The insured (both men and women) who have reached the age of 55 are qualified to get old age benefit. At least 180 months (15 years) of contributions are required for monthly pension receipt and the pension benefit is adjusted for a longer contribution period. For the insured persons with less than 180 months of contribution a lump sum payment equivalent to the total contributions is made. In both cases employment must cease.


Initially introduced as a targeted scheme the pension became universal to all apart from civil servants or permanent government employees from 2009. The monthly amounts vary by age, THB 600 is paid to persons aged 60 to 69; THB 700 if aged 70 to 79; THB 800 if aged 80 to 89; and THB 1 000 if aged 90 or older.


Workers accrue 20% of their earnings for the first 15 years and then 1.5% for every year thereafter. The base wage used for benefit calculation is the average wage over the last five years prior to retirement. Indexation rules are discretionary and the modelling assumes price indexation of pensions in payment.

Early retirement

It is not possible to claim the earnings-related pension before the normal age of 55.

Late retirement

It is possible to retire later than the age of 55 and the pension continues to accrue by 1.5%.

Taxation of workers

There are various tax relief systems and the employed receive a tax deduction of 50% of assessable income up to THB 100 000. Single insured persons receive a personal allowance of THB 60 000. Social security contributions are tax deductible.

Taxation of worker’s income

The following tax schedule is applicable to taxable income (assessable income after deductions and allowances):

Social security contributions payable by workers

Insured persons pay social security contributions. For old age pension, the contribution rate is 3% between the floor of THB 1 650 per month and the ceiling of THB 15 000 per month. They also pay 1.5% of earnings for sickness, maternity, invalidity and death benefits and 0.5% of earnings for the unemployment insurance scheme.

Taxation of pension income

All pension incomes are exempted from taxation. The elderly above 65 who continue working receive an old age tax allowance of THB 190 000.

Social security contributions payable by pensioners

Pensioners do not pay any social security contributions.

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