The government has been using the Social Security Fund (SSF) system as one of the measures to alleviate financial burden for both the employers and employees due to the COVID-19 pandemic, with the latest reduction of the contribution rates to the SSF ending in July 2022, as per our previous article [link].
With the intention to help both employers and employees cope with the economic stagnation due to the rising cost of living following the pandemic, on 20 September 2022, the Cabinet approved in principle the new draft regulation to reduce monthly contribution rates of the employers and the employees to the SSF from 5% to 3% of the employee's wages. The reduced rates will be applicable for three months from 1 October 2022 to 31 December 2022. From 1 January 2023, the rates will revert to the original rate of 5%.
The draft regulation is pending legal formalities but is expected to be announced soon.
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