The Finance Ministry is to lay out a roadmap to deal with the advent of an ageing population, also setting up a fund to provide an additional living allowance for poor elderly people.
The Fiscal Policy Office (FPO) was delegated by the government to discuss drafting of the roadmap with related ministries, including the Public Health, Social Development and Human Security, Labour, Education and Interior, said FPO director-general Krisada Chinavicharana.
Measures to care for the growing number of elderly is among the government's priorities, aimed at allowing them to live comfortably in post-retirement life and alleviating the government's financial burden as the population ages. In 2015, the government successfully pushed for the establishment of the National Savings Fund (NSF), a voluntary retirement safety net for 25 million non-formal workers.
The cabinet last year also approved a package allowing companies that hire ageing workers with a salary of 15,000 baht a month or less to be eligible for a double corporate tax deduction on expenses incurred.
Other measures in the package included reverse mortgages -- a home loan that allows the elderly to convert their home equity into cash -- and a mandatory provident fund to help retired senior citizens afford living costs and to strengthen the retirement safety net.
Mr Krisada said the Finance Ministry is considering raising the monthly living allowance for poor elderly people. The monthly living allowance should be at least 1,200-1,500 per person, he said.
All elderly citizens are now entitled to the step-up living allowance, with 600 baht monthly paid to those aged 60-69, 700 baht to those 70-79, 800 baht to those 80-89, and 1,000 baht to those 90 and older.
There are about 10 million people aged 60 or older nationwide, 8 million of whom receive a monthly living allowance from the government. The government spends 70 billion baht annually to cover their living expenses.
The Finance Ministry plans to redirect portions of sin taxes -- taxes from cigarette and alcohol sales -- worth 4 billion baht from the Thai Health Promotion Foundation and the National Sport Fund to finance the new elderly fund, he said.
Whatever portion of the living allowance some elderly people abstain from receiving will be redirected to those in need, said Mr Krisada.
He said previous registration for the government's subsidy and welfare scheme found 2 million elderly people earn an annual income of 100,000 baht or less. The higher living allowance will be directed to these people.
The road map will also cover health problems and accommodation of the elderly.
Dealing with an ageing society requires cooperation from the private sector, said Mr Krisada, such as volunteers who take care of bed-ridden elderly.
An FPO report forecast those aged 60 and older will account for 20% of the total population in 2025, an increase from 14% in 2015. It also predicted the government's financial burden to the Social Security Fund, the NSF and the Government Pension Fund will increase to 698 billion baht in fiscal year 2024 from 290 billion in fiscal 2016.