All employees and wage earners of industrial and commercial companies with 1 or more staff members.

Prepared by Bangkok Life Assurance. I SUMMARY Social Security Eligibility Retirement Age Contributions All employees and wage earners of industrial and commercial companies with 1 or more staff members. 60M/F 2.75% from government and 5% each from employer and employee for Social Security, and 0.2% to 1.0% employer contribution to Workers Compensation. For unemployment insurance, 0.5% of salary from both employer and employee, plus 0.25% from the government. Retirement Disability Old Age Pension: 20% of the employee s average wage of the last 60 months. An additional 1.5% per additional year of contributions over 15 years, up to a maximum of 38%. Disability Pension: 50% of prior earnings payable for whole life. For work-related causes: Temporary disability: 60% of earnings for up to 52 weeks. Permanent partial disability: 60% of earnings for up to 10 years, or a lump sum. Permanent total disability: 60% of earnings for up to 15 years. Death A lump sum of 1.5 to 5 times last monthly earnings. If death occurred without suffering from injury or illness, a funeral grant of THB 40,000 is paid to the administrator of the funeral. For work-related death, a lump sum or 60% of earnings for up to 8 years. Medical Normal medical treatment, i.e. general practitioner and specialist care, hospital, inpatient care, etc. Employee Reference Manual 2015-2016 - 1 - Swiss Life Network

Private Benefit Plans Eligibility For retirement plans, all regular full-time employees are eligible after a minimum of 1 year of service. Retirement Age Contributions Retirement Disability Death 60M/F Contributions to the Provident Fund vary from 4% to 30% of salary (often split equally between employer and employee). Lump sum equal to the account balance in the Provident Fund. Lump sum equal to the account balance in the Provident Fund. Lump sum equal to the account balance in the Provident Fund. Accidental death and dismemberment is usually a lump sum of between 1 and 3 times annual earnings. Medical Vesting Normally applicable to salaried employees. Coverage extends to immediate family. Inand out-patient treatment, surgery, maternity, etc. No legal vesting regulations exist. The company-paid portion of the account balance is normally partially vested after 5 years, and fully vested after 10 years. Taxation Employer Contributions Social security: tax deductible subject to a maximum of THB 750 per month Private benefit plans: For retirement plans deductible up to 15% of salary, if various conditions are met. Other contributions / premiums are deductible. Employee Contributions Social security: tax deductible subject to a maximum of THB 750 per month Private benefit plans: Deductible up to a limit. Social security: Tax-free. Employee Reference Manual 2015-2016 - 2 - Swiss Life Network

II INTRODUCTION Country Statistics Population/ growth rate Age structure 0-14 years: 15-24 years: 25-54 years: 55-64 years: 65 years and over: GDP purchasing power parity Real growth rate Agriculture Industry Services Unemployment rate Inflation rate Annual gross salary* Labourer Professionals Management Legal minimum wage Exchange rate on February 27, 2015 Currency: Thai Baht 67,741,401 (July 2013 est.) / 0.35% (2014 est.) 17.6% 14.8% 44.5% 13.3% 9.8% (2013 est.) USD 386.25 billion (2014 est.) 2% (2014 est.) 1.4% 0.67% 2.3% (2014 est.) 0.8% (2014 est.) 1.9% (2014 est.) in 000, THB General: 222 Skilled: 367 Junior: 605 Senior: 997 Lower: 1,642 Upper: 2,940 Ranges from THB 300 per day and up (depending on the cost of living in various provinces) in 2015 1 THB = 0.0309 USD 1 THB = 0.0276 EUR *Source: Mercer s International Geographic Salary Differentials, Edition 2015 Legislation and Insurance Market Update in Brief No significant changes in legislation or the insurance market in 2014. Employee Reference Manual 2015-2016 - 3 - Swiss Life Network

