Thai Social Security and why you should have it

Working abroad is not a constant barrage of fun times. As a matter of fact, it can be a hotbed for cross-cultural misunderstanding. Additionally, it can bring quirky challenges that you have to get used to. But the bigger problem comes when something unexpected happen, like getting sick for instance.

It is true that getting sick in a foreign country is not easy, and medical cost if you’re hospitalized could be high. Of course, the main reason for ballooning medical expenses is the higher cost of new medical technologies and drugs.

But what happens when the sick OFW who failed to secure OWWA membership dies in Thailand? The repatriation of the deceased OFW can be really stressful for both friends and relatives who don’t have extra money to spare.

Can foreigners in Thailand avail Social Security and Welfare?

Thailand has a social security system locally called “Prakan Sangkom” which is funded by workers contributions as well as additional contributions from the employer. Prakan Sangkom’s purpose is to ensure that proper social security assistance is provided to its members during the occurrence of sickness, maternity, invalidity, old age and unemployment, death, the provision of medical care and the provision of child allowance. It is obtainable not only for locals but for foreigners as well.

To register, the employer will compete the paperwork first and will provide the employee with a form. This should be presented along with passport, work permit, and any other documents that are requested.

The employer needs to send these to the social security office. When registration is completed the worker will receive a social security card 5 days after registration and this card remains the same no matter how many jobs the person has. There is also a medical card which is sent out after 3 months contributions have been made so that the holder can receive free medical treatment at the registered hospital indicated in the medical card.

Members pay THB 1,500. Half of it which is THB 750 is deducted from the employee’s salary every month. The employers pay the additional THB 750.

What are the insurance coverage/benefits?

You can claim social security fund benefits if you experience any of the following:

Sickness

Qualifying Conditions	Medical Care	Cash Benefit
3 months contribution within last 15 months	Free of charge at registered hospital (includes prescribed medicines)	50% of wages 90 days each time max. 180 days/year max. 365 days for chronic cases

The insured receives medical treatment without having to pay costs when treated in hospitals in which one can use one’s social security card or in a network to which the original hospital belongs in addition to cases of sick leave when medical treatment is ordered by a participating physician. If not entitled to receive wages from the employer on sick days in accordance with the law for the protection of  workers, the insured will receive cash benefit at 50 percent of  the wages but not exceeding 90 days each period of sick leave  and not exceeding 180 days of sick leave per year. In the case of chronic diseases, the cash benefit is no more than for 365 days.

** In case of chronic diseases, upon death, the dependents or survivors of the insured will receive money for funeral grant and a death allowance as in the case of death.

Read complete details here.

Maternity

Qualifying Conditions	Medical Care	Cash Benefit
7 months contribution within the last 15 months	THB13,000 cash (max. 2 confinements for each insured person)	50% of wages 90 days (max. 2 confinements for each insured person)

The insured will receive coverage for child delivery expenses without limits. The rights are as follows:

1. The female insured may deliver a child at any hospital and will receive a lump sum for child delivery of 13,000 baht. The female insured will receive compensation benefits for maternity leave as well at a rate of 50 percent of the average wage for 90 days (The compensation for child delivery can be reimbursed not more than twice.).

2. The male insured having a wife and whose marriage is certified by a marriage license or a spouse living as husband and wife but without a marriage license will receive only a lump sum for child delivery of 13,000 baht.

Child Allowance

Qualifying Conditions	Cash Benefit
12 months contribution within the last 36 months	lump sum THB400/month/child – children < = 6 – not more than 2 children at a time

Child Allowance consists of monthly allowance paid to the first two children of the insured person below 6 years of age. This can be claimed if the contribution is paid for not less than 12 months within 36 months before the month of receiving benefits.

Invalidity

Qualifying Conditions	Medical Care	Cash Benefit
3 months contribution within the last 15 months	Reimbursement up to THB4,000/month	50% of wages for the whole life

In cases in which the disability is not so severe, compensation is as follows:

– Unable to work as normal or to follow other work: the insured is entitled to receive income replacement at the rate of 30 percent of daily wages in accordance with Section 57 for the period of time unable to work but for not more than 180 months.

Read complete details here.

Death

Qualifying Conditions	Cash Benefit
1 month contribution within 6 months before death	1. funeral grant THB40,000 2. grant fund for survivor     – contribution > = 10 years receive grant fund of 5 month          wages     – contribution 3 – 9 years receive grant fund of 1.5month wages

The dependents and survivors of the deceased receive payments for funeral grant of 40,000 baht in addition to death compensation as follows:

– In the case of having submitted contributions for more than 36 months but not for 120 months, the insured will receive compensation at the rate of 50 percent of the average wage for four months.

– In case of having submitted contributions for 120 months onwards, the insured will receive compensation at the rate of 50 percent of the average wage for 12 months.

Old Age Pension

Qualifying Conditions	Cash Benefit
* Retirement age is 55
* Contribute more than 180 months	*Pension 20% of average wage of the last 60 months and 1.5% per additional 12 months of contributions above 180 months
* Contribute more than 12 months but less than 180 months	*Lump sum equal to contribution from employee and employer plus interest
* Contribute less than 12 months	*Lump sum equal to contribution from employee

Benefits consist of lump sum amount or pension that an insured person will receive upon reaching the old age. This can be claimed if the contribution is paid for not less than 180 months, 55 years of age and cessation of being an insured person.

Unemployment

Qualifying Conditions	Cash Benefit
* 6 months contribution within 15 months before unemployment	*laid off insured persons receive 50% of wages up to 180 days within 1 year
* must register at the Public Employment Office as job seeker within 30 days after being unemployed	*voluntarily resignation receive 30% of wages up to 90 days within 1 year

1. Termination

                – Receive compensation during the period of unemployment at the rate of 50 percent of wages but for not more than 180 days each period.

                2. Resignation or end of contract with a specified employment period

                – Receive compensation during the period of unemployment at the rate of 30 percent of wages but for not more than 90 days each period.

                3. Unemployment due to force majeure

– Receive compensation in case of unemployment at 50 percent of the wage but not for more than 180 days each period.

Read complete details here.

Personal experience: I was a frequent visitor of a local hospital three years ago in the place where I work because of the two masses my doctor found in my lungs. After series of X-rays, more than 5 times I believe, my doctor was still not sure what those two masses were so he made an appointment for me to undergo a CT scan. I was told the cost of CT scan plays around 10k or more. But since I am insured, I didn’t pay a single dime. My medicines were covered, too. I thank God they’re now gone. Had my employer didn’t register me for a Thai social security, my medical bills would cost me a fortune for sure.

I encourage all Filipinos working in Thailand to obtain a Thai social security. You never know what might happen soon. It’s better to be ready than sorry.

Sources: Social Security Office, Thailand Social Security