"Social Security" for Thais. A question.

[swissie]

So far I thought that Thai Citizens, past the age of 60, receive a monthly "Social Security Check" of Bht 600. (A kings ransom). As I hear, this royal sum will not be forthcoming anymore unless a Thai Senior can prove that he is financially "in dire straits"?!?!

Correct or not?

If correct, it would not come as a big surprise to me as globally "social security systems" are being softly "toned-down". Just one example: Not full compensation for inflation as a start.

Maybe we should listen to the words of a highly successful investor (Warren Buffet).

I quote: "We are in the middle of a class-war. The rich against the poor. We (the rich) are winning". He also mentioned that he pays less taxes than his secretary.

Back to the question: Will the "Thai Social Security System", as meek as it was before, be practically abolished?   Yes/No? What's the latest?

[Neeranam]

Where did you hear that? 

I've never heard anything. 

 

[Sheryl]

It is not Social Security. That is a totally  differentsystem based on contributions while employed (and it does include s small pendmsion benefit).

 

For a couple of years now elderly Thais with no or very very low other income  are eligible for a 600 baht a month allowance from government.  This always has been limited to the poir and is entirely separate ftom the Thai SS system.

 

 

[swissie]

21 minutes ago, Sheryl said:

It is not Social Security. That is a totally  differentsystem based on contributions while employed (and it does include s small pendmsion benefit).

 

For a couple of years now elderly Thais with no or very very low other income  are eligible for a 600 baht a month allowance from government.  This always has been limited to the poir and is entirely separate ftom the Thai SS system.

 

 

High time we talk about "Thai Social Seccurity", I find.

Correct me if I am wrong : Thai governement emplyees receive retirement benefits or folks working for international companies. All other "Thai Old Mortals" got 600 Bht/month so far.

Again: A good time to generally look at "Thai Social Security" at this time, it may even affect Farangs, having married into a large (mostly elderly) Thai Family.

 

[swissie]

33 minutes ago, Neeranam said:

Where did you hear that? 

I've never heard anything. 

 

If I remember correctly, there were articles in this forum concerning this subject. Sub forum "Thailand News". But nothing conclusive in form of a final  "follow-up". Pending further parlamentary discussions as I gather.

 

[bigt3116]

6 hours ago, swissie said:

Correct me if I am wrong : Thai governement emplyees receive retirement benefits or folks working for international companies. All other "Thai Old Mortals" got 600 Bht/month so far.

 

Wrong, any Thai or foreigner working for any company can be enrolled into the Social Security system.

[jumbo]

4 minutes ago, bigt3116 said:

 

Wrong, any Thai or foreigner working for any company can be enrolled into the Social Security system.

And any Thai and foreigner are eligible for extension, when employment is cancelled or at retirement, of said Social Security, at least for the health insurance part for 432 THB per month

A HUGE benefit

[Ralf001]

6 hours ago, Sheryl said:

It is not Social Security. That is a totally  differentsystem based on contributions while employed (and it does include s small pendmsion benefit).

 

For a couple of years now elderly Thais with no or very very low other income  are eligible for a 600 baht a month allowance from government.  This always has been limited to the poir and is entirely separate ftom the Thai SS system.

 

 

 

GPF.

Government Pension Fund.

[Ralf001]

10 minutes ago, bigt3116 said:

 

Wrong, any Thai or foreigner working for any company can be enrolled into the Social Security system.

 

[Ralf001]

4 minutes ago, jumbo said:

And any Thai and foreigner are eligible for extension, when employment is cancelled or at retirement, of said Social Security, at least for the health insurance part for 432 THB per month

A HUGE benefit

 

Yeah I'll be keeping mine going for sure.

[Neeranam]

3 hours ago, Ralf001 said:

 

Yeah I'll be keeping mine going for sure.

I recently retired and kept it, it's a great safety net to have! In a year or so, the 600 baht I get monthly will pay for the insurance.

[jumbo]

On 11/12/2023 at 6:09 AM, Ralf001 said:

 

Yeah I'll be keeping mine going for sure.

You will need to extend within 6 months after leaving job or retirement

[Ralf001]

33 minutes ago, jumbo said:

You will need to extend within 6 months after leaving job or retirement

 

I will extend sane day of leaving.

[LukKrueng]

On 11/11/2023 at 11:26 PM, Sheryl said:

 

For a couple of years now elderly Thais with no or very very low other income  are eligible for a 600 baht a month allowance from government.  This always has been limited to the poir

I don't know how long ago this has been established, but more than a couple of years ago. It has nothing to do with economical status or earning, every Thai citizen between the ages of 60-69 get 600 Baht\month. From 70-79 they get 700, 80 and over they get 800\month (I think that's as high as it gets, but not sure).

