The Cabinet has agreed to set up a national pension fund to support an ageing Thai population that will add about one million new retirees annually starting in 2023.
Government spokesperson Rachada Dhnadirek said the fund would require all formal employees who are not members of the provident funds, including employees of government agencies and state enterprises, to save money.
She said under the new pension program, both employers and employees will contribute, with minimum inputs ranging from 3%-10% of salaries depending on employment tenure, and the program will be mandatory for all employees who aren’t participating in other pension plans.
Those affected would be aged 15-60 years earning up to 60,000 baht/month. However, if the employee earns less than 10,000 baht/month, only the employer would have to contribute. Meanwhile, employees can opt to commit more to the fund, up to 30% of their salary. (NNT)