Thailand

Benefit Provider

State & Compulsory Benefits

Retirement benefits are provided through the Social Security Fund, administered by the Social Security Office.

The government had agreed to establish a supplementary second pillar defined contribution (DC) National Provident Fund under the draft National Pension Fund Bill, however progress on implementation remains slow; at the date of this report the implementation was expected to take effect in the next few years, with the following features of the National Provident Fund suggested ...

Typical Employer Practice

Many multinational employers provide supplementary retirement benefits (prevalence is not common among local employers or small to medium sized multinational employers); benefits are provided through registered provident funds.

Provident funds may be established for the exclusive use of a single employer (typically large employers) or, more often, on a pooled basis as multi-employer funds.

The report contains more information on retirement benefits including Benefit Provider; Type of Plan; Eligibility; Retirement Age; Pensionable Salary; Vesting and more

Benefit provider

State & Compulsory Benefits

Termination indemnities (known locally as severance pay) are provided by employers.

Where an employer with at least 10 employees has not established a registered provident fund (see Retirement section for detail), termination indemnities are provided through the Employee Welfare Fund; contributions to the Employee Welfare Fund are required as follows:

• employer - up to 5% of the employee's salary for each employee
• employee - up to 5% of the employee's salary.

The Employee Welfare Fund is administered by the Department of Labour Protection and Welfare.

Typical Employer Practice

Employers would not typically provide supplementary termination indemnities.

More information on Eligibility; When Benefit is Paid; Benefit details and the associated Taxation applicable to termination indemnities is available in the report