SOCIAL SECURITY
SSO board approves cut in contributions
- Published: 29/04/2009 at 12:00 AM
- Newspaper section: News
The Social Security Office board has voted to cut companies' and workers' contributions for six months against opposition from labour representatives.
The temporary reduction in social security contributions from 5% to 3% will take effect on July 1 if the cabinet approves the proposal.
The five board members representing employers and the SSO secretary-general voted for the reduction while the five representing workers rejected the idea.
The board manages the Social Security Fund .
Employees now contribute 5% of their salary, up to a maximum salary base of 15,000 baht a month, to the SSF. The employer matches the employee's contribution.
If the employee's salary exceeds 15,000 baht, the contributions by both the employee and employer are capped at 750 baht a month each.
Permanent secretary for labour and the board chairman, Somchai Chumrat, said the board felt cutting the monthly contribution would help employers and employees weather the global economic crisis. The reduced contributions will deprive the SSF of about 15 billion baht.
The board decision needs the endorsement of Labour Minister Paitoon Kaewthong and the cabinet before it takes effect.
One board member said the five workers' representatives opposed the move because of the effects it would have on the stability of the fund in the future.
"Most workers' representatives on the board disagree with the cut as it will affect workers' security," a workers' representative said.
"The board's decision failed to take into account the security of the fund."
Lae Dilokwithayarat, a labour expert and economist at Chulalongkorn University, supported the workers' position.
Mr Lae said the temporary reduction in contributions ran counter to the principles of social security and would affect the viability of the Social Security Fund, which was the workers' last security guarantee.
He said the board's decision was unfair to workers as those who voted in favour of the cut were mostly employer and state representatives.
About the author
- Writer: PENCHAN CHAROENSUTHIPAN
