Labor Groups Urge Government to Delay Pension Formula Change
Thai labor unions are pushing the government to reconsider a new pension calculation formula, arguing it would reduce retirement benefits for workers rather than protect them.
Labour union leader Sawit Kaewwan, president of the Thai Labour Harmony Association (SLRB), led a delegation to meet with Piphatchai Paiboon, spokesman for the Ministry of Labour, on August 3, 2024, to discuss objections to the CARE formula for calculating retirement benefits under the social security system. The union expressed concern that this approach may negatively impact insured workers' rights and called for a thorough government review.
Piphatchai stated that the ministry invited all relevant parties to discuss the matter and allow for an exchange of views on the concerns raised. He acknowledged that while many points of contention were clarified during the meeting, some issues remain unclear. The labour group is scheduled to meet with Labour Minister Julphan Amornvivat at Government House on August 4 to discuss the matter further.
The key point of disagreement centres on how to calculate the 180-day baseline period. One side argues that using only the final 180 days protects workers in case salaries drop, while the other contends that including earlier data from day one provides better security and certainty, even if recent salary reductions affect the calculation.
Sawit stated that the formula appears unfair and reflected concerns from multiple stakeholders. He argued that averaging all salary data will only reduce benefits, not increase them, and that using job uncertainty as justification contradicts the Labour Ministry's core mandate to protect workers and ensure social welfare. He also cautioned that assuming future employment patterns—such as variable hours or unpredictable income—may not align with reality and could lead to flawed policy design.
After extensive discussions, no consensus has been reached, as each side maintains that its proposed approach is correct and fair. The social security office also claims to uphold fairness principles but has yet to establish a universally accepted standard.
