The Employees Compensation Act (the “Act”) requires any employer with one or more employees to register those employees — with certain exceptions, such as government officials and private school teachers — with the Employees Compensation Fund (the “Fund”) at the Social Security Office. The Fund’s purpose is to compensate employees, or their estate, for lost wages resulting from an employment-related injury, illness, or death, as well as for the employee’s medical treatment, rehabilitation, or funeral costs.
Employers must contribute to the Fund by the end of January each year, at rates depending on the type of employer’s business and the nature of the employee’s work. Contribution rates range from 0.2% to 1% of the employee’s total annual pay. However, where an employee’s salary exceeds THB 240,000 per year, the base salary used for calculating the Fund contribution is capped at THB 240,000. If an employer fails to make a required contribution, it must pay the outstanding amount along with an additional penalty of 3% of the unpaid contribution per month of delinquency.
An employee’s eligibility for compensation benefits is determined by criteria set out in the Act, and where eligible, benefits are paid at rates prescribed by the Act depending largely on the severity of the case. Most commonly, compensation is paid monthly at 60% of the employee’s monthly wages, for a specified duration, to an employee who: is unable to work continuously for more than three days; has lost an organ; becomes disabled to the point of being unable to perform their work; or dies.
Where medical treatment is required as a result of a covered employee’s work, the employee’s actual and necessary curative expenses will be paid by the Fund — up to THB 45,000 for a “normal case” and up to THB 65,000 for a “serious injury.” An employee may also be eligible for compensation for curative rehabilitation expenses, not exceeding THB 20,000.
It should be noted that certain exceptions to an employer’s obligations, and to an employee’s eligibility for compensation under the Act, apply where the employee’s injury was caused by their own fault.