Three key economic agencies have urged the Labour Ministry to review plans to extend Section 33 of the Social Security Act to additional categories of workers, citing concerns over the financial impact on workers, employers and the state.
The concerns were raised after the cabinet approved in principle a draft royal decree expanding mandatory coverage under Section 33 to workers who are currently exempt.
The proposed expansion would cover employees in crop cultivation, forestry and livestock businesses, as well as household workers, gardeners, drivers and street vendors.
The Labour Ministry has been asked to assess the broader economic and welfare impact of the measure before it is implemented.
The Finance Ministry warned that the expansion would create additional contribution costs for the government, employers and workers.
It urged the Labour Ministry to ensure registration and contribution systems are practical, efficient and appropriate for small employers and their workers.
The ministry also said the measure could create financial obligations for the state under the Fiscal Responsibility Act 2018 and called for a review of its costs, benefits and implications for long-term fiscal sustainability.
The Budget Bureau, meanwhile, pointed to high living costs, the slowing economy and an energy crisis linked to conflicts in the Middle East.
Many of the workers targeted by the measure have low or unstable incomes, while some are migrant workers, it said.
Mandatory contributions could raise costs for workers and small employers, potentially leading to job cuts, fewer working days and attempts to avoid formal employment, the bureau warned. Such effects could also weaken the grassroots economy.
If the Labour Ministry proceeds with the expansion, the Budget Bureau urged it to conduct a careful review to avoid creating future burdens for insured workers, employers and the state budget.
It also recommended considering voluntary participation for workers seeking social security protection and ensuring the long-term stability of the Social Security Fund.
The National Economic and Social Development Council urged the Social Security Office to develop efficient systems for employer registration and employment reporting, including simpler contribution calculations and links to salary data.
The draft decree would extend Section 33 protection to three groups of workers previously exempted, giving eligible workers access to benefits covering illness, cancer, maternity, disability, death, old age and unemployment. The expansion is expected to steadily increase the number of insured workers from 2026, reaching more than 1.05 million by 2030.