Benefits based on adjusted lifetime earnings instead of final 60 months will be fairer

PUBLISHED : 13 Nov 2025 at 06:03

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The Social Security Board (SSB) has unanimously approved a draft ministerial regulation introducing the new Career Average Revalued Earnings (Care) pension formula, expected to take effect early next year, to improve benefits for insured workers.

The new Care system will replace the formula that calculates pensions based on the final 60 months of salary. Under the current structure, workers whose income declines before retirement, or those who move from formal employment (under Section 33) to voluntary coverage (under Section 39), are often unfairly penalised.

The new approach will instead use adjusted lifetime average earnings to calculate pensions more accurately, ensuring greater equity and better alignment with workers’ actual income levels.

The board meeting, chaired by Pol Lt Col Wannapong Kotcharak, permanent secretary for labour, on Tuesday reviewed the results of a public hearing on the Care formula alongside the draft ministerial regulation before unanimously approving it.

Speaking after the meeting, Pol Lt Col Wannapong said the next step is to finalise a related regulation and complete legal procedures before seeking another round of board approval. He said the board believes the new pension formula will be beneficial and aligned with international standards, helping strengthen Thailand’s social security system for long-term stability.

A subcommittee will also be established to study the fund’s long-term strategy, including financial stability, risk assessment, potential gaps, and impacts on uninsured or excluded groups. The subcommittee will recommend measures to ensure sustainability and inclusiveness, he said.

However, he said the original plan to enforce the changes by Jan 1 may be too ambitious, as the Council of State still needs to review the legal wording to avoid misinterpretation. He added that the new formula will move in tandem with a proposal to raise the wage contribution ceiling, which is still awaiting cabinet approval and could delay implementation beyond Jan 1.

Meanwhile, Sustarum Thammaboosadee, the SSB member representing insured people, said the new formula will next be submitted to the labour minister and then to the cabinet for approval before publication in the Royal Gazette. He was hopeful that implementation could still begin in January, which would benefit around 570,000 insured contributors.