Vietnam and Thailand both cap social insurance, but on different philosophies: Vietnam caps at 20× base salary for all wage levels, while Thailand caps at a fixed THB 17,500/month (from 01/01/2026, pre-legislated to THB 23,000 by 2032). For a 200-worker factory above the ceiling, Thailand is far cheaper.
Thailand: THB 17,500/month ceiling — max THB 875 per side
Thailand’s Social Security Fund (SSF, Section 33): 5% + 5%, wage floor THB 1,650, ceiling THB 17,500/month from 01/01/2026 — maximum THB 875/person per side. A pre-legislated schedule: ceiling rises to THB 20,000 in 2029 and THB 23,000 in 2032. WCF (work injury): 0.2–1% employer-only. Foreigners on work permits contribute like Thais.
The meaning: every worker earning above THB 17,500 contributes identically — THB 875/month employer side, whether wages are THB 20,000 or THB 60,000. Thailand’s SI cost is a fixed flat amount for high-wage labor.
Vietnam: 20×-base-salary cap — high wages pay more
Vietnam (SI Law 41/2024/QH15): employers pay 21.5% (Vietnamese) / 20.5% (foreigners) on actual salary, capped at 20× base salary for SI/HI. The cap is pegged to the state base salary — when base salary rises, the cap rises with it.
For workers earning VND 15–25 million/month (below the current cap): Vietnam charges 21.5% on the full wage — many times Thailand’s fixed THB 875 (~VND 600,000). Only when wages exceed 20× base salary does Vietnam’s cost “freeze.”
Side by side: fixed ceiling vs base-salary-pegged cap
Mechanism: Thailand — absolute monetary ceiling (THB) with a published 6-year schedule. Vietnam — base-salary multiple, changing whenever the state adjusts base salary.
200-worker factory at VND 20 million (~THB 25,000): Thailand — 200 × THB 875 = THB 175,000/month (~VND 140 million). Vietnam — 200 × 21.5% × VND 20 million = VND 860 million/month. A gap of ~6× — because VND 20 million far exceeds Thailand’s ceiling but sits below Vietnam’s.
The crossover: only for extremely high earners (above 20× base salary) does Vietnam’s cost stop rising with wages — while Thailand “freezes” from THB 17,500.
Practical recommendations
First, in Thailand: budget SI as a flat amount — THB 875/person/month for all workers above the ceiling; build the ceiling schedule (THB 20,000 in 2029) into long-term budgets. Second, in Vietnam: track every base-salary adjustment — the 20× cap rises with it, “automatically” raising SI costs for the high-wage group. Third, when comparing factory locations, don’t compare bare percentages — Thailand’s 5% beats Vietnam’s 21.5% not only because the rate is lower, but because the absolute ceiling is far lower.
Frequently asked questions
What is Thailand’s SI ceiling now?
THB 17,500/month from 01/01/2026 (SSF 5% + 5%): maximum THB 875 per side. Pre-legislated schedule: THB 20,000 in 2029, THB 23,000 in 2032.
What is Vietnam’s SI cap?
20× base salary for SI and HI (Law 41/2024/QH15). Employers pay 21.5% (Vietnamese) or 20.5% (foreigners) on actual salary within the cap.
200 high-wage workers: Thailand or Vietnam cheaper?
Thailand by far: 200 × THB 875 ≈ VND 140 million/month vs 200 × 21.5% × VND 20 million = VND 860 million/month in Vietnam — ~6× gap, because wages far exceed Thailand’s ceiling but sit below Vietnam’s.
Do foreigners in Thailand pay SSF?
Yes. Foreigners on work permits join SSF like Thais: 5% + 5% within the ceiling. On leaving Thailand, they may claim a refund of the employee portion within 2 years.
How does Thailand’s ceiling schedule affect planning?
Ceiling rises to THB 20,000 (2029) and THB 23,000 (2032): maximum per side rises to THB 1,000 then THB 1,150. Companies should build this into long-term budgets now.
For detailed advice on social insurance in Thailand or Vietnam, companies may contact FLAT Law Firm.
This article has been quality-reviewed by the FLAW AI Legal Council