There were talks on changing the system that from now on only poor and very low income citizens will get it, but all those that are already on the system will continue to get it as before.

[khunPer]

On 11/11/2023 at 5:00 PM, swissie said:

So far I thought that Thai Citizens, past the age of 60, receive a monthly "Social Security Check" of Bht 600. (A kings ransom). As I hear, this royal sum will not be forthcoming anymore unless a Thai Senior can prove that he is financially "in dire straits"?!?!

Correct or not?

Not correct. The 600 baht is not from Social Security, but a government air.

 

Social Security old age pension requires a number of years membership and is dependant of how much you have attributed yourself...

 

[digger70]

How much is aged pension in Thailand?

Transfer amount is tiered according to age. Those aged between 60-69 receive 600 Baht a month. Those aged between 70-79 receive 700 Baht a month. Those aged between 80-89 receive 800 Baht a month.

 

This guide provides an overview of different issues concerning social security in Thailand.

Social security registration is mandatory for employees in Thailand under labour law and allows employees to access social security benefits.

Knowing the following social security information is imperative if you are an employer or employee in Thailand.

What is social security in Thailand?

Social security is a fund providing security and coverage to insured individuals. Employers and employees are required by the Social Security Act to make contributions to the Social Security Fund on a monthly basis.

What is the social security contribution in Thailand?

The current contribution rate is 5% of the employee’s salary.

The minimum salary to be calculated is THB 1,650 and the maximum is THB 15,000; therefore, the minimum contribution is THB 83, and the maximum is THB 750. Even though an employee’s salary exceeds THB 15,000, the maximum contribution will be THB 750.

Contributions must be submitted to the Social Security Office within the 15th of the following month.

[timendres]

On 11/12/2023 at 6:09 AM, Ralf001 said:

 

And, as in my case, owners of the company also do not pay or qualify.

[jumbo]

1 hour ago, digger70 said:

 

The minimum salary to be calculated is THB 1,650 and the maximum is THB 15,000; therefore, the minimum contribution is THB 83, and the maximum is THB 750. Even though an employee’s salary exceeds THB 15,000, the maximum contribution will be THB 750.

Contributions must be submitted to the Social Security Office within the 15th of the following month.

This is correct and in my opinion also a way to make sure that elderly people have a good pension/retirement allowance by increasing the 15.000 thb maximum to unlimited. This means that the higher salaries will pay more in support of the elderly, for me a totally acceptable principle

They could find another maximum or reduce the percentage per 100,000 thb earnings...

 

SS fund is one of the richest in Thailand. Expats will have noticed the reduced monthly payment during Covid, starting in 2020 and ending the end of last year and in the meanwhile they supported free treatment for all SSO groups.  

 

SSO should, in my opinion, create a separate group for expats at 5%(?) of income....which is more than the average (and rich) Thai pays

Everybody happy and the farang pay 'more' so some government people even more happy

[sandyf]

On 11/13/2023 at 7:21 AM, jumbo said:

You will need to extend within 6 months after leaving job or retirement

When my wife reached the age of 55 she had the option of cashing out or remaining in and as you say think she had to make that decision within 6 months.

Can't remember now how much it would have been cashing out, a few hundred thousand I think, she was certainly tempted. 

I took the view that it was potentially more beneficial to remain in and she did so.

[swissie]

9 hours ago, digger70 said:

How much is aged pension in Thailand?

Transfer amount is tiered according to age. Those aged between 60-69 receive 600 Baht a month. Those aged between 70-79 receive 700 Baht a month. Those aged between 80-89 receive 800 Baht a month.

 

This guide provides an overview of different issues concerning social security in Thailand.

Social security registration is mandatory for employees in Thailand under labour law and allows employees to access social security benefits.

Knowing the following social security information is imperative if you are an employer or employee in Thailand.

What is social security in Thailand?

Social security is a fund providing security and coverage to insured individuals. Employers and employees are required by the Social Security Act to make contributions to the Social Security Fund on a monthly basis.

What is the social security contribution in Thailand?

The current contribution rate is 5% of the employee’s salary.

The minimum salary to be calculated is THB 1,650 and the maximum is THB 15,000; therefore, the minimum contribution is THB 83, and the maximum is THB 750. Even though an employee’s salary exceeds THB 15,000, the maximum contribution will be THB 750.

Contributions must be submitted to the Social Security Office within the 15th of the following month.

Wow! That should cover the cost of the daily bowl of rice.

[Neeranam]

5 hours ago, sandyf said:

When my wife reached the age of 55 she had the option of cashing out or remaining in and as you say think she had to make that decision within 6 months.