III SOCIAL SECURITY Background Information As of 2002, employers with one or more employees on their payroll have been required to make contributions to the Social Security Fund and the Workmen s Compensation Fund. Prior to that regulation, contributions were only mandatory for employers with ten or more employees. The social security system does not cover government staff, Thais working abroad, students, servants, or employees in temporary work places such as stalls, however non-thais may be included. The social security system insures three categories of persons: Employees between the ages 15 and 60, people who lose their jobs as well as the self-insured. include retirement, disability, non-work related injury, non-work related illness, and maternity. Programmes for child welfare and old age commenced in 1998, when enacted as a Royal Decree. Wages and living standards differ widely between urban and rural areas. Minimum wages are set per region by the Ministry of Labour and Social Welfare. The maximum rate is paid out in the provinces of Bangkok, Nakhon Pathom, Nonthaburi, Pathum Thani, Phuket and Samut Prakan. The Labour Relations Act establishes provisions for severance pay, sick leave, paid vacation, statutory holidays and terms of employment. The Workmen s Compensation Fund provides limited benefits for occupational injury, death or disability. Eligibility All employees or wage-earners of industrial and commercial firms with 1 or more employees / wage-earners are eligible. Contributions Government: Employer: Employee: 2.75% of wages, with a maximum contribution of THB 412 per employee per month 5% of wages 5% of wages The maximum wage to be used for calculating contributions is THB 15,000, while the minimum is THB 1,650. Contributions towards Workmen s Compensation are borne by the employer, who contributes 0.2% to 1% of the payroll according to the industry risk and the past claims experiences, plus an annual government subsidy. The monthly ceiling for benefits and contributions is THB 20,000. Retirement Retirement Age Normal retirement: Early retirement: 55M/F 55M/F Employee Reference Manual 2015-2016 - 4 - Swiss Life Network

are payable to individuals who have paid contributions for at least 15 years, who have reached (at least) age 55 and who cease employment. The pension is equal to 20% of the employee s average wage of the last 60 months. An additional 1.5% per additional 12-month period of contributions over 15 years is awarded up to a maximum of 38%. Individuals who retire before age 55, or who have not paid contributions for at least 15 years, receive a lump sum payment at retirement. Disability To qualify for disability benefits, the insured must have paid contributions for no less than 90 days within the preceding 15 months. in case of disability are: Medical examination Medical treatment Medication and medical supplies Board and treatment in the place of treatment Ambulance or transportation for the disabled Physical, mental and occupational rehabilitation Other services as necessary. Compensation benefit due to loss of income is 50% of the salary for life averaged over the highest paid three months in the nine months preceding disability.. If hospitalised, a medical care allowance of THB 2,000 per month is granted to the insured, plus the reimbursement of expenses for prosthetics (maximum of THB 4,000). For rehabilitation in a hospital the maximum benefit amounts to THB 40,000. Death The insured person must have paid contributions for no less than 30 days during the 6-month period before death. Death benefits are not paid in the event of suicide. Employee Reference Manual 2015-2016 - 5 - Swiss Life Network

The death in service lump sum benefits are: 50% of the deceased s average monthly wage of the highest paid three months during the nine months preceding death, provided that contributions had been paid for a minimum of 36 months (maximum for ten years). If paid contributions exceed 10 years, benefits are five times the last salary. equal to the amount of the employee's own contributions if the deceased had less than 12 months contributions. If the cause of death of the insured person is not due to work-related injury or sickness, a benefit for funeral costs equal to THB 40,000 is paid to the administrator of the funeral. The workmen's compensation fund also provides benefits in the event of death from occupational accident or disease. This amounts to 60% of salary payable for eight years, subject to a minimum of THB 1,650 and a maximum THB 15,000 per month. The fund also pays a funeral grant of 100 times the statutory minimum daily wage. Sickness To qualify for sickness benefits, the insured must have paid contributions for no less than 90 days within the preceding 15 months. The insured is entitled to a compensation benefit due to loss of income at a rate of 50% of the salary for a period of maximum 90 days, not to exceed 180 days in one calendar year, except for chronic diseases in which case it shall not exceed 365 days. If hospitalised, a medical care allowance of THB 2,000 per month is granted to the insured plus the reimbursement of expenses for prosthetics. Medical/Health Contributions must have been paid for at least three of the 15 months preceding the injury or the disease. However, this minimum requirement does not apply for Workmen s Compensation. Employee Reference Manual 2015-2016 - 6 - Swiss Life Network

Medical benefits cover the basic needs, i.e. the hospitalisation in designated hospitals at ward level, plus the respective expenses. For in-patient and out-patient care, coverage cannot exceed prescribed limits. Medical services are provided through contracted health care providers consisting of public, university, military and private hospitals. The hospitals receive capitation payments from the government for the insured persons freely registered with them, and may organise their own network of other medical institutions to provide some of the services. The annual capitation rate is currently up to THB 1,000 per person. Extra costs for services are paid separately to the provider and no-user charges are in force. The capitation fees are paid monthly; 75% is paid in advance and the remainder is settled three months afterwards. The number of insured persons registered at a hospital during each month is defined as the average of the numbers at the beginning and the end of the month. The quality of care and utilisation rate at each contracted hospital is monitored. 30-Baht Health Scheme In 2001 the government launched the 30-Baht health scheme. Insured are all people not in any health scheme. They receive a card granting them access to government health services and private sector health services registered with the project. The insured must contribute a co-payment of THB 30 per incident. Work Injury Employees become eligible for the following benefits when they are injured, become ill or die due to working conditions. Temporary Disability: 60% of earnings, payable from the first day if the employee is incapacitated for more than 3 days. The benefit is payable for up to 52 weeks. Permanent Partial Disability: 60% of average monthly wage. Payable for up to 10 years according to degree of incapacity, or as a lump sum. Permanent Total Disability: 60% of latest earnings, payable for a period of up to 15 years. Death : Income of 60% of earnings according to number and type of survivors (max. THB 15,000 per month), payable for up to 8 years or as a lump sum. Eligible survivors are the spouse, parents and children under age 18 (or above if in education or disabled). The benefit is divided equally among survivors. Employee Reference Manual 2015-2016 - 7 - Swiss Life Network

