A new formula for calculating retirement pensions under Sections 33 and 39 of the Social Security Act has been approved and will take effect on January 1. The adjustment aims to provide fairer and higher pension benefits for insured individuals.
Marasri Jairangsri, Secretary-General of the Social Security Office (SSO), announced that the Social Security Board (SSB) has endorsed the changes, which are expected to improve retirement payouts from next year.
Who Benefits?
The revised formula will increase pension payments, particularly for those under Section 39, who voluntarily continue contributing to social security after leaving their jobs. This group has historically received lower pensions under the current system.
“The adjustment will provide better financial support for retirees who previously received smaller pensions,” Ms. Marasri explained.
Striving for Balance
A working group will refine the details to ensure maximum benefits while minimizing potential drawbacks, especially for individuals under Section 33, whose contributions are shared by employers and the government.
To allow public input, a public hearing will be held within 90 days.
A Long-Awaited Reform
Ms. Marasri highlighted that nearly 800,000 insured individuals will benefit from the updated pension formula. She also expressed appreciation for stakeholders who have pushed for these reforms since 2020.
Board member and employee representative Montree Tirakothat welcomed the change, emphasizing that the new calculation method will make the social security system fairer.
Civil society groups also supported the update, noting that it reflects the rising cost of living and the need for better retirement security.
