Payee contributions still seen as ‘low’

>>The Social Security Fund comprises three welfare schemes: medical welfare covering illnesses, disabilities and death; child welfare and pensions; and unemployment.

Recipients of pension payouts must be at least 55 and no longer insured under the Social Security Act.

Those who have contributed to the fund for 15 years will get a monthly payment equal to 20% of their average wage for the last 60 months before retirement.

For those who have contributed to the fund for more than 15 years, they will get an extra of 1.5% per each additional year.

Currently employees pay 3% of their monthly salary, capped at 15,000 baht, to the scheme, and the amount is matched by employers.

The combined contribution of 6% to the scheme is considered low when compared with the recommended 13%. It is recommended that retirees should receive no less than half of their base salary.

Calculation of pension benefits

Number of years of contribution/ pension rate/ monthly payment (baht):

15 years/20%/3,000 20 years/27.5%/4,125 25 years/35.5%/5,250 30 years/42.5%/ 6,375 35 years/50%/7,500