Social insurance programmes Social protection: Programmes and investment
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• government officials and regular employees of various government levels;
• employees of foreign governments or international organizations;
• employees of a company located in Thailand but whose headquarters are abroad;
• teachers or headmasters of private schools;
• students, student nurses, undergraduates, and medical interns who are employees of
schools, universities or hospitals. The SSF provides the following benefits:
• Sickness benefit. Inpatient and outpatient benefits, sickness compensation equivalent
to 50 per cent of the monthly wage, reimbursement for dental care twice a year and prostheses.
• Maternity benefit. In-kind and cash benefits. The maternity benefit is a lump-sum
payment of 12,000 baht per delivery up to two deliveries. Cash benefits are in the form of 50 per cent compensation based on the average salary of the last three months
up to 90 days.
• Invalidity benefit. Lifetime invalidity compensation of 50 per cent of the average
wage, lifetime medical reimbursement up to 2,000 baht per month, reimbursement for prostheses, funeral grant and, in the event of death, compensation to relatives ranging
from 1.5 to 5 times the average wage of the beneficiary, depending on the number of contributing months.
• Death and survivors benefit. Compensation for funeral expenses, compensation for
relatives in the event of death, under the same conditions as indicated under the previous point.
• Child allowance. A monthly grant of 350 baht per child for up to 2 children.
• Old-age benefit. A pension equal to 20 per cent of the last 60-month average wage,
plus various compensatory and lump-sum amounts payable to secondary beneficiaries if the primary beneficiary dies within 60 months of retirement or has contributed for
less than 6 months.
• Unemployment benefit. A subsidy of 50 per cent of the highest three-month average
wage for a maximum 180 days in case of involuntary unemployment and 30 per cent and 90 days in case of voluntary unemployment.
The SSF is financed by a tripartite mechanism under which the employee, the employer and the Government contribute to the scheme. Contributory rates vary according to the
benefit concerned, as shown in table 17. All in all, the SSF covers 8.8 million workers and 400,000 self-employed persons, i.e. 26 per cent of the total labour force.
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Table 17. Thailand: Contributory rates under the Social Security Fund as a percentage of insurable
earnings
Contributory rate Sickness, maternity, invalidity
and death benefits Child allowance and
old-age benefits Unemployment
insurance Total
Government 1.5
1 0.25
2.75 Employer
1.5 3
0.5 5.00
Employee 1.5
3 0.5
5.00
Source: Social Security Office of Thailand, 2010.
Workmen’s Compensation Fund WCF The WCF is designed to cover the negative consequences of work-related injuries,
diseases, disabilities and death. The Fund is financed exclusively by the employers, who contribute a percentage that ranges from 0.2 per cent to 1 per cent of the workers insurable
earnings, depending on the level of risk in the industry. It provides the following benefits:
• Sickness benefits in the form of cash compensation 60 per cent of the monthly wage
within an upper and lower limit of 2,000 and 9,000 baht and medical services. •
Disability benefits that comprise a cash compensation of 60 per cent of the monthly wage for up to 10 years for partial disability and 15 years for permanent disability,
plus surgical and rehabilitation expenses.
• Death and survivors’ benefit equal to 100 times the highest minimum daily wage to
cover funeral expenses and compensation of 60 per cent of the monthly wage for eight years, up to a maximum of 9,000 baht per month.
In 2008 about 8 million workers in Thailand were affiliated to the WCF, from approximately half a million in 1991. The average number of workers receiving a benefit
or compensation was 200,000 between 2000 and 2007. The Fund covered 22.6 per cent of the labour force.
Government Pension Fund GPF The GPF was launched in 1987 under the Government Pension Fund Act B.E. 2539 to
insure its members upon retirement and to encourage them to save and to improve their living conditions. The GPF, which is the only programme of its kind in Thailand, was
originally voluntary, but in 1996 it became compulsory for all government staff. Since 2008 the contributory rate has been up to 12 per cent of the employees salary plus 3 per
cent from the Government. In 2008 the GPF had 1,168,085 members, which corresponds to 3.2 per cent of the labour force and 96 per cent of Government staff.
Provident funds Provident funds are voluntary contribution schemes where the pay-out takes the form of a
lump sum constituted from the employers contributions, the employees contributions and investment dividends that the employee receives upon retirement or when his or her
employment terminates. The employee contributes between 2 and 15 per cent of the salary which the employer must match. By 2009 there were a total of 503 provident funds which
were worth 66.9 million baht and involved 9,370 employers and 2 million employees 5.3 per cent of the 2009 labour force. After almost doubling between 2005 and 2008, revenue
from total contributions fell by 27.2 per cent.
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Private- School Teachers’ Welfare Fund PSTWF
This fund was established in 1975 as a welfare measure for teachers in the private sector who were generally less well paid and had worse conditions of service than their
counterparts in the public school system. Teachers contribute a maximum of 3 per cent of their salary and employers must contribute the same. The Government doubles the
contribution of the teacher. Beneficiaries of the PSTWF are entitled to free health care, child allowances, the payment of school fees, invalidity and death benefits and old-age
benefits.
Under the new Private School Act, PSTWF members can also borrow money from the Fund. The Fund had 150,000 members in 2006.