times the last monthly payment.

Unemployment Insurance

Benefits vary by termination type: 50% of wages for up to 180 days for employer-initiated separation, 30% for up to 90 days for voluntary resignation. Claims must be filed within 30 days of unemployment.

Employee Welfare Fund (EWF) Update

Launching October 1, 2025, the EWF requires contributions from employers and employees at 0.25% initially, rising to 0.5% after 2030. Businesses with 10+ employees must participate unless providing equivalent provident funds.

Employee Tax Responsibilities in Thailand

Employees contribute 5% of their salary to social security, covering:

Health, disability, maternity, and death benefits: 1.5%
Pension and child allowance: 3%
Unemployment insurance: 0.5%
EWF: 0.25% (from 2025)

Personal Income Tax Structure

Thailand residents (staying 180+ days annually) pay progressive income tax on worldwide income. Non-residents pay only on Thai-sourced income. 2024 rates are:

Annual Income (THB)	Tax Rate
0 - 150,000	0%
150,001 - 300,000	5%
300,001 - 500,000	10%
500,001 - 750,000	15%
750,001 - 1,000,000	20%
1,000,001 - 2,000,000	25%
2,000,001 - 5,000,000	30%
5,000,001+	35%

Navigating Thailand's tax and social security landscape requires expert guidance. SailGlobal offers specialized support to ensure compliance with local regulations while optimizing your workforce management strategy.

Thailand Employer and Employee Tax Guide 2024: Social Security Contributions