The Social Security Office (SSO) of Thailand is undergoing significant reforms to its pension calculation system, aiming to enhance fairness and sustainability for retirees. The new formula, known as the Career-Average Revalued Earnings (CARE), will replace the existing method, which has been criticized for not accurately reflecting the economic realities faced by pensioners.
According to Mrs. Marasri Jairangsri, the Secretary-General of the SSO, the current pension calculation method averages the contributions made during the last 60 months of employment. This practice has led to inequities, particularly for long-term contributors whose salaries may have decreased in their final years of work. As a result, the pensions they receive do not correspond to their lifetime contributions or the rising cost of living.
“The existing formula does not consider the economic conditions that affect retirees,” Mrs. Jairangsri stated, emphasizing the need for a revised approach that aligns with current economic realities. The SSO aims to ensure that pensions provide adequate financial security for retirees, reflecting the contributions made over their entire careers rather than just the last few years.
To facilitate these changes, the SSO has established a subcommittee tasked with studying and revising the pension calculation formula. This committee is chaired by Dr. Anusorn Thammajai, a financial advisor to the SSO, and includes representatives from various sectors, including employers, employees, and government agencies.
The committee has already convened twice, on April 10 and May 8, 2025, to discuss two key issues: determining an index for adjusting past wages to current values and devising a method for calculating average wages for pension purposes. The goal is to ensure fairness for all pensioners, regardless of their employment history.
Dr. Thammajai pointed out that the SSO is collaborating with the International Labour Organization (ILO) to develop an efficient pension calculation formula that is both fair and sustainable. “We are committed to making the pension system more equitable,” he said, noting that the adjustments are crucial as Thailand transitions into an aging society.
In light of these reforms, the SSO is also seeking public input. Plans are underway to hold nationwide consultations across four regions, allowing contributors to voice their opinions and concerns regarding the pension adjustments. This feedback will be compiled and presented to the SSO board for further consideration.
“We are working diligently to ensure that our pension system meets the needs of all contributors,” Mrs. Jairangsri added. “The SSO is not taking this matter lightly and is committed to creating a fair and sustainable pension system.”
As part of its reform efforts, the SSO is also focusing on improving its management and public relations strategies to instill confidence in the pension adjustments. “We want to ensure that everyone understands the changes and how they will benefit from them,” Mrs. Jairangsri emphasized.
In the broader context of labor welfare, the SSO is also tackling issues related to unpaid wages for workers involved in various construction projects. Recent reports indicate that over 500 workers have not received a total of 9.5 million baht for their contributions to the construction of the new Office of the National Anti-Corruption Commission (NACC).
Mr. Nattachai Boonchai-in, a representative for the affected workers, has been advocating for their rights, highlighting the financial distress faced by these laborers due to unpaid wages. “Many of these workers have had to mortgage their belongings just to make ends meet,” he stated, urging the SSO and relevant authorities to expedite the payment process.
In response to these concerns, the SSO has pledged to coordinate with relevant parties, including the contractors and government agencies, to resolve the issue promptly. “Our priority is to ensure that all workers receive their rightful wages without further delay,” Mrs. Jairangsri assured.
Furthermore, the SSO is also addressing the growing issue of workplace safety, with the Ministry of Labor aiming to reduce workplace fatalities to no more than three per 100,000 workers by 2030. This initiative was highlighted during the National Safety Day event, where Minister of Labor Mr. Pipat Ratchakitprakarn emphasized the importance of creating a safe working environment for all employees.
“Safety is not just a legal requirement; it’s a fundamental right for every worker in Thailand,” Mr. Pipat stated. He called for cooperation from all sectors to enhance workplace safety standards and reduce the risk of accidents.
As the country grapples with these pressing issues, the SSO’s reforms and its commitment to improving the welfare of workers and retirees are crucial steps towards fostering a more equitable and sustainable society. The ongoing discussions and public consultations surrounding the pension reforms signify a proactive approach to addressing the needs of Thailand’s aging population and labor force.
In conclusion, the SSO’s efforts to revise the pension calculation formula and address labor issues reflect a broader commitment to social welfare and economic stability in Thailand. With these initiatives, the SSO aims to create a more just and sustainable future for all contributors and retirees.
