Cabinet approves increase in Social Security Fund compensation for laid-off workers

Cabinet approves raising laid-off workers’ compensation from 50% to 60% of daily wages to provide better support during unemployment.

The Cabinet on Tuesday approved a draft directive from the Labour Ministry to increase compensation for laid-off workers under the Social Security Fund from 50% to 60% of their average daily wage, according to a government spokesperson.

Compensation Rate Raised to 60%

Deputy government spokesman Karom Polpornklang said the Cabinet approved the Labour Ministry’s proposal at the weekly Cabinet meeting. The new compensation rate will take effect once the directive is published in the Royal Gazette.

Applies to Social Security Fund Members Under Article 33

Currently, employees covered by Article 33 of the Social Security Act are entitled to receive unemployment compensation at 50% of their average daily pay for up to 180 days. The change will raise this rate to 60%, offering greater financial support during periods of unemployment.

Labour Ministry Cites Economic Pressures

The Labour Ministry proposed the increase, arguing that the existing 50% rate is insufficient to support laid-off workers amid ongoing economic difficulties. The proposal was reviewed and cleared by the Office of the Council of State.

Increase Allowed Under Financial Discipline Law

Karom noted that the increase is in accordance with Article 27 of the Financial Discipline Act B.E. 2561, which allows adjustments under certain conditions.

Cost Impact and Fund Sustainability

The increased compensation is expected to cost the Social Security Fund approximately 1.035 billion baht more per year. However, the Labour Ministry has assured that the fund remains financially sound, as the additional expense is still less than the total contributions received from employers and employees.

(2025/05/06-00:00)