Kriengsak ChareonwongsakThis fund covers workplaces

This fund covers workplaces, which have between one and nine employees, or 68.9% of the total number of workplaces in the country. The three biggest sectors are retailers and wholesalers, restaurants, and hotels, which account for 33.3% of the country’s total workplaces; followed by the manufacturing sector, at 17.0%, and finally public, social and individual services, with 11.1% of the country’s total workplaces.

Almost 10.9% of the total number of employees at workplaces throughout the country will get higher social security benefits.

The fund will affect many groups of people in different ways:
Firstly, effect on employers or owners of workplaces. In the short term, the operational costs of Small to Medium Size Enterprises (SMEs) will increase as employers have to pay a contribution of at least 3.2% of the employee’s wage, but not more than 4%, depending on the risks at the workplace. A higher number of workplaces will now be involved in contributions, from 108,745 to 1,239,000,
Examples of workplaces that have the highest risks are mining, bomb production, fireworks, and construction. On the other hand, those businesses with the lowest risk burden are medical professionals, finance, and banking.

Social security for small businesses - losses and gains

Professor Dr Kriengsak Chareonwongsak
Executive Director, Institute of Future Studies for Development (IFD)
kriengsak@kriengsak.com, http://www.ifd.or.th