Thailand: Pension system in 2016

Private sector employees in the formal sectors are covered under the Social Security Fund (SSF). The old-age benefit scheme under SSF is a defined benefit scheme.

Key indicators: Thailand



Average earnings


174 319

1 311 437



4 868

36 622

Public pension spending

% of GDP



Life expectancy

at birth




at age 65



Population over age 65

% of working- age population




Qualifying conditions

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.

Benefit calculation


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.

Variant careers

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%.

Personal income tax and social security contributions

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

Annual taxable income

Tax rate

1-THB 150 000


THB 150 001-THB 300 000


THB 300 001-THB 500 000


THB 500 001-THB 750 000


THB 750 001-THB 1 000 000


THB 1 000 001-THB 2 000 000


THB 2 000 001-THB 5 000 000


THB 5 000 001 and over


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 pensioners

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.

Pension modelling results: Thailand in 2051 retirement at age 55

Assumptions: Real rate of return 3%, real earnings growth 1.25%, inflation 2%, and real discount rate 2%. All systems are modelled and indexed according to what is legislated. Transitional rules apply where relevant. DC conversion rate equal 90%. Labour market entry occurs at age 20 in 2016. Tax system latest available: 2016.


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