Tell me about these attractions

[frogeye]

Someone told me that if you have been working here and paying tax's and social security for more than 8 years then you can receive a local pension...

is this true ?

[TerryLH]

Yes, you can get a pension, but NO, not for only working 8 years.

[Pib]

See para 22 of attached Thailand Social Security Benefits Brochure regarding Old Age Pension.

 

 

Thai Social Security Benefits.pdf

[AlQaholic]

20 hours ago, frogeye said:

Someone told me that if you have been working here and paying tax's and social security for more than 8 years then you can receive a local pension...

is this true ?

You must work minimum 180 months, which is 15 years. However, the salary that the pension is calculated from is capped at 15,000 Bath. Even if your salary was much more than that, the payout will be calculated at 20% of 15,000, plus an additional 1.5% for each additional year you worked after the base 180 months. So if your salary was for example 100,000 Baht, and you worked for 20 years, your pension will be 20% + 5*1.5% = 27.5%*15,000 = a staggering 4,125 Baht monthly.

[Media1]

LOL Iaughed just at the headline

[blackcab]

@AlQaholic So for a salary of 100,000 baht a month paid for 20 years, how long would it take to receive the same amount of pension as you paid in income tax?

 

Is the average life expectancy in Thailand that long?

[AlQaholic]

On 3/31/2018 at 1:43 PM, blackcab said:

@AlQaholic So for a salary of 100,000 baht a month paid for 20 years, how long would it take to receive the same amount of pension as you paid in income tax?

 

Is the average life expectancy in Thailand that long?

 

My thinking is; the Government probably reckons those that earn 100,000/m or more have arranged pension otherwise. The govt. provided pension is meant for low-income earners who wouldn't afford to arrange for another pension. As I said, the base salary used to calculate the payout is capped at 15,000 Baht.

[Pib]

On 3/31/2018 at 1:43 PM, blackcab said:

@AlQaholic So for a salary of 100,000 baht a month paid for 20 years, how long would it take to receive the same amount of pension as you paid in income tax?

 

Is the average life expectancy in Thailand that long?

You could do the math yourself from the info given in post #3.  

 

But my math from the info indicates 5% monthly deduction against the SS taxed earnings on the first Bt15K of monthly earnings (max monthly earnings taxed for SS) that would result in Bt750/month SS tax times 12 months is Bt9,000/year times 20 years equals Bt180K tax withheld over 20 years.

 

Contributing for 20 years means a SS pension of 20% of earnings.  20% of Bt15K (the only part that was taxed) is Bt3,000/month.  Divide Bt3K into Bt180K eqauls 60 as in 60 months/5 years.    

 

So, with only needing to live 5 years after retiring from a 20 year work career I think  a person has a pretty good chance in recouping all Thai SS taxes paid.   Pension received after 5 years of retirement is pure return on investment for the rest of your life which for a Thai is  around 75 years of age....see snapshot at bottom

 

Yes Bt3K/month is not a lot for a 20 year work life, but living longer enough after retiring to recover SS taxes paid is probably not an issue for the great majority since I expect the great majority of retirees in Thailand retiree (voluntarily or involuntary) from their SS tax paying job around 60....and with an average 15 years of life remaining after turning 60 the typical person will recover around 3 times of what they paid in SS tax.

 

 

 

 

[blackcab]

@Pib Thank you for taking the time to write that post. The only thing is that foreign workers also have to pay income tax, which is a considerably larger sum per month. It was income tax that I mentioned in my previous post.

[Pib]

Why even try to associate income tax with social security tax....two different types of taxes...used/meant for different things.

[robsamui]

I don't know if this thread is still active, but I'm in the same situation.

 

If you have been legally employed and have a Thai social security number (13 digits) then you'll be in the system. Go here to check (it's in Thai and English - select on the top line).
https://www.sso.go.th/wpr/ Use your social security number as your user name and choose your own password.

 

Once all sorted and registered, the left-hand icon of the symbols on the top line reads 'insured person'. Click on that and scroll down to the very bottom line - 'calculation of old age allowance'. There you find a detailed breakdown of all info, including your and your employer's contributions.

If you have less than 15 years contributions you can only take a lump sum, the choice of a monthly income doesn't apply.

 

Hope that helps (thanks to Kasper for putting me on to this!)

 

[ELLHNAS]

On 7/12/2018 at 5:30 PM, robsamui said:

I don't know if this thread is still active, but I'm in the same situation.

 

If you have been legally employed and have a Thai social security number (13 digits) then you'll be in the system. Go here to check (it's in Thai and English - select on the top line).
https://www.sso.go.th/wpr/ Use your social security number as your user name and choose your own password.

 

Once all sorted and registered, the left-hand icon of the symbols on the top line reads 'insured person'. Click on that and scroll down to the very bottom line - 'calculation of old age allowance'. There you find a detailed breakdown of all info, including your and your employer's contributions.

If you have less than 15 years contributions you can only take a lump sum, the choice of a monthly income doesn't apply.

 

Hope that helps (thanks to Kasper for putting me on to this!)

 

How can you find if you have a Thai social security number? Is it marked in the work permit or if not then where?

[robsamui]

Just now, ELLHNAS said:

How can you find if you have a Thai social security number? Is it marked in the work permit or if not then where?

Ask your employer - either he or the company accountant will be able to tell you.

 

[robsamui]

Just to reiterate - forget the monthly pension of a few thousand baht - if you you have a work permit (and a social security number), then you can claim a lump sum from the Department of Labor equivalent to approx 900 baht for every month worked.

 

It seems that you can then not get another work permit and work again - but you would have to check on this.

Edited September 27, 2018 by robsamui