Social security reforms target the ageing domestic workforce - Bangkok Post

Voters check their names on electoral rolls and cast their ballots in the Social Security Office Board election, at Wat Bang Toei School in Bangkok's Bueng Kum district on Oct 11. (Photo: Varuth Hirunyatheb) The cabinet has approved a draft amendment to the Social Security Act, proposing to raise the maximum age for insured persons from 60 to 65 years to accommodate Thailand's ageing population.

According to deputy government spokeswoman Patdarasm Thongsaluaykorn, the mobile cabinet on Tuesday approved a draft amendment to the Social Security Act, proposed by the Labour Ministry, to modernise the law, address the needs of an ageing society and provide more comprehensive protection for insured persons.

The existing Social Security Act of 1990 has been in force for several years, and certain provisions are no longer appropriate or consistent with current conditions, she noted.

The draft legislation extends the maximum age for insured employees under Section 33 from 60 to 65 years, allowing older workers to remain covered. The law also extends child allowance benefits for an additional six months after employment ends, increases maternity leave compensation in line with labour protection laws, and raises compensation for loss of income due to non-work-related disability to a maximum of 70% of wages, up from the current 50%.

In addition, insured persons who have contributed for at least 180 months are allowed to choose between receiving an old-age pension and a lump-sum old-age benefit upon reaching age 55, or when their insured status ends. Those who have contributed for at least 60 months are permitted to withdraw part of their old-age savings before reaching 55 in cases of severe disasters affecting their livelihood, or they can use the savings as collateral for loans from financial institutions that have agreements with the Social Security Office. Such withdrawals or collateral arrangements are limited to 30% of accumulated old-age benefits and no more than twice the maximum wage base.

The draft also allows retirees who are unemployed but wish to retain social security coverage, such as medical benefits, to remain enrolled as insured persons. Under this arrangement, the government contributes one part and the insured person two parts towards coverage for illness, disability and death.

Lalida Persvivatana, another deputy government spokesperson, said the cabinet also approved amendments to the Signboard Tax Act, which has been in effect since 1967, to modernise the law and ensure greater fairness for businesses. Key provisions include calculating signboard tax based on the actual period of installation rather than charging a full year's tax when a signboard is displayed for less than a year, extending the tax payment deadline from 15 to 30 days, and introducing measures allowing signboard tax reductions of up to 90% of the tax liability. The changes also revise maximum tax rates to reflect current economic conditions.