Funeral Grant: 100 times the daily minimum wage. Medical Care: Necessary medical, surgical and hospital services are paid up to a maximum of THB 45,000 per incident. In addition, a discretionary additional sum of THB 50,000 for serious and prolonged incapacity can be paid, depending upon the assessment of the medical committee. according to temporary disability apply. Additional : A maximum of THB 24,000 per year is available for prosthetic appliances, related therapy and vocational rehabilitation training. Unemployment In 1990 unemployment insurance was announced as part of the Social Security Act, but it only came into effect on January 1, 2004. Employees receive benefits through the Labour Welfare Fund, which is governed by the social security office. Eligible are employees of companies with at least 10 employees who have contributed to the Labour Welfare Fund for at least six months within the past 15 months and who are not covered under a provident fund. Employees who are laid off due to reasons other than dishonesty, commitment of crimes, intentional causing of damage or violation of work regulations, will receive 50% of their salary for a period of not more than 180 days. Employees who resigned voluntarily receive 30% of their final pay for not longer than 90 days. The unemployment benefit is limited to a maximum of THB 250 per day. Contributions from both the employee and the employer are 0.5% of salary each, and from the government 0.25%. Other Severance Pay Labour law foresees that an employee who is dismissed without just cause after having worked for at least 120 days is entitled to severance pay varying between 1 month s wage (employment between 120 days and 1 year) and 10 months wage (employment over 10 years). An employee may be dismissed without severance pay if the reasons are wellfounded, e.g. negligence, dishonesty, imprisonment or being absent without a reason. Employee Reference Manual 2015-2016 - 8 - Swiss Life Network

Maternity Eligible are women who have paid contributions for a minimum of 210 days within the 15 months before the pregnancy. They receive benefits of 50% of earnings for a maximum of 90 days, plus child delivery payment of THB 13,000 plus the following medical benefits: Medical examination and statement of pregnancy Medical treatment Medication and medical supplies Child delivery Board and treatment in the place of treatment Recuperation and treatment of baby Ambulance and transportation for patient Other services as necessary. Child Allowance The insured is entitled to child allowance benefits for a child under the age of 6 and shall be paid for a maximum of 2 children at a time (eligibility does not apply to adopted children or to a child adopted by others). The monthly allowance per child amounts to THB 400. Dental Benefit Dental treatments such as fillings, scaling and the extraction of a tooth is paid up to THB 600 per annum, or up to THB 300 per treatment. The benefit is also paid for implants to an insured person who lost all the teeth through an accident, or to an insured person as from the age of 55. Taxation Employer and employee contributions to social security are tax deductible subject to a maximum of THB 750 per month for each. Social security benefits are not taxable. Other Information Reciprocal Social Security Agreements The Netherlands. Source: International Labour Organization Employee Reference Manual 2015-2016 - 9 - Swiss Life Network

IV PRIVATE BENEFIT PLANS Background Information Under the Provident Fund Act of 1987, an approved provident fund has significant tax advantages. In order to qualify for these advantages, the following requirements have to be met: The contribution plan should identify a fund committee and set the minimum levels of contribution The plan must be registered and managed by an approved fund manager The plan must be registered with the Ministry of Finance. Provident funds providing lump sum benefits upon retirement, death or disability are common. Group life and group medical plans are mostly provided by subsidiaries of foreign corporations or very large local corporations. Group life plans with accidental death and dismemberment riders and medical plans are commonly provided by foreign companies (as well as some local corporations). For companies with at least 10 employees that do not have a provident fund, an Employee Welfare Fund will be established to compensate employees who resign, are laid off, or die in service. Employers and employees will be required to contribute to this fund. The benefits at retirement are equal to the total of employer and employee contributions, plus interest. Eligibility For retirement plans, all regular full-time permanent employees are eligible after a minimum of one year of service. Contributions Employees normally contribute from 2% to maximum of the lesser THB 200,000 or 15% of pensionable salary. Employers must match the employee contributions and might pay higher contributions for employees with long service. Retirement Retirement Age Normal retirement: 60M/F Provident funds are usually set up as follows: Pensionable Salary: 12 times the basic monthly salary. Pensionable Service: Complete years and months from entry into plan until retirement. Retirement : The retirement benefit is a lump sum representing the account balance made up from employer and employee contributions along with credited investment earnings. It is not common to provide retirement pensions. Disability : The account balance is paid upon permanent total disability. Death : The account balance is paid upon death. Employee Reference Manual 2015-2016 - 10 - Swiss Life Network

