Retirement Age in Thailand

Statutory Retirement Age in Thailand

• Retirement Age: If an employment contract or company policy does not specify a retirement age, the statutory retirement age is 60 years.
• Retirement Process: Employees wishing to retire at 60 must notify their employer. The retirement becomes effective 30 days after notification.
• Severance Pay: Retirement at the statutory age is considered termination by the employer, entitling employees to severance pay based on their length of service.

Proposed Increase to Retirement Age

• Planned Adjustment: The Ministry of Labour has proposed raising the retirement age for both public and private sectors from 60 to 65 years.
• Rationale: This change aims to reflect increased life expectancy and to align with practices in countries like Singapore and Switzerland.
• Implementation Status: As of now, this proposal is under consideration and has not been enacted into law.

Pension Eligibility and Social Security Considerations

Current Pension Eligibility

• Age Requirement: Individuals are eligible for the Social Security Office (SSO) old-age pension at 55 years, provided they have contributed to the fund for at least 15 years.
• Contribution Requirements: Eligibility requires a minimum of 180 months (15 years) of contributions to the SSO.

Proposed Changes to Pension System

• Extended Contribution Age: There’s a proposal to extend the maximum age for SSO contributions from 60 to 65 years, allowing older workers to continue contributing and enhancing their pension benefits.
• Increased Wage Ceiling: Plans are in place to gradually raise the wage ceiling for social security contributions from 15,000 baht to 23,000 baht by 2032.
• Government Contributions: The government is considering increasing its contribution to the Social Security Fund from 2.75% to 5% to bolster the fund’s sustainability.

Old Age Allowance (OAA)

• Eligibility: Thai nationals aged 60 and above are eligible for the OAA, a state-provided monthly allowance.
• Payment Structure:
  • Ages 60–69: ฿600 per month
  • Ages 70–79: ฿700 per month
  • Ages 80–89: ฿800 per month
  • Ages 90 and above: ฿1,000 per month

• Means Testing: Starting in 2023, the OAA became means-tested, limiting eligibility to individuals with no or insufficient income to cover living expenses.

Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Thailand employment laws and regulations, please visit the official governmental websites.

Updated on: June 2025