The Social Security Board has agreed to halve both workers' and employers' monthly contributions to the Social Security Fund to 2.5%.

It is one of the stimulus measures aimed at easing the impact of the slowing economy on the average worker.

In a close 6-5 vote the board approved a proposal to cut their monthly 5% contributions to the fund to 2.5%.

Board members who disagreed with it wanted the proposed cut to be considered after the second or the third quarters of this year.

But those who voted in its favour argued that the measure, if delayed, would worsen the unemployment situation in the country.

Permanent secretary for labour Somchai Chumrat, who chairs the board, assured that the cut would not affect the workers' retirement fund as feared. However, he could not say whether the measure would or would not affect a fund for the elderly. The proposed reduction would be cushioned with a budget of 15 billion baht.

The SSF's investment returns last year stood at 20 billion baht, said a source.

The board will forward its resolution to the cabinet for approval.

All the 9.3 million SSF members across the country would also be given 5kg of rice each for one year, said Mr Somchai.

The SSF is in the process of calling a bid for the rice handout scheme to ensure transparency. The scheme will require an investment of about one billion baht, said the source.

Last week, the government agreed to grant a one-off 2,000-baht allowance to eight million employees under the SSF who are earning a salary of less than 15,000 baht.

The Social Security Office will also pay 151 million baht in compensation to families of SSF members killed or injured during the seven-day New Year holiday period.