Thai Government Increases Social Security Contribution Rates Effective From January 1st, 2026
- leowatanabe5
- 6 days ago
- 2 min read
The Thai government has published a revised social security contribution regulation in the Royal Gazette on December 12th, 2025. The regulation introduces a phased increase to social security wage ceilings that will ultimately impact employer costs and employee benefits from the start of 2026 onwards. For foreign companies operating in Thailand with staff employed here, this is a critical compliance issue requiring immediate payroll adjustments.
The Three-Phase Social Security Increase Implementation Structure
The revised Social Security Act Section 33 introduces wage ceiling increases in three distinct phases that last three years each to allow employers the time to adjust gradually:
Phase 1 (January 2026 – December 2028): The maximum wage ceiling rises from THB 15,000 to THB 17,500 per month. This means the maximum contribution for the employer and employee increases by 17% from THB 750 to THB 875.
Phase 2 (January 2029 – December 2031): The ceiling climbs to THB 20,000 per month which would raise the maximum contribution to THB 1,000 per party monthly (33% increase).
Phase 3 (January 2032 onward): The ceiling would reach THB 23,000 per month, and contributions would be capped at THB 1,150 per party monthly (53% increase).
The contribution rate remains fixed at 5% for both employers and employees, and the minimum wage threshold stays constant at THB 1,650 per month.
Higher Contribution Rates Lead to Extended Employee Benefits
Workers who are covered by Social Security will access significantly improved coverage across multiple categories from January 2026 onwards:
Income replacement benefits (sickness, disability, and unemployment compensation) increase from THB 7,500 to THB 8,750 per month.
Retirement pensions for employees contributing for 15 years increase from THB 3,000 to THB 3,500 monthly, while employees contributing for over 25 years would receive THB 6,125 instead of THB 5,250.
One-time benefits payments also increase for maternity allowances to THB 26,250 per birth, and death compensation increases from THB 90,000 to THB 105,000.
Practical Implications for Foreign Companies
Foreign companies operating in Thailand are urged to review and update their payroll systems to reflect the new contribution calculations that are effective from January 1st, 2026. The Social Security Office requires monthly contribution submissions by the 15th of the following month. Employers should also prepare clear communication to their employees regarding the increased contribution rate to prevent surprises upon receiving payslips.
Actionable Steps (by the end of 2025):
Audit current payroll systems for January 2026 compliance capability
Calculate revised contribution amounts across all employee tiers
Communicate changes to the accounting and HR teams
Budget revisions reflecting increased employer contributions through 2032
For more information regarding payroll compliance, contact us at contact@bizwings.co. Our expert payroll team is ready to navigate these regulatory changes and to help our clients transition smoothly to the increased contribution rates. Our payroll service will be updated prior to January 2026 to reflect the correct social security contribution rates for all our payroll clients.