Rangsima Preechachard Social Security Office National Experience : the Development of Unemployment Insurance in Thailand Rangsima Preechachard Social Security Office

Social Security Act maternity and death) Sep., 1990 : Social Security Act was implemented Stage 1 March, 1991 - 4 types of benefits (sickness, invalidity, maternity and death) - enterprises with 20 or more workers Stage 2 Sep., 1993 - enterprises with 10 or more workers Stage 3 Sep., 1994 - introduced voluntary insurance service Stage 4 Dce., 1998 - implemented Old – Age pension insurance and child allowance schemes Stage 5 April, 2002 - extended enterprises with 1 or more workers Stage 6 Jan. 2004 - extended unemployment

Administration Organization Social Security Office (SSO) was established in September 1990 under the Ministry of Labour to manage Social Security Fund and workmen’s Compensation Fund Social Security Fund Workmen’s Compensation Fund

Social Security Fund To guarantee benefits for insured persons to relief difficulties in cases of non work-related sickness, invalidity, death, maternity , old age pension, child allowance, and unemployment.

Contribution Rates 1.5% 1.5% 1.5% 3% 3% 1% 0.5% 0.5% 0.25% Employers (Contributions are calculated from wage base 1,650-15,000 baht / month) Employers Employees Government Categories Sickness Maternity Invalidity Death Child Allowance Old Age Pension Unemployment 1.5% 1.5% 1.5% 3% 3% 1% 0.5% 0.5% 0.25%

Enterprises & Insured Person Insured Persons 9,675,824 under the UI scheme 8/2013

Ratio of benefit expenditure in 2012

Historical Background of UI in Thailand Unemployment benefit was considered during the economic crisis in 1997 The feasibility study of introducing an UI scheme was conducted by ILO in 1998. Sub-committee on the Preparation of UI during 2000-2003 Research / Survey / Seminar for reactions by employers and trade unions were conducted Royal decree for Unemployment was enacted in 2004

Principle of the Unemployment Insurance To assist the unemployed insured person to receive sufficient salary during unemployment The unemployed insured persons will receive cash benefit, health care benefit, employment services and skill development services to return to work as soon as possible

Qualification Conditions 7/5/2018 6 months contribution within 15 months before unemployment Register with DE as unemployed within 30 days after being unemployment Termination of employment must not be as a result of a job violation, a planned or pre-meditated criminal act against the employer, a serious act against the law which results in serious damage to the employer’ s business or to imprisonment.

Duration and Benefit Rate 7/5/2018 Laid off - 50% of wages up to 180 days within 1 year Voluntarily resign - 30% of wages up to 90 days within ** waiting period of 7 days on each claim**

Continue Benefits report their status ready and willing to work 7/5/2018 report their status ready and willing to work participate in training course

Stop Benefits return to work and become the insured 7/5/2018 return to work and become the insured persons according to article 33 or gov. employee refuse job or refuse job training without suitable reason do not report themselves at the Dep. of Employment without suitable reason

Expenditure of Unemployment 7/5/2018 UI 2011 2012 case amount laid off 24,036 1,103.00 17,937 1,541.13 resign 69,029 2,299.29 63,873 2,314.01 completion of contract 5,077 97.70 6,253 99.06 Total 98,142 3,499.99 88,063 3,954.21 In million baht

Collaboration of Organizations for Unemployment Benefit Social Security Office Department of Employment Department of Skill Development Department of Labour Protection and Welfare

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