Workers blast call to lift age of retirement

Workers blast call to lift age of retirement

Labour leaders and workers have rejected proposals to extend the retirement age of workers in the private sector from 55 to 60.

They said such a scheme would delay old-age benefits which many workers are waiting to receive.

During a labour seminar on Tuesday, Ladda Damrikanlert, deputy secretary-general of the Foundation of Thai Gerontology Research and Development Institute, called for the retirement age of employees in the private sector to be raised to 60.

But Chalee Loysung, a worker at Panasonic Co, said many workers in their production line are waiting for their retirement period to begin at 55 so they can start receiving pension funds.

Wilaiwan sae Tia, vice-chairman of the Thai Labour Solidarity Committee, said she disagreed with proposals to extend the retirement age of private sector employees as it would dent the hopes of workers who expect a lump sum upon retirement at the age of 55.

The Social Security Office (SSO) earlier insisted it had no authority to extend the retirement age of private sector employees from 55 years to 60 years.

SSO deputy secretary-general Arak Prommanee, also an SSO spokesman, said it was a matter for private employers and employees to settle between themselves. If employers want to hire workers until 60, the workers could continue contributing to the fund until that age.

The office estimates there will be about 5,000 social security subscribers who are entitled to receive 90 million baht million in pensions from the SSO next year when the pension fund begins to be paid out. The pension will be worth up to 3,000 baht a month.

There are concerns about a lack of liquidity for the fund when payments begin next year. The SSO began collecting money from subscribers in 1999, when the pension fund was first established.

Yongyuth Chalaemwong, of the Thailand Development Research Institute, suggested the 2010 Social Security Act be amended to extend the pension benefit age from 55 to 60 and taxes be reduced for fund contributors over the age of 55.

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