Seventy per cent of Thai labourers might not be able to retire if the government does not implement measures to assist them, according to a recent study by Chulalongkorn University (CU).
Some 12 million labourers joining the retirement fund system would get a pension when they reached 55 or 60 years of age, said the study presented at a seminar by the National Economic and Social Advisory Council (NESAC) and CU Academic Service Centre.
However some 22 million labourers, or 70 per cent of the overall 35 million labourers aged between 16 to 60, have not joined retirement funds promoted by the state. About 16 million of these workers are farmers while the rest are working at odd jobs with low incomes such as taxi drivers or construction workers.
If left to save money for their old age, these low-paid and less-educated labourers would have great difficulty in later life and could become a burden on the country. As a result, NESAC has asked CU Academic Service Centre to do the study and suggest how the government could help these people.
Assoc Prof Watcharaporn Suriyapiwat from CU's Faculty of Commerce and Accountancy, Association of Provident Fund secretary-general Manochai Sudjit and Preecha Sawatpeera from the ITA Institute carried out the study.
They urged the government to set up a savings fund for retirement for these labourers, whose low income, job nature and social aspect discourage their access to existing retirement funds.
This fund would sell them saving units at Bt100 each. During the first five years the government would contribute 30 per cent to every saving units bought, with a limit of up to 12 saving units per month or 60 units per year. Thus the government's contribution would be up to Bt1,800 per head per year, as an incentive to get them into saving money for retirement.
After the first five years until the subscriber became 60 years old, the government would continue to contribute at 10 per cent of the newly bought units. This proposed fund would be managed by professionals to yield profits in the long term to support retirees' needs.
