PUBLISHED: 30 Dec 2024 at 04: 30
The Labour Ministry is urging the government to increase its contribution to the Social Security Fund ( SSF ) from 2. 75 % to 5 %, in line with nations with advanced social security programs.
Phiphat Ratchakitprakarn, the secretary of labor, reported meeting with three SSF investment subcommittee members on Wednesday.
They were the risk management committees, the committee on other asset investment advice, and the subcommittee on investment administration.
Ministry leaders who attended the meeting included Aree Krainara, secretary to the Labour Minister, and Marasri Jairangsee, secretary-general of the Social Security Office.
During the conference, he suggested enhancing the efficiency of SSF’s opportunities.
He proposed raising the government’s contribution rate from the current 2.75 % to 5 %, matching the rates of employees and employers.
According to him, this adjusting aims to generate more investment funds in accordance with the standards of nations like Sweden and Estonia.
He added that he also suggested raising the wage cap to determine contributions in order to maintain the fund’s ability to give better benefits over the long term and its long-term viability.
Since 1991, the sky has been fixed at 15, 000 ringgit, which no longer aligns with the current economic conditions, he said.
Thus, the Labour Ministry will raise the roof in three levels, he said.
The roof will be revised to 17, 500 ringgit from 2026 to 2028, to 20, 000 ringgit between 2029 and 2031 and to 23, 000 ringgit from 2032 forward, he said.
Ms Marasri said benefits tied to the salary roof, such as money alternative, sickness, disability, unemployment, maternity left allowances, death benefits and retirement pensions, have been limited for individuals earning more than 15, 000 baht per month due to the constant ceiling.
Therefore, she said, it is suitable to raise the income cap when determining contributions to ensure that fund members receive better benefits that are more in line with the current economic climate.
Additionally, Mr. Phiphat said he also suggested that employees in some professions become given the option of raising their retirement years beyond 55.
This may enable people to maintain their jobs and benefit from the firm’s long-term purchase returns.
In contrast, he said he recommended broadening the firm’s opportunities by increasing profile exposure to riskier assets, foreign assets and other investments.
A special focus was placed on low-cost, developed score resources to maximise profits.
He emphasized that all assets must be made in accordance with international standards and foster respect among stakeholders, while highlighting the importance of workforce development and incentives as key to achieving solid bank efficiency.