The Labour Ministry is considering a proposal to raise the retirement age from 60 to 65 and promote voluntary retirement, which it says are needed to bolster the financial capacity of the Social Security Office (SSF) as Thailand is on track to becoming a super-aged society.
Ministry spokesman, Phumphat Muanchan, said Labour Minister Phiphat Ratchakitprakarn wants the SSF to be sustainable financially because the fund is used not just to pay out seniors' pensions, but also medical cover for the general population.
Experts have warned the SSF could run out of money in about 30 years, due to the shrinking workforce and growing number of senior citizens.
As such, Mr Phumphat said, the minister has instructed officials to explore ways to ensure the fund's sustainability.
Among the proposals which are being considered is the plan to gradually raise the retirement age to 65 and the introduction of voluntary retirement, he said.
Furthermore, he said, the ministry is also considering raising the caps used to calculate the monthly contribution of SSF subscribers.
Under a new ministerial regulation that is undergoing a review, the monthly wage ceiling used in determining a subscriber's contribution will be raised from 15,000 baht to 17,500 baht by 2027. It would be raised again to 20,000 baht in 2030, and 23,000 baht in 2031.
Mr Phumphat said the government will also be asked to increase its contribution to SSF from 2.75% to 5%, while investment returns for the SSF will be adjusted to 5% annually to enhance the fund's sustainability.
The ministry spokesman also dismissed reports the proposed amendments to the Social Security Act would eliminate elections for members of the Social Security Board, who represent employers and employees.
Mr Phumphat said the SSF is funded by workers, employers, and the government, so any policy changes affecting the fund will involve input from all stakeholders.
The SSF is Thailand's largest public fund. Valued at 2.65 trillion baht, it provides financial security to 24 million members.
However, the SSF has faced scrutiny, particularly from the opposition People's Party, which has accused the Social Security Office (SSO) of mismanaging the fund.