Social Security Fund to Enhance Pension and Severance Pay
Revised Calculation Methods Aim for Fairness and Increased Subscription
The Social Security Board plans to change the formula used to calculate pensions and severance pay, benefiting social security subscribers.
This revision targets fairness and aims to encourage more individuals to subscribe under Section 39 of the social security law.
Section 39 is a voluntary scheme for those continuing contributions after leaving private-sector jobs.
To qualify, individuals must have been insured under Section 33, contributed for at least 12 months, and been unemployed for no more than six months.
Board member Sustarum Thammaboosadee announced a meeting on December 11 to finalize the new benefits, including a new pension formula and expanded unemployment insurance coverage.
The revised pension calculation will consider all years worked as a company employee, unlike the current method based on the last 60 months of average monthly income.
Additionally, severance pay will increase from 50% of 180 days' average daily income to 60% of 270 days.
Despite the financial implications, with an annual cost of one billion baht, the Social Security Fund remains robust, bringing in 200 billion baht annually.
This change is expected to attract more subscribers to Section 39, as the revised calculations promise greater financial returns.
This revision targets fairness and aims to encourage more individuals to subscribe under Section 39 of the social security law.
Section 39 is a voluntary scheme for those continuing contributions after leaving private-sector jobs.
To qualify, individuals must have been insured under Section 33, contributed for at least 12 months, and been unemployed for no more than six months.
Board member Sustarum Thammaboosadee announced a meeting on December 11 to finalize the new benefits, including a new pension formula and expanded unemployment insurance coverage.
The revised pension calculation will consider all years worked as a company employee, unlike the current method based on the last 60 months of average monthly income.
Additionally, severance pay will increase from 50% of 180 days' average daily income to 60% of 270 days.
Despite the financial implications, with an annual cost of one billion baht, the Social Security Fund remains robust, bringing in 200 billion baht annually.
This change is expected to attract more subscribers to Section 39, as the revised calculations promise greater financial returns.
