The Finance Ministry wants 1 million wealthy elderly people to forgo their old-age living allowances so that the minimum monthly allowance for the needy can be raised to 800 baht from 600 baht.
To increase the living allowance for needy senior citizens to 1,000 baht a month, 2 million people would have to relinquish their allowance, said Finance Minister Apisak Tantivorawong.
The ministry has launched a campaign through the banks to encourage the rich elderly to forgo their monthly living allowance so it can be redirected to those most in need. A meagre 800 have agreed to donate their allowances.
Under the scheme, seniors who want to relinquish the living allowance can express their intentions at bank branches nationwide instead of district offices as was required previously. Those who give up the allowance are able to deduct the amount from taxable income.
Those who show intention to forgo their living allowance at branches of commercial and state-owned banks from Feb 1 to March 31 will be awarded medals and certificates signed by Prime Minister Prayut Chan-o-cha.
The Finance Ministry is seeking a way for Thais to maintain living standards post-retirement and has estimated that 1,200-1,500 baht per month is the minimum amount the elderly need.
All elderly Thais are entitled to a progressive living allowance, with 600 baht paid monthly to those aged 60-69, 700 baht to those aged 70-79, 800 baht to those aged 80-89 and 1,000 baht to Thais aged 90 and older.
Initially, the government approved redirecting 2% of sin tax to increase the allowance to the needy, but the 4 billion baht derived from the redirection is not sufficient to offer them all 800 baht a month.
The Finance Ministry spends 70 billion baht a year to provide a living allowance to 9 million elderly people, of whom 4.6 million also hold welfare smartcards.
According to the Finance Ministry's data, 90% of the 4.6 million, or 3 million people, are living in poverty and 2 million of them do not own homes.
Thai Bankers' Association chairman Predee Daochai said that all commercial banks launched advertising through 70,000 ATM terminals, branches nationwide, and Line and Facebook channels to solicit the wealthy elderly to forgo their welfare allowance.