According to its action, only officials who reached a certain age were provided with pension payments. But since then, the system has changed several times. The final version was formed only by the end of the last century. Now there are two programs, participation in which is mandatory.
State pension system
Over the past decade, Thailand has developed its pension system. Thailand is the only Asian country other than South Korea with advanced retirement plans, at least in the formal sector. It is remarkable, especially since Thailand has one of the lowest per capita incomes according to statistics.
Unlike other countries in Asia, Thailand introduced a defined contribution program for civil servants. It was to ease the pressure on the government budget that the defined benefit program was created.
The planned introduction of the National Pension Fund compulsory defined pension plans for private-sector workers can help generate income after retirement. With these innovations, Thailand will have a pension system that is largely based on the World Bank model.
In 2012, the Thai government introduced a new voluntary pension scheme called the National Savings Fund. This program provides a pension for all Thai workers, even those who work unofficially.
And of course, the strong institution of the family in Thailand should not be discounted. In Thailand, children do not leave their parents without a livelihood.
Thailand’s old-age pension scheme for people working in the private sector has only recently been in operation since 1999. Each such employee is required to participate in this program. The employer deducts 3% from the salary of an employee. The state adds another 1% to this amount.
- Any Thai company that has at least 1 employee needs to pay contributions to the Old Age Pension Fund.
According to statistics, donations are made for about 9 million people. But about 22 million work in companies that operate illegally, so no one pays contributions for them. If contributions are made for an employee for 15 years, then a worker has the right to receive pension payments upon reaching the age of 55.
The next category of citizens who receive a pension is state employees. The composition of such employees is diverse. Therefore several pension systems have been developed for them. But all of them are based on a once advanced government program that is funded without contributions from the employer.
An official who has worked for 10 to 25 years and has reached the age of 50 can count on such a pension.
Civil servants receive their pension from the State Pension Fund. It is replenished with transfers from the salaries of civil servants – 3% of the number of earnings. It is the most current program. The transition is carried out in stages.
Participants of the program have the opportunity to receive a pension upon reaching the age of 60. Also, they can obtain a certain amount from the accrued interest. This amount is not taxed if it does not exceed 300 thousand baht.
The country still has various programs operating voluntarily. Programs are registered as savings funds – legal entities operating legally. They are replenished with voluntary contributions from the employee – 2-15% of wages.
The employer’s contributions are added to this amount. There are no specific requirements for these structures from the state. The safety of the offering is not ensured either.
The accumulated funds are paid on a one-off basis. The amount consists of the contributions of the employee and the employer, as well as the accrued interest. For pensioners who have reached the age of 55, this amount is not taxed if they have made contributions for 5 years or more.
In Thailand, elephants receive a pension
In Thailand, elephants are especially respected by the inhabitants. Thailand is the only country in the world where these animals are entitled to a pension after they reach 60 years of age.
The country’s constitution protects the rights of elephants as well as the rights of humans. And this is no accident. These animals are considered sacred in Thailand, and they work for the good of the state in the same way as people. For example, after a terrible flood that happened not so long ago, the elephants, along with people, eliminated the consequences of the disaster – they dismantled the rubble, pulled out rotten trees, etc.
There is work for them in everyday life. Moreover, they work in various jobs. For example, they transport people, take part in construction work. No wonder the elephants have earned respect. They are supposed to work no more than 5 hours a day. The owners have no right to force a sick elephant to work. By the way, whoever kills this sacred animal is sentenced to death.
Many elephant owners cannot expect to receive a pension of the same size as their wards. Moreover, they believe that this is quite fair. In their opinion, elephants deserve such payments, since they work until the last days of their lives, and not everyone lives up to 60 years.
In addition to financial support, venerable elephants who have retired are entitled to medical care. And during their work, they are even given sick leave certificates.
For elephants, schools have been created in the country where they are trained to further benefit the country at a certain job. Animals are trained for 3 years and begin to work from the age of 12.