One of MSNA’s payroll service clients has asked us a question regarding Social Security
Fund and provident fund.
My salary gets deducted for Provident Fund and Social Security. Could you please
clarify the difference between Social Security and Provident Fund in Thailand?
Are we required to pay for both funds?
Under the Social Security Act as imposed by the Thai labour law, it is compulsory to pay for the social security. The employees have to contribute 5% of their salary, but not exceeding Baht 750 per person into the social security fund (The employers are required to withhold the social security contributions from each employee’s monthly salary). The
employer must also contribute the same amount and submit the total amount to
the Social Security Office within 29th day of the following month.
As for provident fund, the Thai labour law does not make it compulsory. It always
depends on each employer’s policy. In your case, your company has the policy of
having the employees pay 5% from their salary into the fund and the company
Read more on Thailand provident fund here.