Ministry of Labour plans to raise the retirement age with more workers opting out of the economy

[webfact]

Minister of Labour Phiphat Ratchakitprakarn (centre) has been in talks with the Federation of Thai Industries (FTI) and Vice Chairman Mr Suchart Chantaranakaracha (Inset left) about research on employment patterns as the ministry plans to raise the retirement age from the current level of 55 years.

Thailand is destined to lose 15.6% of its active workforce in the next 17 years up to 2040 while the ratio of workers to retired seniors in the same period will halve from 3.6 to 1.8. The pandemic has led to more workers taking retirement at 55 years of age due to fears of economic insecurity.

The new Thai government is preparing to raise the retirement age in response to the country’s declining workforce which is gradually becoming the dominant factor in the economy’s inability to grow at the same speed as other Southeast Asian economies.

 

The country’s social security system needs to be reformed to cope with increased demand to pay for pensions as more workers are opting for early retirement rather than continuing to work in the employment market. Many may eventually drift back into the country’s informal economy which accounts for 50% of GDP.

Thailand’s Ministry of Labour is looking at increasing the retirement age in the Kingdom, which is currently 55 years of age.

 

by Joseph O' Connor

 

Full story: Thai Examiner 2023-09-30

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

Get our Daily Newsletter - Click HERE to subscribe

[topt]

From the link 

Quote

Many of these workers are expected to drift into informal employment positions although it is against the law and they run the risk of losing their pension benefits.

This is referring to those who have taken "early retirement" at 55 which is stated as the retirement age....

So legally are they forbidden to work again even if they want to at risk of losing whatever they are due?

[newnative]

     My Thai sister-in-law is required to retire in November from her bank job--she turns 60.  Ditto for her husband when he reaches 60 next year.  She looks like she's about 40 and, obviously, could work until at least 65 or longer if she wanted to and was allowed to.   It would be good if Thai workers in jobs like hers had the option to work longer, if they chose to. 

    She will get a lump sum payment from the bank for her retirement--which she will have to make last for likely the next 20 years or more.   I doubt I could budget that carefully, and I wouldn't want to be in the position of having to try to do it.  I thank my lucky stars for my traditional pension and social security, both with COLAs.

 

 

 

 

 

[retarius]

I retired at around this age. Best move I ever made. 

[Jelli]

Thai teachers should be retired after 20 years or 50 yo. Absolutely no part time work after 45 unless it's substituting less than 16 hrs week for no more than 12 weeks in any year.

 

Many Thai teachers are dire but the oldies are just a waste of students time.

 

Foreign teachers without license 50 and with license at 65. Foreign teachers should not be allowed to start work in K12 after 50.

[Muhendis]

3 hours ago, topt said:

From the link 

This is referring to those who have taken "early retirement" at 55 which is stated as the retirement age....

So legally are they forbidden to work again even if they want to at risk of losing whatever they are due?

I think you're missing the all important word "informally" which I take to mean being paid cash in hand and undeclared income.

Formal working is fine regardless of age because the government gets their tax.

[topt]

7 minutes ago, Muhendis said:

I think you're missing the all important word "informally" which I take to mean being paid cash in hand and undeclared income.

Understand that but if caught they actually lose all future pension benefits - is this both state and private do you know? 

 

[dinsdale]

3 hours ago, Jelli said:

Thai teachers should be retired after 20 years or 50 yo. Absolutely no part time work after 45 unless it's substituting less than 16 hrs week for no more than 12 weeks in any year.

 

Many Thai teachers are dire but the oldies are just a waste of students time.

 

Foreign teachers without license 50 and with license at 65. Foreign teachers should not be allowed to start work in K12 after 50.

Fantastic statement. Would you like to back it up as to why you think this is so or is this just what you think? "Thai teachers should be retired after 20 years", so how old would they be then do you think.

Your entire post is nonsence.

[dinsdale]

4 hours ago, newnative said:

     My Thai sister-in-law is required to retire in November from her bank job--she turns 60.  Ditto for her husband when he reaches 60 next year.  She looks like she's about 40 and, obviously, could work until at least 65 or longer if she wanted to and was allowed to.   It would be good if Thai workers in jobs like hers had the option to work longer, if they chose to. 

    She will get a lump sum payment from the bank for her retirement--which she will have to make last for likely the next 20 years or more.   I doubt I could budget that carefully, and I wouldn't want to be in the position of having to try to do it.  I thank my lucky stars for my traditional pension and social security, both with COLAs.

 

 

 

 

 

Forced retirement is insane in a country that has no real social security. Off to the poverty bin for you unless you have been in a postion to amass a fortune through corruption or you are born into wealth. No difference I guess. I've said it before and I'll say it again. "Big shiny buildings yes. 3rd world yes." As it stands I believe a 60 yr old gets Bt600 a month unless they have been a govt employee then it's still very low. The people of Thailand cannot be cared for by the 'government'  because pockets must be filled 1st.

