As part of the measures to help ease the impact of the rise in fuel prices, the Cabinet, on 29 March 2022, approved, in principle, the reduction of the contribution rate to the Social Security Fund (SSF).
Previously, the monthly contribution rates of employers and employees to the SSF were reduced to 2.5% to alleviate the burden for both employers and employees due to the pandemic, as per our previous article. The rate then went back to the original rate of 5% on 1 December 2021.
This new measure, once the regulations are issued, will reduce the monthly contribution rates of employers and employees from 5% to 1% of wage applicable for three months starting from May until July 2022, to help reduce the cost of living for employees and costs for employers through the SSF system.
The relevant government agencies have been tasked to prepare for the issuance of required regulations to implement the above measure as soon as possible. Thus, it is still pending formalities. We will keep you posted on further developments on this matter.