Social Security has sent out written notifications regarding pension funds to everyone for the first time last month, marking the first such announcement since its establishment. Here’s a brief summary:

There are two types: Lump Sum and Monthly Pension.

1. Anyone who has contributed since December 31, 1998, will receive a pension. It is emphasized that everyone will receive it.

2. Whether one receives a lump sum or a monthly pension depends on the number of contribution periods; it cannot be chosen.

3. Those who have contributed for 1-179 periods will receive a lump sum (a one-time payment upon retirement, each person for themselves).

4. Those who have contributed for 180 periods or more will receive a monthly pension (a lifelong monthly payment).

The 180 periods are counted from the month contributions are made, counting as one period regardless of continuity. Missing some months is acceptable; they can be combined when calculating for retirement.

To receive the pension, two conditions must be met: 1. Must have left the job, and 2. Must be over 55 years old.

If you leave your job but are under 55, can you withdraw? No. If you are over 55 but still working, can you withdraw? No.

If you receive a pension, how much will it be per month?

Assuming the insured person earns an average salary of 15,000 THB and retires at age 60 after contributing for a total of 35 years, how much will their pension be? And if they pass away within 5 years after receiving the pension, what will happen?

1. The insured will receive a pension calculated as follows:

= For the first 15 years, the pension rate is 20%.

= For the next 20 years, the pension rate is (1.5% (for each year) × 20 years) = 30%.

Total pension rate for 35 years = 20% + 30% = 50%.

The insured will receive a monthly pension

= 50% of 15,000 THB

= 7,500 THB/month for life.

2. If the insured person who has received the pension passes away within 5 years, their eligible heirs will receive a lump sum of 10 times the monthly pension = 7,500 THB × 10 = 75,000 THB.

Example: If the insured person above is 85 years old and has been receiving a pension since age 60.

1. How much has this insured person contributed to the fund?

750 THB multiplied by 12 (months) multiplied by 35 years equals a total of 315,000 THB.

2. How much has this person received from the pension fund?

7,500 THB multiplied by 12 (months) multiplied by 25 years equals 2,250,000 THB (two million two hundred fifty thousand THB).

3. If this person lives to be 90 years old, they will have received a total of 2,700,000 THB (two million seven hundred thousand THB).

4. If this person lives only to 67 years old, they will have received a total of 630,000 THB.

5. If this person lives only to 63 years old, they will receive 270,000 THB + 75,000 THB = a total of 345,000 THB (pension + inherited lump sum).

6. If this person dies before being eligible to receive the pension, a lump sum will be paid to their legal heirs along with dividends.

This is just one of the seven benefits of the social security fund. There are also six other cases, such as medical expenses, illness, dental care, prosthetics, childbirth expenses, maternity leave, child allowances, death benefits, disability benefits, and unemployment benefits. Where does the money for these benefits come from? According to the law, the 750 + 750 will be divided to pay for these benefits, especially the pension, which is allocated at (3%) 450 + 450 per month, meaning we have a pension fund of 900 THB/month and 10,800 THB/year.

The amounts mentioned in the letter are for those receiving pension funds only.

Average salary is calculated as the total salary of the last 60 months before retirement (the last 5 years of salary) divided by 60.