The Cabinet on 30 March 2021 approved two draft bills, paving the way for the establishment of a national pension fund, as Thailand is becoming an ageing society.
The first draft bill seeks to set up the National Pension Fund Policy Committee, and the second concerns the National Pension Fund. They were proposed by the Ministry of Finance.
The National Pension Fund Policy Committee, to be chaired by the Prime Minister, is responsible for offering suggestions on policies and guidance to develop the pension system covering all retired persons. It will also supervise the coordination of relevant agencies for linking information in the public and private sectors concerning the pension system.
The National Pension Fund will be established as a juristic person, aimed at promoting savings among members and paying pensions for members, so that they have enough income for leading their life.
Employees aged 15 years and over and not more than 60 who are not members of the Provident Fund will be required to be members of the National Pension Fund.
Both employers and employees will have to contribute at least 3 percent of their salary in years one to three, 5 percent in years four to six, and 7 percent in years seven to nine. They will have to contribute at least 7-10 percent of the salary in the 10th year onwards.
It is estimated that, from 2023, the number of Thai people aged 60 years and over will increase by one million each year.
Source: The Government Public Relations Department