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SSO Cracks Down on Defaulting Employers: New Unit Targets Unpaid Social Security Contributions

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As the sun dipped below the horizon in the Bang Sao Thong district of Samut Prakan, a somber scene unfolded. Workers, clutching their belongings, gathered outside a shuttered clothing factory, their faces etched with uncertainty. The abrupt closure had left them jobless and at sea, an unforeseen twist in the already turbulent year of 2021. (Photo: Sutthiwit Chayutworakan)

Against this backdrop, the Social Security Office (SSO) is gearing up to tackle a pressing issue: employers who have shirked their duty to pay into the mandatory Social Security Fund. However, the office candidly admits that it lacks concrete data on how many companies have defaulted or the total amount in arrears. “We expect this to take about a month to compile,” stated Boonsong Thapchaiyuth, the SSO’s dedicated secretary-general.

Determined to address the problem, the SSO has resolved to establish a permanent unit expressly for pursuing delinquent employers. “This unit will lay out an action plan and a timeline for tackling this pressing issue,” Boonsong elucidated. The recovered funds are eagerly anticipated, potentially enhancing Social Security Fund services, ranging from medical treatments to allowances for the disabled, maternity leave, children’s support, and funeral costs for fund recipients.

Within the social security system, both employees and employers are required to contribute monthly. Employers must deduct their employees’ contributions and send these, along with their own, to the SSF. However, anecdotal evidence suggests that many employers halted these payments during the financially crippling Covid-19 pandemic.

With a stark warning, Mr. Boonsong urged employers to reconcile their payments and promptly settle any overdue contributions. The SSO is diligently building a comprehensive database to capture a clear picture of the problem. Once operational, it would enable the office to methodically address the issue and recover the owed funds efficiently.

Reassuringly, Mr. Boonsong emphasized that despite employers’ contribution lapses, employees would not lose their social security benefits as the office has bridged the gap. “The welfare of the employees remains our top priority,” he stated.

Niyada Seneemanomai, an SSO spokeswoman, highlighted another troubling practice. Some companies have deducted contributions from workers’ pay but failed or outright refused to hand these over to the SSO, leading to a flurry of complaints from affected workers. “If verified that the fault lies with the employer, employees’ social security benefits remain intact,” Niyada affirmed.

Employers who persist in neglecting their duties will face penalties. Failing to send employees’ contributions to the SSO on time will result in a fine—2% of the outstanding contributions per month. This measure is expected to incentivize timely payments and bring a semblance of order to the tumultuous landscape of social security contributions.

In the end, the efforts by the SSO symbolize a determined march toward greater accountability and support for the very workforce that keeps the wheels of the economy turning, a silver lining in these challenging times.

39 Comments

  1. Samantha Lee August 1, 2024

    I think it’s great the SSO is finally taking action. Too many companies take advantage of their workers.

    • JohnD August 1, 2024

      But the real question is, why did it take them this long? These issues have been around for years!

      • Grower134 August 1, 2024

        Exactly. The pandemic just exposed what was already a massive problem.

      • Samantha Lee August 1, 2024

        Very true. Hopefully, this new unit will bring some real change.

    • Karen P. August 1, 2024

      Sometimes bureaucracies move too slowly. Any action is better than no action.

  2. Tom Y. August 1, 2024

    Isn’t this just another way for the government to squeeze money out of businesses? The pandemic hit everyone hard.

    • Sarah Mills August 1, 2024

      But businesses have a duty to their employees. They can’t just pocket employees’ contributions.

    • Tom Y. August 1, 2024

      True, but the government should also support businesses during these tough times. It’s a two-way street.

    • Matt D. August 1, 2024

      Supporting businesses is one thing, but letting them exploit workers is another. There must be accountability!

  3. Eduardo August 1, 2024

    If employers are fined 2% per month, won’t they just pass those costs onto their employees in other ways?

    • Lily Patterson August 1, 2024

      That’s possible, but at least the fines would discourage them from defaulting in the first place.

    • Eduardo August 1, 2024

      I hope so. But sometimes these measures just penalize the employees further indirectly.

  4. Kim J. August 1, 2024

    I lost my job due to the factory closure and still haven’t seen my social security benefits. What gives?

  5. Paul Chang August 1, 2024

    So tired of government agencies making promises they can’t keep. Show us results, not just plans!

  6. Economist123 August 1, 2024

    Any systemic change will take time and effort. The creation of this new unit is a positive step.

  7. Maggie R. August 1, 2024

    This entire system is broken. Small businesses can hardly survive, let alone pay fines.

  8. Oliver W. August 1, 2024

    People act like businesses are the enemy. They’re providing jobs. Maybe cut them some slack?

  9. Prof. A. Singh August 1, 2024

    Accountability is necessary for a healthy economy. Rigorous enforcement ensures fairness for all.

  10. Patricia M. August 1, 2024

    It’s about time employees got some protection. We’re the backbone of the economy, not corporate profits.

  11. James August 1, 2024

    This is just going to push more companies to operate off the books. Less regulation is the answer.

    • Matt D. August 1, 2024

      Less regulation just means more exploitation. We need oversight to protect employees.

    • Rebecca L. August 1, 2024

      True, but too much red tape stifles growth. It’s all about finding a balance.

    • James August 1, 2024

      Exactly! Balance is key, but right now, we’re tipping too far towards overregulation.

  12. Amnat August 1, 2024

    It’s all well and good in theory, but how do they plan to enforce these fines?

    • Michael Green August 1, 2024

      Good point. Fines are only effective if they can be enforced. Otherwise, they’re just empty threats.

    • Samantha Lee August 1, 2024

      Legal action, perhaps? Though it could be costly and time-consuming.

  13. Rajiv August 1, 2024

    Why isn’t there more focus on helping businesses comply rather than just punishing them?

    • Daniel W. August 1, 2024

      Maybe compliance support is part of the long-term plan. You can’t just punish without offering solutions.

    • Rajiv August 1, 2024

      I hope so. Otherwise, it’s like setting up businesses to fail.

  14. Nina K. August 1, 2024

    Companies should be barred from taking deductions from employees if they won’t forward the contributions!

  15. Tom Y. August 1, 2024

    A governance overhaul is needed. This piecemeal approach won’t solve the problem.

  16. Amy F. August 1, 2024

    The SSO’s new unit is a step in the right direction. Let’s give them a chance to prove their effectiveness.

  17. JohnD August 1, 2024

    Does anyone have faith that these contributions will actually be used properly?

    • Sarah Mills August 1, 2024

      Unfortunately, corruption is always a concern. Vigilance is key.

    • JohnD August 1, 2024

      Exactly. And citizens have every right to question and hold their government accountable.

  18. Oliver W. August 1, 2024

    Maybe we need more transparency about how these funds are used.

    • Patricia M. August 1, 2024

      Absolutely. Transparency would build trust and ensure the funds go where they’re needed.

  19. Kim J. August 1, 2024

    Transparency won’t happen without continued pressure from the public and media.

  20. S.A. August 1, 2024

    This unit should also look into past frauds and recover money.

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