Recently, the Thai cabinet has approved, in principle, a Mandatory Provident Fund or “National Pension Fund”, a major step towards enactment. This act has raised many questions among employers and employees alike on what it is and what needs to be prepared once the law finally takes effect.
Is it compulsory to pay Provident Fund?
But pension and provident funds exist for the benefit of their members, who are workers and pensioners. Usually it is compulsory to become a member of a fund. This means that a worker does not choose whether to belong to the fund or not, the worker must belong to the fund if the employer has a fund.
What is Thailand Provident Fund?
Provident Fund is on a voluntary basis which jointly set up by employees and employer. The purpose of the fund is to encourage savings and provide benefits for employees and their families in case of deaths in the event of the employees’ retirements, disabilities, or resignation from the company.
What is the mandatory compensation benefit in Thailand?
Mandatory employee benefits in Thailand include life-death coverage, disability (invalidity benefits), medical treatment coverage, maternity benefits, child allowance, old age benefits, workman’s compensation (WCF), and unemployment.
Do you get Provident Fund if you are dismissed?
The money in your provident fund, as reflected on your latest benefit statement, belongs to you (even if your employer made all the contributions). It does not matter whether you are resigning, or you are retrenched or dismissed, this money is yours, and you can cash it in or transfer it to another fund.
Can I check my provident fund balance?
To check your EPF account balance on the EPFO portal, you must have an active Universal Account Number (UAN). To check your balance, you will have to visit https://passbook.epfindia.gov.in/MemberPassBook/Login.jsp and enter your UAN and password. The website allows you to view and download your EPF account statement.
What should I do with my PF if I resign?
At resignation you have the following options:
- To transfer the full or a partial amount to a preservation provident fund, new work pension or provident fund or a retirement annuity; or.
- Withdraw a portion or the full amount in cash.
Is provident fund tax free?
The main USP of the Employees’ Provident Fund (EPF), apart from safety and high returns (compared to other fixed options such as PPF, FD), is that it has exempt-exempt-exempt tax status. That is, it is exempted from tax at the time of maturity.
When can Provident Fund be withdrawn?
Also, one can withdraw up to 90 per cent of one’s corpus, at the age of 54 years, 1 year before retirement. After leaving a job, one can withdraw 75 per cent of their provident fund balance if he/she remains unemployed for 1 month and the remaining 25 per cent after the 2nd month of unemployment.
Does Thailand have unemployment benefits?
Unemployment benefits are available in Thailand. To benefit the person must have made contributions for at least six months during the 15 months prior to being made unemployed. There are a number of criteria to fulfil in order to claim for unemployment benefit.
What is social security fund in Thailand?
The Social Security Fund (SSF) was established under the Social Security Act B.E. 2533 to provide employment security and stability for Thai citizens. An employee, being over fifteen years of age and not more than sixty years of age, shall be classed as an insured person.
What is the mandatory compensation?
The term mandatory employee benefits refers to the programs all employers are legally required to provide their employees. Mandatory benefits include unemployment insurance, workers’ compensation, and disability insurance.