Thailand considers raising pension age to 65, SSO clarifies
The Social Security Office (SSO) has clarified that the proposed increase in the retirement age for pension eligibility from 55 to 65 is a suggestion from the International Labour Organisation (ILO) and is not yet implemented in Thailand.
SSO Secretary General Marasri Jairangsee indicated that this idea, initially presented by the ILO, has been under consideration by the SSO since 2017. She noted that implementing such a change would involve complex legal processes, and no amendments to the law have been proposed thus far.
The statement followed comments from Labour Ministry spokesperson Phumphat Muanchan, who outlined five primary strategies to ensure the sustainability of the Social Security Fund (SSF).
Among these is the proposal to gradually raise the pension eligibility age from 55 to 65, while allowing for voluntary retirement based on occupational groups, income levels, and regional differences.
Current stipulations under the Social Security Act 1990 require insured individuals to meet three conditions to claim an old-age pension: being at least 55 years old, no longer insured under Section 33 or Section 39, and having contributed to the fund for at least 15 years, either continuously or intermittently.
Marasri clarified that individuals meeting these criteria at 55 can retire and access their pension benefits. She also noted that the proposal to increase the pension eligibility age is distinct from another amendment under review, which seeks to extend the maximum age for new Section 33 enrollees from 60 to 65 years, aligning with Thailand’s ageing workforce.
In addition to potential changes in pension eligibility, the Labour Ministry is considering gradually increasing the wage ceiling for social security contributions from 15,000 baht to 23,000 baht by 2031 and raising government contributions from 2.75% to 5%.
The investment return for the SSF is set to be adjusted to 5% annually to maintain its long-term stability, reported Bangkok Post.
The SSF, valued at 2.65 trillion baht, is Thailand’s largest public fund, serving 24 million members. Concerns regarding the fund’s sustainability over the next three decades have prompted discussions on reform. The opposition People’s Party recently accused the SSO of fund mismanagement.
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