After three-hour meeting on Tuesday, the social security board has agreed unanimously to adopt the CARE (Career Average Revalued Earnings) formula in the calculation of pensions for people insured under Sections 33 and 39 of the Social Security Act.
Marasri Jairangsri, secretary-general of the Social Security Office, said that the board, which comprises representatives of employers, employees and the government, has been working on a new formula since 2020 and has just concluded its deliberations, adding that the new formula will be applied to an initial batch of 100,000 pensioners, who will see their monthly income increase by January next year.
The board’s decision to use the CARE system will, however, be subjected to 90 days of public hearings.
Thanapong Chuamuangpan, a board member representing employees, insists that the CARE system will ensure that all parties concerned are treated fairly.
Another board member, representing employers, said that the board’s decision should encourage more employees to join the social security system by contributing about 5% of their monthly salaries to the social security fund, while their employers will also contribute.
People insured under Section 33 are employees of a private firm who are aged between 15 and 60 who contribute 5% of their monthly earnings, deducted by their employers, to the social security fund, but not exceeding 750 baht per month. Their employers will make matching contribution.
The employees will be entitled to protection in case of sickness, unemployment, disability, old age, childbirth, child welfare and death.
Those insured under Section 39 are former employees of private firms, who have contributed to the fund for at least 12 months but have resigned for no more than six months.
