Social security contributions to be cut

"For employers and employees, the rate will come down from 5 per cent to 3.5 per cent of their salary," Pan Wannapinij, secretarygeneral of the Social Security Office (SSO), said yesterday.

This measure is expected to take effect early next year.

The government's share would also drop from 2.75 per cent to 2.25 per cent.

The employee's contribution rate to the Social Security Fund (SSF) applies to the first Bt15,000 in monthly salary, which means employees earning up to Bt100,000 will have the same amount withheld as those earning Bt15,000.

If the lower rate lasts one year, those earning Bt15,000 a month will pay just Bt6,300 in total instead of Bt9,000.

"Through the reduction in SSF contributions, employers will retain some Bt11.6 billion while employees will keep Bt11.6 billion," he said.

The government's savings would amount to Bt3.8 billion.

"We hope this measure will reduce layoffs. Some 60,000 employees should be able to keep their jobs because of this measure," Pan said.

Earlier this week, the Federation of Thai Industries warned that the global recession could force one million industrial workers out of their jobs.

Labour Ministry permanent secretary Somchai Chumrat said his ministry had a committee monitoring any movement "roundtheclock".

If workers were made redundant, the ministry would ensure that they were protected under labour laws.

Between January 1 to October 22, 14,059 people had been laid off, mostly in the furniture and jewellery sectors.