A new formula for the calculation of retirement pensions to ensure fairness among insurers involving Sections 33 and 39 of the Social Security Act was approved yesterday and will take effect on Jan 1.
Marasri Jairangsri, secretary-general of the Social Security Office (SSO), said the Social Security Board (SSB) has now approved the formula adjustment.
She said the revised calculation is expected to result in higher retirement benefits from the start of next year.
She welcomed this new formula, saying it would increase retirement pensions to insured people, especially those who fall under Section 39 and voluntarily continue making contributions to the fund after leaving their jobs.
Ms Marasri said the adjustment will provide better benefits for those who have received small pension payouts under the current system.
"Further details will be discussed by a working group to make sure the new method will bring more benefits to people and have less of an impact on a certain group of people, especially those under Section 33 who are employees paying insurance under the co-payment scheme by their employer and the government," she said.
She said a public hearing would be held within 90 days.
"About 800,000 insurers will receive benefits from the new formula. We would like to express our appreciation for all stakeholders who have taken part in pushing for this change since 2020," Ms Marasri said.
Montree Tirakothat, a representative from the employee side who is a member of the board, said the new method of calculation would make the social security system fairer.
Civil society organisations said the change was needed to reflect the higher cost of living.