Ministry of Labor in talks with industry
Publication date: September 18, 2023 05:08
Elderly people wait for COVID-19 shots at a department store in Bangkok. Thailand is an aging society, and the Ministry of Labor is considering raising the retirement age.Chanat Katanu
According to the Federation of Thai Industries (FTI), Thailand will raise the retirement age beyond 55 to accommodate an “aging society” and address the country’s continuing labor shortage due to its growing elderly population. There are serious discussions going on about this.
The Ministry of Labor is interested in setting a new retirement age and particularly needs further input from the business sector.
FTI is creating a database on the number of elderly people in Thailand, including older workers, and is sending it to the ministry for planning to provide better care.
FTI vice-chairman Suchart Chantaranakaracha said: “We have consulted with the Ministry of Labor on a plan that is suitable for Thai society.”
“Authorities want to help FTI because it has employment information for workers of all ages in different industries.”
According to the Thailand Health Promotion Foundation, Thailand became an aging society last year, with more than 20% of its population of 66 million people aged 60 or older.
According to media reports, the Department of Labor’s Social Security Administration has set the retirement age for the Social Security Fund at 55, resulting in the fund receiving fewer payments while requiring more payments.
The government, employers, and employees pay monthly contributions to the fund until the employee retires.
Between 12 and 13 million people are members of the Social Security Fund.
In the business sector, Suchart said companies have different policies on whether to raise the retirement age.
Retirement ages vary by company, but many companies set the upper limit at 55.
He said FTI believes raising the retirement age is a good idea because it allows older people to continue working and allows companies to perform age-appropriate work.
“Raising the retirement age is a proposal by the ministry, but it needs to be seriously considered as Thailand is facing a declining birth rate and labor shortage,” Suchart said.
