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Retirees set to receive 10-month compensation 


The cabinet approved an amendment to the Labour Protection Act which employers requires to provide compensation to retiring workers extend minimum wages to cover more workers.

The compensation aims to "prepare Thailand’s ageing society" ", Kopsak Phutrakun, assistant to the Prime Minister's Office minister stated.

Previously, retirement was not considered as “lay-off", therefore retirees would not receive compensation. Now it will be regarded as disemployment and employers required by the law to compensate them.

He explained that the amount of compensation will depend on the number of years that the employee works in the company. For example, those who have been working for more than 10 years are entitled to 10 months' compensation based on their most recent salary. Others who have worked between six to ten years will receive less compensation under an eight-month package.

"We believe this law will provide better benefit for all retirees and if the company does not set their own retirement age, the government will set it at age of 60.

As Thailand approaching so called ageing society, authorities are helping senior citizens to prepare to live good-quality lives as the number of elderly people is expected to make up 20% of the population, or one in five persons by the year 2025.
The 2010 survey by the Public Health Ministry found about 1.4 million elderly Thais suffered from degenerative joint disease while 880,000 others had dementia. "We received many complaints from retirees regarding the lack of compensation”, Mr. Komsak added.
The approved amendment also has more groups such as youths, disabled persons and senior citizens covered by the minimum wage



January 2017


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