Contributory Social Protection Scheme

Contributory Social Protection Schemes

These schemes cover government employees, state enterprise employees, private sector employees in the non agricultural sector, and private school teachers.

These schemes are

1. Workmen's Compensation Fund (WCF)
2. Social Security Fund (SSF)
3. Provident Funds
4. Government Pension Fund (GPF)
5. Private-School Teacher's Welfare Fund (PSTWF)

 

Workmen's Compensation Fund (WCF)

WCF is administered by Social Security Office (SSO) and financed only by employer’s contributions and interest accrued from the fund’s investment. It provides benefits to insured persons who are injured or sick from work-related. The benefits include sickness, disabilities, death, and survivor’s benefits.

Social Security Fund (SSF)

SSF is administered by Social Security Office (SSO) and financed by employee, employer, and government contribution. It provides benefits to persons employed in non-agricultural enterprises, the unemployed, the self-employed and other excluded people. The benefits include sickness, maternity, invalidity, death and unemployment, old-age benefit, and child allowance.

Provident Funds

Security and Exchange Commission (SEC) is responsible for monitoring and registering the funds. On retirement, employee receives a lump sum composed of his/her contribution, the employer’s contribution and the investment income. Employees of government organisation, state enterprises, private companies, and family members are entitled to the fund (voluntary basis). Employees and employers contribute to the fund every month, and employers have to contribute at least an equal amount to employee’s contribution (this made employers reluctant to raise employee’s contribution to the fund). Members of a provident fund are eligible for personal income tax deduction.

Government Pension Fund (GPF)

GPF acts like the provident fund, but the membership is limited to government officials. Members can contribute up to 12 per cent of salary, and the government continue to contribute at the same rate. Government officials eligible for GPF are civil servants, court officials, civil servants working in public universities, public prosecutors, teachers in state schools, parliamentary officials, police officials, military officials, officials of the Office of the Administrative Court, officials of the Office of the National Counter-Corruption Commission, and officials of the Office of the Auditor-General of Thailand.

Private-School Teacher's Welfare Fund (PSTWF)

PSTWF is run by a board of directors chaired by the Permanent Secretary of the Ministry of Education. It provide a provident fund, saving, financial assistance and welfare benefits to a private school’s director, teachers, and eligible staff. Contributions are from private schools’ directors, teachers and staff, private schools, Ministry of Education, donations, interest income and other income. Contribution rate is determined by the board and cannot exceed 3 per cent of salary. Private school contributes equal amount to each member’s contribution, and MoE contributes twice as much. Members are eligible for personal income tax deductible. Fund’s assets invested in a conservative way. As a result, it is not as prosperous as it should be. Plus, the government usually pay less than it should have (less than 6 per cent). No improvement expected.