After Raising the Wage Ceiling, Social Security Contributions Increase from a Maximum of 9,000 to 13,800 Baht per Year: What Do We Gain?

Those who pay into social security should prepare now! Starting in 2026, monthly contributions will increase. However, higher payments will bring expanded rights and benefits. What do we need to know? Thairath Money has compiled the key details here.

What is social security?

The social security system is a welfare system for workers. Contributors pay into the fund, with additional contributions from the government and employers (in certain categories). Benefits and coverage include illness, unemployment payments, death, old age, and more, depending on the category. The system is divided into three categories. They are

• Category 33 for employees, usually salaried workers, where employers co-contribute under specified conditions. Coverage includes seven cases: injury or illness, childbirth, disability, death, child support, old age, and unemployment.
• Category 39 is for voluntary contributors who have left Category 33 employment but wish to maintain social security payments. Eligibility requires more than 12 months of prior contributions and resignation within six months before applying (commonly those transferring to Category 39 to retain hospital treatment rights). Coverage includes six cases, excluding unemployment benefits found in Category 33.
• Category 40 is for the general public and self-employed workers without Category 33 or 39 coverage. It provides protection in five cases, excluding unemployment and childbirth benefits.

These three categories remain as before, but the latest change involves raising the wage ceiling, effective next year. What are the details?

Social security "upgrade": what additional benefits do we get?

There has been much discussion on social media after the Cabinet on 2 Dec 2025 approved the draft ministerial regulation to set new minimum and maximum wages as the basis for social security contributions. Starting in early 2026, contributors will have to pay more. The details we need to know are:

1. Higher wage ceiling means higher contribution payments.

Currently, regardless of salary or income, social security sets a maximum "wage ceiling" of 15,000 baht. This means contributors pay a maximum of 750 baht per month (9,000 baht per year). From 2026 onward, the wage ceiling will be gradually increased in three phases:

- Phase 1: Years 2026–2028: Maximum wage ceiling raised to 17,500 baht, with maximum contribution of 875 baht per month (10,500 baht per year).

- Phase 2: Years 2029–2031: Maximum wage ceiling raised to 20,000 baht, with maximum contribution of 1,000 baht per month (12,000 baht per year).

- Phase 3: From 2032 onward: Maximum wage ceiling raised to 23,000 baht, with maximum contribution of 1,150 baht per month (13,800 baht per year).

2. Paying more means higher compensation and allowances.

Naturally, increased contributions will raise benefits and entitlements accordingly, as shown in this table...

How does the new pension formula differ from the old?

While the wage ceiling adjustment is notable, the major focus has been on the revised pension calculation formula, which has been in use for some time. Key points everyone should know include:

The old pension formula is

• for those who contributed at least 180 months (15 years), monthly old-age pension is 20% of the average wage during the last 60 months of employment.
• If contributions exceed 180 months, the pension is calculated as above, plus an additional 1.5% per year for the extra months beyond 15 years (partial years are disregarded).

A drawback of the old formula is that if the salary decreases in the last 60 months before retirement, the pension amount will also decline accordingly.

The new formula calculates pension based on the average wage throughout the entire working life multiplied by the pension rate (20% for 15 years contributions, plus 0.125% per month or 1.5% per year for contributions beyond that) and the pension points, calculated as per the Social Security Office conditions.

This new formula addresses the unfairness if a contributor’s salary drops in the final 5 years before retirement, since it uses the average wage over the entire working period.

Overall, employees will receive increased benefits and compensation compared to before. However, they will also pay more—up to 13,800 baht annually under the new formula, meaning contributors bear an additional 4,800 baht per year compared to the previous maximum of 9,000 baht. This raises the question: is this higher cost truly justified for employees?

Source: Social Security Office, Ministry of Labor [1] [2]

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