Vesting No legal vesting regulations exist. The company-paid portion of the account balance is normally partially vested after 5 years, and fully vested after 10 years. Death Typical life and accidental death and dismemberment coverage is between 1/2 and 3 times annual salary on a noncontributory basis. If a contributory basis is applied, it is usually in the form of a flat sum insured for all employees. Disability and Sickness Most group life insurance plans include a permanent disability rider. The Labour Law permits all employees to take sick leave until recovered. During sick leave, they are entitled to receive full salary for a maximum of 30 days per year. Medical/Health Most plans cover all salaried employees. Plans are often non-contributory. When coverage is provided for dependants, employees often pay part of the premium for this coverage. An average plan provides the following benefits: Hospital Daily room and board (R&B) Private THB 2,300 - THB 4,000 Semi-private THB 1,500 - THB 1,500 Ward THB 500 - THB 1,000 Maximum days, per illness 31 Hospital services 25-30 x R&B Out-patient treatment (emergency) THB 10,000 Surgery and anaesthesia benefits Maximum benefit for surgery 15-50 x (R&B) Average charge for appendectomy THB 5,000 Doctor s Visits In-hospital THB 1,00 1,500 Maximum number of visits per illness 31 Out-of-hospital (some insurance companies THB 500 cover this, but most exclude it) Maternity Normal delivery THB 30,000 - THB 60,000 Caesarean 200% of normal delivery Abortion 50% of normal delivery Employee Reference Manual 2015-2016 - 11 - Swiss Life Network

Other Apart from common fringe benefits such as company cars, no other benefits are available. Taxation General A retirement plan is classified as a registered provident fund scheme as defined by the Provident Fund Act of 1987, provided the following conditions are met: Written rules governing the plan must be approved by the Director General of the Revenue Department of the Ministry of Finance. Employees must contribute at least 2% of annual base salary to the fund. The employer contributions must at least match the employee contributions and may not exceed 15% of the annual base salary of the employee. The scheme must be overseen by a fund committee and led by an approved fund manager. Contributions Employer contributions to a registered provident fund are tax-deductible up to 15% of annual base salary of the employee and are not considered taxable income for the employee. Any other contributions, premiums and benefits paid by the employer are fully tax-deductible. Employee contributions to a registered provident fund are tax-deductible up to THB 300,000 per annum. Employee contributions to group life and group medical plans are not tax-deductible. Lump sum retirement benefits from a registered provident fund attributable to the employee contributions are taxfree. The portion of benefits attributable to employer contributions and investment earnings is not taxable up to a certain limit which depends on the employee s salary and period of service. 50% of any benefit in excess of this will be taxed as income. Other termination benefits are tax-deductible for the employer and tax-free for the employee up to a certain limit, plus 50% of the balance. Death, disability, medical and work injury benefits are not taxable. Double Taxation Agreements Armenia, Australia, Austria, Bahrain, Bangladesh, Belarus, Belgium, Bulgaria, Canada, Chile, China, Chinese Taipei, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Hong Kong, Hungary, India, Indonesia, Israel, Italy, Japan, Korea (Republic), Kuwait, Laos, Luxembourg, Malaysia, Mauritius, Myanmar, Nepal, the Netherlands, New Zealand, Norway, Oman, Pakistan, the Philippines, Poland, Romania, Russia, the Seychelles, Singapore, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Turkey, Ukraine, the United Arab Emirates, the United Kingdom, the United States of America, Uzbekistan and Vietnam. Source: Thailand Revenue department Employee Reference Manual 2015-2016 - 12 - Swiss Life Network

Other Information Funding Methods Registered provident funds must be managed by an outside finance and security company, banks or life insurance companies. Fund assets may not be deposited or invested in the sponsoring company, and not less than 20% of the assets must be invested in treasury bills or government bonds. The remainder may be invested according to a schedule of additional investment restrictions. Group life with accidental death and dismemberment and medical as riders are only offered by life insurance companies, whereas accidental death and dismemberment and medical can also be offered by non-life insurance companies. Employee Reference Manual 2015-2016 - 13 - Swiss Life Network