Five Financial Steps to Take After an Unexpected Layoff

In recent years, the term “Layoff” has become increasingly common. No one wants to experience it themselves, but it is becoming more of a reality for many.

Some people anticipate it, some notice warning signs, but many are called into a meeting room one workday and leave with documents that immediately change their lives.

After giving yourself time to compose, try to manage both your “money” and “mind” by following these five steps.

1. Check your entitlements and severance pay.

The first thing to do is understand what you are entitled to from your employer, such as:

• Severance pay according to labor law (calculated based on years of service, for example, 90 days for 1 to under 3 years of work, or 400 days for 10 years or more).
• Payment in lieu of notice (if applicable).
• Remaining vacation days, bonuses, and other benefits.

From a tax perspective: severance pay due to layoff is exempt from income tax up to the equivalent of 400 days’ wages (not exceeding 600,000 baht). Be sure to check the Withholding Tax Form 50 (50 ทวิ) issued by the company, which should specify "layoff."

2. Register as unemployed.

Don't forget to register as unemployed with the Department of Employment to receive social security benefits. Although this amount may not cover your previous lifestyle, it can significantly ease financial pressure during this period.

In the event of a layoff, you are entitled to compensation for income loss equal to 60% of your wages (up to a maximum base of 15,000 baht) for no more than 180 days (6 months).

3. Communicate with your family about finances.

Many people choose to keep this to themselves to avoid stressing their household, but in reality, silence often causes more worry than honesty. Often, what we think we must bear alone is something everyone can help handle together.

If you have a spouse, parents, or children, find time to talk, explain the situation truthfully, and plan together how to adjust over the next 3 to 6 months, especially regarding spending and obligations.

4. Adjust your spending plan.

When your main income temporarily stops, your spending plan must change accordingly. Try dividing expenses into three categories:

• Essential for living.
• Important but can be delayed.
• Desirable but not necessary yet.

Reducing expenses during this time buys you more time and options. The goal is not to save every penny at the cost of happiness but to stretch your cash as long as possible.

If you have mortgage, car loans, or other debts and expect difficulty making payments, the worst thing is to stay silent. Contacting creditors early might offer better options.

5. Maintain health coverage.

During unemployment, many try to cut all costs, including health insurance premiums. However, illness without a job can cause far more severe financial impacts than expected.

Remember to check:

• How long your employer’s group insurance coverage lasts.
• Whether your social security rights remain active.
• If your personal insurance policies are still being paid continuously.

Because when income is uncertain, what you need most is to reduce uncontrollable risks like medical expenses.

Conclusion

Being laid off is something no one wants, but it does not define your worth.

Jobs can disappear, positions can change, and income can be disrupted, but your experience, knowledge, skills, and identity remain intact.

Take good care of your finances and your mental health, and don’t forget to let your loved ones help take care of you as well.

Sometimes, overcoming a crisis does not mean fighting alone but allowing those around you to understand, support, and walk with you.

Read personal finance news and financial planning with Thairath Money to help you “Have Good Finances, Have a Good Life.”https://www.thairath.co.th/money/personal_finance

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