Exiting the Covid-19 Lockdown
Thailand was one of the first countries outside of China to report cases of Covid-19. However, with the implementation of lockdowns and social distancing measures, the nation saw a little over 3000 cases with only double-digit deaths recorded.
The low infection rate has allowed the government to relax its measures, making Thailand one of the first countries to start exiting from lockdown. With such effective governance over the Covid-19 pandemic, onlookers and investors will gain confidence in Thailand.
The Hammering of the Thai Economy
Thailand’s economy has received a hard hit from the coronavirus. The strong reliance on exports and the developed tourism sector have all been placed on standstill as travel restrictions have been enforced by most countries.
The gradual reopening of Thailand will provide a window to the future for other countries on economic recovery.
Policies to Fight the Economic Impacts of Covid-19
The Thai Government have implemented various measures to fight the economic knockback. Cushioning the blow for businesses will be an important strategy to sustain economic growth and attract foreign investment. Here are a few examples of policies the government are introducing to help business and employees:
- Reduction in Social Security Contributions: In response to the coronavirus, both employers and employees can reduce their contribution rate to the Social Security Fund (SSF). A temporary reduction of SSF contributions from 5% to 1% for employees and 5% to 4% for employers lasted from March till May 2020.
- Increased Unemployment Benefits: Unemployed individuals are able to receive benefits for up to 200 days, capped at 15,000 Baht.
- Resigned: 30% to 45% of the wage paid, for a maximum period of 90 days (Max. 15,000 Baht).
- Terminated: 50% to 70% of the wage paid, for a maximum period of 200 days (Max. 15,000 Baht).
- Loans for SMEs: Low-interest rate loans are available for SMEs at up to 3 million baht.
- Deduction of Salary Costs for Corporate Tax: Eligible SME’s can deduct 300% of salary costs paid to employees for corporate tax income purposes from April to July 2020.
Learn About Thailand’s Labour Law with Links International’s Webinar
These policy examples only scratch the surface of the measures Thailand are implementing. Links International will be holding a webinar to cover the latest labour law and compliance updates. If you are planning to expand your business into Thailand or simply would like more knowledge on the country, then this is a great opportunity to learn more.
|Host:||Tu Nguyen & Phawina Abudoem|
|Date:||Wednesday 3rd June 2020|
|Time:||2:00pm – 3.30pm|
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Links International is an industry leader in innovative HR outsourcing with services such as payroll outsourcing, visa application, Employer of Record (EOR), outplacement, recruitment and more! Contact us for more information on how we can help leverage your HR function.