Unemployment Insurance : lesson learned from Thailand Rangsima - PowerPoint PPT Presentation

Social Security Office Unemployment Insurance : lesson learned from Thailand Rangsima Preechachard Social Security Office 1

Social Security Act Sep., 1990 : Social Security Act was implemented - Compulsory - Non work-related Coverage Stage 1 March, 1991 - enterprises with 20 or more employees Stage 2 Sep., 1993 - enterprises with 10 or more employees Stage 3 April, 2002 - enterprises with 1 or more employees Benefit 1991 : 4 types (sickness, maternity, invalidity, death) 1998 : extended old-age pension, child allowance 2004 : extended unemployment 2

Administration Organisation Social Security Office (SSO) was established in September 1990 under the Ministry of Labour to manage Social Security Fund and w orkmen’sCompensation 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 Categories Employers Employees Government Sickness Maternity 1.5% 1.5% 1.5% Invalidity Death Child Allowance 3% 3% 1% Old Age Pension 0.5% 0.5% 0.25% Unemployment (Contributions are calculated from wage base 1,650-15,000 baht / month)

CURRENT BENEFITS Sickness Maternity Child allowance Invalidity Old age pension Unemployment Death

Enterprises & Insured Person • Enterprises 403,728 • Insured Persons 9,126,792 30/11/2011

Ratio of benefit expenditure Sickness Maternity Invalidity Death Child Allowance Old-Age Unemployment 4,200.20 million THA 7% 10% 13% 54% 13% 2% 1%

Historical Background of UI in Thailand • Unemployment benefit was considered during the economic crisis in 1997 • 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 reenter to work as soon as possible

Qualification condition for benefit • 6 months contribution within 15 months before unemployment • Registered with the Dept. of employment as job seeker within 30 days after being unemployment

Cash benefit • The laid-off receive 50 per cent of wages up to 180 days within 1 year • The voluntary unemployed receive 30 per cent of wages up to 90 days within 1 year • The benefit begin paid on the eighth day as from the date becoming unemployment

Lose benefits • 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

Collaboration of Organizations for Unemployment Benefit • Department of Employment • Department of Skill Development • Social Security Office

Unemployment benefit expenditure mio THB 7,000 5,728.75 6,000 5,000 4,295.39 4,000 3,000 2,420.43 1,879.51 2,000 Economic 816.83 1,207.65 crisis 1,000 0 2005 2006 2007 2008 2009 2010

Recommendations • UI should start during the time of normal economic situation so that when the crisis comes, the unemployed can enjoy the benefit at the time that they need most.

Social Security Office THANK YOU 18