18-9-2023 (BANGKOK) Thailand’s growing elderly population has sparked a significant conversation about extending the retirement age beyond 55 to address the challenges posed by an “aged society” and the ongoing labor shortage in the country, according to the Federation of Thai Industries (FTI).
Recognizing the need for a comprehensive plan, the Labour Ministry has expressed interest in establishing a new retirement age and is seeking input and data from the business sector. In response, the FTI is compiling a database that includes information on the number of elderly individuals in Thailand, including senior workers. This data will be shared with the ministry to assist in the development of a care plan that caters to their needs.
Suchart Chantaranakaracha, Vice-Chairman of the FTI, emphasized the collaborative efforts, stating, “We have discussed with the Labour Ministry a plan that is suitable for Thai society. The authorities are seeking assistance from the FTI due to its comprehensive employment information across various industries and age groups.”
Thailand officially transitioned into an aged society last year, as the population of individuals aged 60 and above exceeded 20% of the total population of 66 million, as reported by the Thai Health Promotion Foundation. This demographic shift has implications for the sustainability of the social security system in the country.
The Social Security Office, operating under the purview of the Labour Ministry, currently sets the retirement age for its Social Security Fund at 55. However, this has resulted in reduced contributions to the fund while the need for disbursements continues to rise, according to media reports. Under the current system, employers, employees, and the government make monthly contributions to the fund until employees reach retirement age. The Social Security Fund currently boasts approximately 12-13 million subscribers.
Within the business sector, retirement age policies vary among companies, with many setting the limit at 55. The FTI believes that raising the retirement age would be beneficial as it would allow elderly individuals to continue working in roles that align with their capabilities, thereby enabling companies to leverage their skills and experience effectively.
Mr. Suchart stressed the importance of seriously considering the proposal to raise the retirement age, given Thailand’s declining birth rates and the persistent labor shortage.
