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in-focus

New Compensation Act promulgated, increases disability payouts


Starting from early next year, the new Compensation Act will take effect, with the aim of benefiting both employees and employers.

For example, employees’ compensation rates will go up from 60 to 70 per cent of their current salary. If they become disabled because of their jobs, they would be compensated at an amount equivalent to at least 70 per cent of their monthly salary multiplied by at least 15 years.
The current law allowed the compensation rate to be multiplied by up to 15 years only in the event of disability. 
In events of deaths, the new law promises a compensation rate multiplied by 10 years – up from eight years. 
If employees are unable to come to work, they would also get compensated from the first day of their absence – not after three days of absence as is the case currently. 
Moreover, the new law will extend coverage to the local staff of embassies and international organisations. 
Social Security Office’s acting secretary-general Ananchai Uthaipattanachep said on Thursday that the new Compensation Act was promulgated in the Royal Gazette on October 11. 
“It will become effective 60 days later,” he explained.
According to him, employers will also benefit from the law. Under the old law, employers had to submit an amount equivalent to 3 per cent of employees’ salaries to the Compensation Fund. 
“But with the new law, employers’ contributions are equivalent to 2 per cent of their employees’ salaries only,” Ananchai explained.

Published : October 28, 2018

By : The Nation