More than 30 million informal workers are being affected by the government's failure to enforce the National Savings Fund Act, workers and academics say.
Chanachai Prayoonsin, executive director of the Savings and Investment Policy Bureau, said although the law had been in force since May 2011, the government has still not set up the pension fund.
There are more than 30 million informal workers in Thailand, he said. They are not eligible to be members of a provident fund or the Social Security Fund.
The Abhisit Vejjajiva government passed the National Savings Fund Act in 2011, creating a system designed to extend welfare benefits to and ensure the financial security of informal workers.
"After the law was approved, the National Saving Fund was supposed to be set up and members enrolled within a year. But now the government wants to amend the law so that the fund cannot be established," Mr Chanachai said.
The Finance Ministry is considering amending some of the fund's regulations, including the amount of money the state would contribute; whether those over the age of 60 can participate; and whether members can choose to receive a regular pension or a lump sum upon retirement.
Worawet Suwanrada, dean of Chulalongkorn University's population studies college, said the law had already been approved and did not need changing. He said the law would benefit all informal workers and must enacted immediately.
"The law says [informal workers'] savings can be returned only in the form of a pension, but the government now wants informal workers to be able to choose between a pension or a one-off payment," he said.
"I don't think it's necessary for the law to be changed. The payment must only be in the form of a pension."
Sujin Rungsawang, chairwoman of the Informal Workers Network, said many workers want to be members of the National Savings Fund as it offers them a form of spending assurance that they could not otherwise have access to.
Arunee Srito, a former Thai Kriang Textile Co labour union leader, demanded a swift resolution as she is nearing the registration cut-off age. She is now 59, and the law states members must be 15-60.