Covid-19 and Thai Government Policy
COVID-19
The Government Policy with the purpose to aid people in the second wave of Covid-19 Outbreak
To ease people’s financial burden during the second wave of the COVID-19 outbreak in Thailand, the cabinet approved the relief measures as set forth below:
- On 20 January 2021, the Cabinet approved two monthly payments of 3,500 baht for “We Win” scheme as proposed by the Ministry of Finance to approximately 31.1 million people. The payment will be provided from February to March 2021 through the application “Purse”. This measure has been designed to ease people financially such as cost of living expenses, during the second wave of Covid-19 Outbreak.
Eligible persons including but not limited to informal workers, freelancers, farmers and state welfare card holders and others who are not covered by the social security system (with less than 500,000 baht in savings account) will be able to register via www.on we win on 29 January 2021.While, public official, state enterprises, high income persons and employees under social security system are not allowed to benefit from this measure and are not allowed to receive the payment under this scheme. - The third phase of “half-half co-payment” will open for registration on 25 January 2021 to those who missed out earlier which has a quota of 15 million.
- The bills on electricity and household water will be reduced for February and March 2021 for each household with electricity consumption up to 150 units a month will get the first 90 units for free and there will also be discounts for those using more than 150 units a month. Water charges for households and small businesses will be cut by 10% for February and March 2021, excluding state agencies and state enterprises. A budget of about nine billion Baht would be required to subsidize those reductions.
- The Ministry of Digital Economy and Society (“DES”) and the National Broadcasting and Telecommunications Commission will ask internet service providers to consider reducing household bills, boost internet speeds to support those working from home, and provide free downloads of the “Mor Chana” (“Doctors Win”) position-tracking app for three months.
- Soft loans will boost cash flow for eligible people and businesses at a cost to the government of 200 billion baht.
- The Government Savings Bank had agreed to lend 10,000-50,000 baht to each debtor, at interest rates of just 0.1-0.35% a month, the government insisted that the they had enough money to support the new Covid-related financial measures. About 470 billion baht remained from the Finance Ministry’s one-trillion-baht budget to cope with the impact of Covid-19, and about 130 billion baht from the government’s contingency fund could also be used for this purpose.
- Meanwhile, the Commerce Ministry will work with the Interior Ministry and the Industry Ministry to ensure enough personal protective equipment but face masks and hand sanitizers are always provided at high-risk areas, says the National Economic and Social Development Council (NESDC).
- Measures will also be in place to support business operators to use their factories as quarantine facilities for workers, particularly in the five maximum control provinces of Samut Sakhon, Chon Buri, Rayong, Chanthaburi and Trat.
- Thai tourists who have made hotel bookings for February and March 2021 under the Rao Tiew Duay Kan (We Travel Together) co-payment scheme will also be allowed to postpone their reservations until April 2021.
- The co-payment scheme, We Travel Together programme, the Moral Support campaign allowed 1.2 million health volunteers and officials of sub-district hospitals to travel with a 2,000-baht budget per tourist, and the measure to pay compensation to workers left unemployed due to Covid-19 pandamic.
- Reduction of employee contribution to the Social Security Fund
The cabinet approved the deduction in the Social Security Fund contribution rate for employee under Section 33 of the Social Security Act from February 2021 to March 2021. The reduced rate is equal to 0.5% of employee’s salaries. - Exemption of the annual fee for spa and massage business
The COVID-19 have had a negative effect on tourist and hotel industries, the cabinet also has passed its resolution to give an exemption of the annual 1,000 Baht fee for spa and the annual 500 Baht fee for massage business.
Legal Insight Vol. February 2021 of Bangkok Global Law
The PDF file can be downloaded via the link as set below.
Covid-19 and Thai Government Policy_Bangkok Global Law