Thailand Increases Worker’s Compensation Benefits | Mercer

Thailand Increases Worker’s Compensation Benefits

Our Thinking / Law and Policy Group /

Thailand Increases Worker’s Compensation Benefits
Thailand Increases Worker’s Compensation Benefits
Calendar29 January 2019

Employees’ health benefits have been expanded under changes to Thailand's worker's compensation law (Thai) effective 11 Dec 2018. Highlights of the revisions include the following:

  • Medical or rehabilitation expenses payable to private-sector employees who suffer a work-related injury or illness, death or disappearance are no longer capped. (Medical benefits had been capped at THB 2 million.) Employers also must pay funeral expenses to an employee's heirs.
  • Employer-paid indemnification has increased to 70% of the employee's wages, capped at 10 years (up from 60% and eight years). Indemnities are payable when:

─     The employee loses a limb or an organ.

─     The employee is no longer able to work due to work-related reasons.

  • In the case of employee disability, the indemnity is calculated over a minimum reference period of 15 years. (The period previously had been capped at 15 years.)
  • The heirs of an employee who goes missing or dies as a result of his or her work receive an indemnity payment of 70% of monthly pay, capped at 10 years.
  • The sanctions for employers that don’t pay the required amount of employee contributions have dropped to 2%, down from 3% per month calculated over the total period for which the employer should have paid contributions. The employer surcharge in these circumstances will change.

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