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Thailand: Provident fund contribution delay continues
The Finance Ministry has allowed employers and employees to extend halting or delaying provident fund contributions for another six months amid the recent Covid-19 outbreak in Thailand.
On April 29, 2020, former Finance Minister Uttama Savanayana announced the type of businesses, duration and conditions for employees or employers to halt or delay provident fund contributions in areas affected by an economic crisis or natural disaster.
The announcement stipulated employees or employers who have been affected by the outbreak can halt or delay their contribution to provident funds from April to December 2020.
As the measure ended on Dec 31, an extension to allow both employers and employees to temporarily halt or delay provident fund contributions was needed, with the new wave of infections continuing to affect business, said Kulaya Tantitemit, acting director-general of the Fiscal Policy Office.
The ministry’s new announcement was published in the Royal Gazette on Jan 8 and took effect on Jan 9. Employers and employees can begin halting or delaying their contributions to provident funds from January’s remittance period to the end of June.
The objective is to alleviate the financial burden for those affected by the outbreak. The membership duration and status of provident fund members remains intact, said Ms Kulaya.
Employees working in the formal sector maintain their membership in their respective provident funds and must return to making contributions once the pandemic subsides to save money for retirement, she said.
Under the provident fund law enforced in 2018, employers and employees are each required to contribute 3% of the employee’s salary for the first three years to the fund, before increasing to 5% during years four to six, 7% between years seven to nine, and 10% from the 10th year onwards, with a cap of 60,000 baht per month. The law requires companies with 100 employees or more to match employees’ contributions to the fund within the first four years of its enforcement.
Source: https://www.bangkokpost.com/business/2049411/provident-fund-contribution-delay-continues