Population Policy

The Fourth National Economic and Social Development Plan
 (1977-1981). Part III, Chapter 7, p.275.

Date:     1977-1981

Source:     Office of the Prime Minister, National Economic and Social Development Board, Bangkok, Thailand

Subject:     employment policy, compensation, accidents, workers

5.1.2   Workers Compensation Fund

During the Third Plan period, the number of workers receiving dangerous accidents while working has gradually increased from 500 cases in 1971 to more than 5,000 cases in 1975. The total amount of compensation funds paid out to these unfortunate workers has increased to 25 million baht in 1975. This compensation fund arrangement failed to reduce the number of accidents during work since it did not touch at the root of the problem. Moreover, it was the cause of various conflicts and judicial processes between the employers and the Government who had to force the former to pay compensation.

Due to these reasons, the Government decided to set up a Workers' Compensation Fund within the Labour Department in 1974. Employers are required to contribute to this fund to provide accident insurance for their employees. The Government gives supplementary subsidy and bears the whole administrative cost of this fund. This new arrangement solved some problems concerning the certainty and rapidity in extending compensation and in forging a better relationship between employers and employees. However, it still has a limited coverage extending only to companies with more than 20 employees each in the Bangkok region and five other provinces surrounding Bangkok. Most of the workers are as yet left out of this system which still has cope to with the following major problems.-

1. Some employees do not correctly understand this system and think that they are unfairly treated by having to contribute to this fund on their own without any Government subsidy. In fact, the Government bears all administrative cost of this fund.
   
   

2. There is a shortage of operational officers.
   
   

3. The prevention of accidents has not received adequate attention in this system.
   
   

4. This fund is saddled with a large reserve which is left over after all compensation has already been paid out.