July 14, 2026 – Mr. Julapun Amornvivat, Minister of Labour, announced that the Cabinet meeting held today approved the draft Ministerial Regulation on the Payment of Old-Age Benefits (B.E. ….), as proposed by the Ministry of Labour. This regulation amends the criteria for calculating old-age pension and old-age lump sum payments for insured persons, to ensure that benefits are received fairly and in a manner consistent with contributions made throughout one’s working life, whilst strengthening the long-term sustainability of the Social Security Fund.
Mr. Julapun stated that the draft Ministerial Regulation is set to take effect 180 days after its publication in the Royal Gazette. Its key substance is the change in the method of calculating old-age pension from the existing Final Average Earnings (FAE) formula, which is based on the average wage over the final 60 months, to the Career Average Revalued Earnings (CARE) formula, which is based on the average wage over the entire working life, with past wages being revalued to present value through a Pension Points system, so that the calculation more appropriately and fairly reflects the contributions made by insured persons throughout their careers.
In addition, the criteria for calculating old-age lump sum payments for insured persons who have made contributions for fewer than 180 months have been revised, entitling them to receive a lump sum equal to the total contributions made by both the insured person and the employer, along with returns, even if contributions have been made for fewer than 12 months, so that insured persons receive appropriate benefits.
The Minister of Labour added that the draft Ministerial Regulation includes transitional measures to protect the rights of insured persons. Those currently receiving an old-age pension before the date the law takes effect will receive an increase if the new formula yields a higher pension, effective from the month following the date the law comes into force. However, if the new formula yields a lower pension, they will continue to receive their pension at the original rate. For insured persons who become entitled to a pension within 5 years of the date the law takes effect, if the new formula results in a reduced pension, they will receive a compensatory top-up payment on a pro-rated basis, at 100 per cent in the first year, tapering down to 20 per cent in the fifth year.
“This revision of the criteria will ensure that insured persons under both Section 33 and Section 39 receive a pension calculation that more accurately reflects their contributions over their entire working life — fairer, more balanced, and consistent with the international standards of many countries, particularly OECD member states, whilst also building the long-term sustainability of the Social Security Fund,” Mr. Julapun said.
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Division of Public Relations
Sirachok Kingkaew – Photos
