Thai minister pitches pension perk: Varawut’s push for a raise in elderly stipend draws attention

Varawut Silpa-Archa, the Minister for Social Development and Human Security, voiced his backing for an increment in the monthly elderly stipend to 3,000 or 5,000 baht during a briefing yesterday, January 1 but stressed the hike’s financial feasibility for the country.

The minister’s comments were a direct response to a legislative proposal, submitted by several civic organisations on December 21, calling for an increase in the elderly’s monthly living stipend from the existing 600 baht to 3,000 baht. A staggering 43,826 individuals had signed the bill, which Deputy House Speaker Padipat Santipada received. The latter assured to expedite the bill to the House of Representatives for prompt deliberation.

Nimit Tienudom, an activist representing the civic groups, highlighted that similar drafts had been tabled thrice over the past ten years. Yet, only a universal pension system saw the light of day. He emphasised that the current economic downturn had underscored the importance of income security during retirement.

Nitirat Subsomboon, the director of the We Fair Network, drew attention to the allocation of 90 billion baht for the elderly allowance, which equates to an average of 600 baht per month. Comparatively, the pensions for civil servants cost 300 billion baht, averaging 30,000 baht per month.

In response, Varawut acknowledged that Thailand is already grappling with an ageing population, with the elderly expected to comprise over 20% of the population soon. This demographic shift is bound to impact the country’s revenues.

Despite the looming demographic challenge, he agreed to a hike in the elderly allowance. He further pledged that his ministry would strive to ensure a comprehensive retirement package for all individuals aged 60 and above. He also noted that the monthly allowance for people with disabilities and newborn babies merits consideration. Varawut added Increase must be affordable, reported Bangkok Post.

In a recent online forum, the Thailand Consumers Council (TCC) voiced a call to the new government the reconsider a policy that restricts certain elderly individuals from obtaining monthly grants, advocating instead for the reinstatement and enhancement of the universal pension scheme to pay 3,000 baht each month. To read more click HERE.