Can't remember now how much it would have been cashing out, a few hundred thousand I think, she was certainly tempted. 

I took the view that it was potentially more beneficial to remain in and she did so.

I bought a bitcoin with my payment (160,000 baht) and that is worth $36,000 right now. 

[jumbo]

17 hours ago, sandyf said:

When my wife reached the age of 55 she had the option of cashing out or remaining in and as you say think she had to make that decision within 6 months.

Can't remember now how much it would have been cashing out, a few hundred thousand I think, she was certainly tempted. 

I took the view that it was potentially more beneficial to remain in and she did so.

2 different things of the SSO

The lumpsum is related to provident fund

The health part and extension is separate

 

So you can ask for the lumpsum and still extend the health part.

That's what I did

[Ralf001]

19 hours ago, jumbo said:

This is correct and in my opinion also a way to make sure that elderly people have a good pension/retirement allowance by increasing the 15.000 thb maximum to unlimited. This means that the higher salaries will pay more in support of the elderly, for me a totally acceptable principle

They could find another maximum or reduce the percentage per 100,000 thb earnings...

 

SS fund is one of the richest in Thailand. Expats will have noticed the reduced monthly payment during Covid, starting in 2020 and ending the end of last year and in the meanwhile they supported free treatment for all SSO groups.  

 

SSO should, in my opinion, create a separate group for expats at 5%(?) of income....which is more than the average (and rich) Thai pays

Everybody happy and the farang pay 'more' so some government people even more happy

 

@ 5% of income SS is bordering on not financially viable as the cost would exceed the cost of private insurance (assuming one qualifies for private).

 

Hypothetically if it was to raise to 5% of income... the employer will match the contribution like they do now ?

 

 

[jumbo]

3 hours ago, Ralf001 said:

 

@ 5% of income SS is bordering on not financially viable as the cost would exceed the cost of private insurance (assuming one qualifies for private).

 

Hypothetically if it was to raise to 5% of income... the employer will match the contribution like they do now ?

 

 

I am just playing around with a thought,  If someone makes 250,000 thb it means at 5% 12,500 thb which is somewhat high, maybe a gradual rate downwards and a maximum

Employers would not have to provide additional health cover, as mine did/does, they could involve more private hospitals to accept the card... even make it mandatory given the oath doctors take

Like I said, just  a thought and absolutely nothing else

[Ralf001]

3 hours ago, jumbo said:

I am just playing around with a thought,  If someone makes 250,000 thb it means at 5% 12,500 thb which is somewhat high, maybe a gradual rate downwards and a maximum

Employers would not have to provide additional health cover, as mine did/does, they could involve more private hospitals to accept the card... even make it mandatory given the oath doctors take

Like I said, just  a thought and absolutely nothing else

 

Current system works just fine.

[sandyf]

On 11/15/2023 at 8:35 AM, jumbo said:

2 different things of the SSO

The lumpsum is related to provident fund

The health part and extension is separate

 

So you can ask for the lumpsum and still extend the health part.

That's what I did

If that had been an option open to her she would have taken it.

[Neeranam]

If you have paid for over 15 years, you don't get that option.

[mfd101]

Noone seems to have mentioned that the people who get the 600+ baht old-age payment are mostly people who have spent their lives NOT in the formal economy - piece workers, part-timers of all kinds, and of course millions of peasants in rural villages.

 

And they have their own 'informal' arrangements out in the villages eg My PILs (just a little older than me) have paid a few baht monthly for many years in to the village 'life insurance' (my term) fund. When they die, their 2 youngest sons (including my partner) will receive some 200,000 baht out of the village fund. (That is, if it hasn't already been stolen by the village Head Person.)

Edited November 25, 2023 by mfd101

[prakhonchai nick]

42 minutes ago, mfd101 said:

Noone seems to have mentioned that the people who get the 600+ baht old-age payment are mostly people who have spent their lives NOT in the formal economy - piece workers, part-timers of all kinds, and of course millions of peasants in rural villages.

 

And they have their own 'informal' arrangements out in the villages eg My PILs (just a little older than me) have paid a few baht monthly for many years in to the village 'life insurance' (my term) fund. When they die, their 2 youngest sons (including my partner) will receive some 200,000 baht out of the village fund. (That is, if it hasn't already been stolen by the village Head Person.)

In my rural village it is the same. Money paid out from a village fund when someone dies, as long as someone has been paying the dues. Rather than a specific payment each month, payments are made and collected, each time an insured member dies..

[PeachCH]

When I was working in Thailand, my employe paid for my social security. After resigning, I received a check with a lump sum of around 90k.