The cabinet will be asked to approve a cut in the monthly contribution rate for employers and workers insured under Section 33 of the Social Security Act to help those affected by the economic slowdown.
Labour Minister Phiphat Ratchakitprakarn said the ministry would propose the reduced contribution rate for businesses and employees for approval at Tuesday's weekly cabinet meeting.
Under a draft regulation, monthly contributions to the Social Security Fund (SSF) will be reduced from 5% to 2.5% for three months initially, he said, adding the government contribution remains unchanged at 2.75%
He said the proposed cut is part of relief measures for businesses and employees to ease the impact of the stagnant economy, which has forced many to shut down factories or lay off workers.
The amount of payees' monthly contributions to the SSF depends on income, which is capped at 15,000 baht.
Those with a monthly salary of 15,000 baht will see their contribution reduced from 750 baht to 450 baht. It is unclear how the change will affect SSF revenue in the short term.
A source said the Labour Ministry's proposal follows Prime Minister Srettha Thavisin's instruction to Pichai Chunhavajira, who heads both the labour and finance ministries, to consider measures to alleviate the hardship caused by the slowdown.
In early June, the Federation of Thai Industries (FTI) said factory shutdowns were expected to gradually increase.
Some 1,600 to 1,700 factories had closed since earlier this year because of merger plans or rising operating costs.
The FTI said layoffs and factory shutdowns were options for them to improve or keep their businesses alive.