Pre-conference workshop: The Social Protection Floor Initiative Thailand Worawan Chandoevwit Research Director (Social Security) Thailand Development Research Institute Hong Kong Convention and Exhibition Centre June 10, 2010 Social Protection in Thailand • Coverage and financing • Learning from Thailand’s experience THAILAND Coverage of Social Protection Schemes Work Status Sickness and maternity Death and survivor Disability Child allowance Unemployment Pension: Defined benefit Pension: Defined contribution Government employee Stateenterprise employee Private employee in non-agr Private school teacher Other workers (selfemployed, agr employee) General tax revenue State enterprise revenue WCF and SSF + contribution from government PSTWF + contribution from government UC No No not relevant SSF No No No SSF No No Provident fund Provident fund PSTWF No not relevant General tax revenue GPF + contribution from government Notes: GPF = Government Pension Fund, WCF = Workmen’s Compensation Fund, SSF = Social Security Fund, PSTWF = Private School Teacher Welfare Fund UC = Universal Health-care Coverage Contributory scheme Non-contributory scheme Non-Contributory Social Protection Schemes • Financed by general tax revenues. • Government officials or civil servants receive medical care, pension, child allowance, death and disability benefits. • State-enterprise employee receives the same types of benefits as private employee, except they do not receive pension. • The non-contributory social protection scheme for non-employees is the universal healthcare coverage, started in 2001. • Social Assistance for the needy. Social Assistance • Social assistance programs in Thailand were initiated in 1941. • Target groups for social assistance are children, disadvantaged women, seniors, disabled individuals, homeless and beggars, low-income persons, ethnic minority, family in need, and people suffered from natural disaster. • Social assistance programs focus on counseling, training, in-kind assistance, and emergency accommodation. • Cash benefits are provided to disabled individuals, poor elderly and children whose parents are HIV infected receive cash assistance. • The cash assistance programs are not universal. The decision for providing benefits is decentralized to local government, which means that recipients are based on selection by provincial administrator and Tambon Administration Organization (TAO). • Monetary assistance has been low since the Ministry of Social Development and Human Security received a small budget compared to other ministries. POOR MINISTRY TAKES CARE OF THE POOR AND UNDER PRIVILEDGE. Contributory Social Protection Schemes • Financed by stakeholders • Social Security Fund and Workmen’s Compensation Fund for private employee in non-agricultural sector. • Private School Teacher Welfare Fund – for private school teacher. • Provident Fund – for state enterprise employee and private employee. • Government Pension Fund – defined contribution Equity Issue: Healthcare coverage 2006 2007 2008 Civil Servant Medical Benefit Scheme (CSMBS): bil of Baht 37.00 46.48 54.90 No. of register persons under CSMBS: million 4.06 4.24 4.28 Social Security Scheme (SSS): bil of Baht 16.81 17.88 19.29 No. of employee under SSS: million 8.54 8.87 8.82 Universal Healthcare Coverage (UC): bil. of Baht 48.25 75.13 76.60 No. of people under UC: million 47.54 46.67 47.39 Efficiency Issue: CSMBS expenditure mil. of Baht 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 outpatient inpatient Incentive to Work Issue: UI Long Term Fund Stability Issue: SSF pension