Thai Government Initiates 5,000 Baht Support For Workers Not In The Social Security Program
The necessary measures to shield the public from COVID-19 have gone into effect in Thailand in April 2020. The Thai government financial support will help millions of people in the informal sector, who are not registered in the Social Security programs.
As of March 30th 2020, the Thai government has graciously agreed to provide relief of Baht 5,000 per month for a period of 3 months (April – June). I believe this initiative will help many of the poor who will be unable to earn an income during the quarantine and lockdown period.
The following article is a translation of the article posted in Thai at Techsauce.co.
I cannot personally verify the correctness of the Techsauce post, I am only sharing this in English for people who cannot read Thai so that you can understand the announcement.
‘We will not leave each other’ – COVID-19 Financial Support
March 25, 2020 | Writers: Techsauce Team
The following is an announcement describing the second phase of measures to try and look after and remedy the economic impact of the epidemic of COVID-19.
These measures are being initiated by the Cabinet and the Ministry of Finance on March 24 and will be open for registration on Saturday, March 28th.
These are measures to assist the 3 million temporary non-partisan, self-employed, independent workers’ affected by COVID-19.
From my understanding, this includes people that drive taxis and motorcycles, run small stores and food stall, hostesses, maids and a host of other people not on social security.
In this program, the government will compensate people 5,000 baht per month of lost income for a period of 3 months between April – June 2020
4 Steps to Applying for this Program
1. Checking qualifications of Applicants
The qualification is that the beneficiary must be a worker of some kind, earning a salary (note: this isn’t very clear in the translation. I will try to find more details).
Temporary workers and self-employed people not registered in the social security system or those economically affected by COVID-19 (i.e. due to temporary closure of the COVID-19 risk areas).
It includes workers from a business that was forced to close due to the possibility of virus spread (i.e. boxing stadiums, sports stadiums, entertainment venues, spas, fitness centres, etc.).
Those registered in the social security system will receive 50% of their wages, under the following 2 conditions:
- The affected employee can receive payments for no more than 180 days or
- The program will end if the state decides to cease the program of payments within 90 days.
2. Documents Needed
Applicants must have the following documentary evidence:
- Thai ID card
- Tabien Baan
- Any proof of wages from employer. (this bit makes no sense in the case of self-employed or temporary workers)
3. Registration Procedure
Registration begins this Saturday, March 28th via the 2 channels below:
- Via the web on www.เราไม่ทิ้งกัน.com. This site will be live on Saturday. If this link doesn’t work, try the one at the Techsauce site at point 3
- Through participating state banks, namely: Government Savings Bank, Krung Thai Bank and the Bank for Agriculture and Agricultural Cooperatives (BAAC).
The bank sites do not seem to mention this program and probably require applicants to visit branches. Be prepared that many staff at these branches may not be trained or properly prepared for this program.
4. Receiving Financial Compensation
After successful registration, applicants will receive the first payment of 5,000 Baht five days after registration.
Thereafter, payment will occur again probably at the end of April (end of the program).
The money will be transferred to the Prompt Pay account linked to the citizen ID number or by bank transfer to the payee’s savings account
Summary of Program Remedy for Temporary Labour Employees
(employees, freelance workers, entrepreneurs and businesses affected by COVID-19)
The Cabinet and the Ministry of Finance announced additional measures for the public sector that focus on increasing liquidity for business. There is a program tax relief to reduce the impact of business closures.
Private Sector Measures
1. Measures to increase the liquidity private sector business
- Support of 5,000 baht per month, maximum of 3 months
- Loans of 10,000 baht at an interest rate of 0.1 per cent. No collateral will be required.
- Collateralized loan of 50,000 baht with an interest rate of 0.35 per cent.
- Thananukroh Office Pledge also offers a low-interest loan in the amount of 2,000 million baht with an interest rate of not more than 0.125 per cent per month. I do not have a link for this site but it may possibly be found here.
2. Reducing the Financial Burden
- The Revenue Department has extended the time to submit forms and pay personal income tax until August 2020 and to prepare and expedite tax returns.
- An announcement to increase and decrease health insurance premiums in the range of 15,000 baht to 25,000 baht. (Note: translation is not clear to me so it’s hard to explain)
- Income Tax Exemption for Workers with COVID-19. Details are not given. Possibly look at the Revenue Department website for more details.
Additionally is recommended to meet with your financial institutions and discuss ways to prevent unfair seizure (foreclosures) of business or property during the period of the epidemic.
3. Training and Teaching Vocational Skills
Through various programs such as the Royal Project Village Fund Foundation under the Ministry of Higher Education, Science and Innovation Research.
I am not clear what relief is being offered so you will have to do some research.
Measures for Entrepreneurs and Businesses
1. Retail liquidity Loan of 3 million Baht – This is a per individual loan with 3 per cent interest for the first 2 years, not exceeding 10,000 million baht.
This is being offered by the Small and Medium Enterprise Development Bank of Thailand SME Bank.
There is no information on whether or not collateral is required but given the amount, I suspect it is. In my own experience with that bank, collateral is usually 100% of the loan value.
2. Tax Benefits
- Corporate income tax (PND 50) postponed until August 2020 and PND 51 postponed until September 2020
- All types of revenue tax, such as VAT, specific business tax are postponed past the 1-month payment deadline. No detail on how long. Presumably, this means at the end of May.
- Excise tax submission postponed for 3 months from March 1 – May 31, 2020. Tax is to be paid 15 July 2020.
- Excise tax on Oil and Oil product business operators postponed by 10 days to the 15th of the following month. This lasts for 3 months.
- Exemption of import duty on any COVID-19 protection products for 6 months or around September 2020
- Tax exemptions and fee reductions from non-bank debt restructuring, such as personal loans or hire purchase, from 1 January 2020 to 31 December 2021.
As mentioned at the start of the article, this information was translated with Google Translate and cleaned up by myself. I therefore take no responsibility for the veracity of this information.