- within Employment and HR and Accounting and Audit topic(s)
- with Senior Company Executives and HR
Thailand has approved changes to its social security contribution framework effective 1 January 2026. These changes introduce a higher wage ceiling for calculating monthly social security contributions, affecting both employers and employees.
Key impact
- A higher wage ceiling will expand the base for monthly contribution calculations.
- Both employees and employers will experience corresponding increases in contributions from 2026 onward.
Higher wage ceiling for social security contributions
The monthly wage ceiling to calculate social security contributions will be increased progressively, with adjustments scheduled every three years and this will result in a gradual rise in the maximum contribution amounts.
Given that the current contribution rates for both employers and employees are set at 5%, the maximum monthly contribution required from each party will increase from THB 750 to THB 875 in 2026.
| Phase | Monthly wage ceiling | Maximum monthly contribution |
|---|---|---|
| Current (Before 2026) | THB 15,000 | THB 750 |
| 2026-2028 | THB 17,500 | THB 875 |
| 2029-2031 | THB 20,000 | THB 1,000 |
| 2032 onwards | THB 23,000 | THB 1,150 |
The minimum wage used as the basis for calculating contributions will remain at THB 1,650 per month.
Enhanced social security benefits
As several benefit calculations are directly linked to the wage ceiling, the planned increase in the cap is anticipated to enhance entitlements across multiple benefit categories. These include, but are not limited to:
- Medical and disability compensation
- Maternity benefits
- Death compensation
- Unemployment allowances
- Retirement pension benefits for long term contributors
These recalibrations are intended to reinforce the long term sustainability of the social protection system and improve the overall adequacy of benefits provided to insured people.
Actions required for employers
- Review payroll systems to ensure the updated wage ceiling is applied from January 2026.
- Communicate upcoming contribution changes to affected employees.
- Assess budgetary or cost impact implications for 2026.
Impact on employees
Employees whose earnings meet or exceed the revised wage ceiling can anticipate the following implications:
- Modestly higher monthly contribution deductions
- Improved financial protection and broader benefit coverage
- Enhanced long term retirement outcomes
Our Comments
The increased wage cap serves better alignment of contribution levels with future benefit entitlements, particularly in the context of retirement planning. Overall, these reforms are designed to strengthen the long term sustainability of Thailand's social security system while simultaneously enhancing the adequacy and quality of benefits provided to insured individuals.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
