ELDERLY SET TO RECEIVE RISE IN PENSION PAYMENTS

>> The Social Security Office (SSO) is considering restructuring the contribution system of Social Security Fund (SSF) members in a bid to improve old-age pension payments.

Speaking after a seminar, SSO secretarygeneral Suradej Walee-ittikul said the office may need to make adjustments to contributions SSF members have made to the fund to fall in line with the current economic situation.

The restructure would affect how contributions are calculated, he said.

The seminar was attended by employers, employees, companies, academics, experts and relevant authorities.

Employers, employees and the government are required to make contributions to the SSF at different portions.

Now, both employers and employees are mandated by law to make contributions to the SSF at 5% of their salaries with a base salary of between 1,650 baht with a cap of 15,000 baht.

The government contribution is 2.75% of salary with a maximum rate of just above 400 baht.

Under the plan proposed by the SSO, a base salary would be increased from 1,650 baht (or contribution of 8.25 baht per month) to 3,600 baht (a contribution of 180 baht per month) and 4,500 baht (a contribution of 225 baht per month).

The base salary ceiling would be 20,000 baht per month.

The adjustments on minimum base salary and maximum base salary will affect how contributions are calculated.

Mr Suradej said elderly members will reap the benefits of the adjustments as employers and employees are required to increase their contributions to the fund plus interest the fund will get from investments each year.

Mr Suradej urged employers and employees to make comments on the proposed plan.

Kowit Sajjawiset, an expert on social security funds, said old-age pension payments of 3,000 to 4,000 baht per month are insufficient to cover the high cost of living.

Restructuring of contributions would help increase the amount, he added.

Poj Aramwattananon, who represents employers on the SSO’s board, said restructuring would affect employers but it would enhance the quality of members’ lives.

Manit Phromkareekul, who represents employees on the SSO’s board, said he supports the idea and urged the SSO to restructure contributions every five years.