[kickstart]

2 hours ago, topt said:

Understand that but if caught they actually lose all future pension benefits - is this both state and private do you know? 

 

I would say the chance of that would be remote never heard of anyone working on a cash in hand job, getting caught and having they pensions  stoped .

Who would go round all the motorcycle and sidecars/hand carts selling meat balls hotdogs etc. etc. checking to if they have a pension.

A friend of mine has a farm rearing cattle and growing trees, now on a company pension, been doing now few a good few years, never had a problem.

[ikke1959]

Maybe Thailand could start to set up  a real good social security system.  First let everybody register where they live and what job they are doing and let them fill in a tax form.  The government can see who is earning what in which job, and how assets they have and can collect tax according.  Now they have no clue at all as we have seen already in several cases last weeks. Than you can chance things but how can you change what you don't know

[topt]

2 hours ago, kickstart said:

I would say the chance of that would be remote never heard of anyone working on a cash in hand job, getting caught and having they pensions  stoped .

Who would go round all the motorcycle and sidecars/hand carts selling meat balls hotdogs etc. etc. checking to if they have a pension.

A friend of mine has a farm rearing cattle and growing trees, now on a company pension, been doing now few a good few years, never had a problem.

Thanks for that observation. That's why I was asking. Just doesn't sound feasible to me but perhaps that's something 'lost in translation' in the original report. 

[still kicking]

7 hours ago, retarius said:

I retired at around this age. Best move I ever made. 

Move to the west

[Jelli]

8 hours ago, dinsdale said:

Fantastic statement. Would you like to back it up as to why you think this is so or is this just what you think? "Thai teachers should be retired after 20 years", so how old would they be then do you think.

Your entire post is nonsence.

It's widely understood what a burnout job teaching is. Teachers in US often last under ten years.

 

From my vantage point, Thai teachers being overworked and underpaid just lose it. It's really tragic to especially see young teachers here give up but the older teachers just shut down as they stopped learning the day the left university. It's not about giving but taking. So...twenty years on. From my experience, I don't see them as engaging or effective. Would be extremely rare to be interested in continued learning, growth. Rather, it's just minimal effort and a lot of laziness due to burnout, salary. They also tend to inject themselves if possible into the bureaucracy becoming even less valuable as a teacher. *Thai teaching* is generally just yapping at the students from a chair.. Students just tossed paper worksheets.

 

* it's nonsense btw 

Edited September 30, 2023 by Jelli

[daveAustin]

Bogus government endearing itself to the populace I see. 

[hotchilli]

On 9/30/2023 at 4:45 AM, webfact said:

Thailand’s Ministry of Labour is looking at increasing the retirement age in the Kingdom, which is currently 55 years of age

Phipats go a real job this time.. not sure he's up to solving this one.

[dinsdale]

10 hours ago, Jelli said:

It's widely understood what a burnout job teaching is. Teachers in US often last under ten years.

 

From my vantage point, Thai teachers being overworked and underpaid just lose it. It's really tragic to especially see young teachers here give up but the older teachers just shut down as they stopped learning the day the left university. It's not about giving but taking. So...twenty years on. From my experience, I don't see them as engaging or effective. Would be extremely rare to be interested in continued learning, growth. Rather, it's just minimal effort and a lot of laziness due to burnout, salary. They also tend to inject themselves if possible into the bureaucracy becoming even less valuable as a teacher. *Thai teaching* is generally just yapping at the students from a chair.. Students just tossed paper worksheets.

 

* it's nonsense btw 

I agree.

Take out corruption (which will not happen) and things could certainly improve i.e. more money for education and less money for the pockets of the corrupt from the top down to the school directors. Education is simply a business here. I was told of a school that had a smart board but it was not to be used. It was simply for advertising. This was from a person that taught there. 10 to 1 the parents payed for it and the purchasing price was way above the odds.

[mfd101]

On 9/30/2023 at 4:45 AM, webfact said:

The pandemic has led to more workers taking retirement at 55 years of age due to fears of economic insecurity.

Not sure how that sentence makes any sense. If you have 'fears of economic insecurity' you would presumably work longer?

[Gknrd]

On 9/30/2023 at 7:49 AM, dinsdale said:

Forced retirement is insane in a country that has no real social security. Off to the poverty bin for you unless you have been in a postion to amass a fortune through corruption or you are born into wealth. No difference I guess. I've said it before and I'll say it again. "Big shiny buildings yes. 3rd world yes." As it stands I believe a 60 yr old gets Bt600 a month unless they have been a govt employee then it's still very low. The people of Thailand cannot be cared for by the 'government'  because pockets must be filled 1st.

Ex girlfriends sister retired school teacher 35K/yr.  husband retired hospital 10K/yr.. Then went out and bought a new car and built a new house... Now they are in their 70's and not end in sight. Working 10 hour days trying to stay up with the jones...