Savings fund for off-system workers
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Two years after the legal framework was established on May 8, 2012, the Finance Ministry is ready to proceed with the National Savings Fund, with Bt1 billion initially to be contributed by the state, for workers who are currently not part of the official
This is to promote personal savings for retirement of all Thai workers in every sector of the economy.
The ministry will also set up an office and computer system and an executive team to manage the National Savings Fund before the end of the year, Fiscal Policy Office (FPO) director-general Krisada Chinavicharana said.
Members of state banks’ savings funds (for example the more than a million members of the Bank for Agriculture and Agricultural Cooperatives fund), various community savings funds and the Social Security Fund will be invited to join the National Savings Fund to ensure its financial viability, he said.
In the past, the Finance Ministry has not see a pressing need for this, as Article 40 of the Social Security law allows unofficial workers to join the Social Security savings fund. However, while the current military regime is in charge, Finance Minister Sommai Phasee wants the FPO to set up the National Savings Fund, Krisada said.
The FPO would be allowed to use the branch offices of state banks nationwide (such as Government Savings Bank and the BAAC) to draw in applicants and to facilitate payments. Since all state banks are willing to be part of this scheme, the National Savings Fund should prove to be financially feasible, he said.
The terms and conditions for applicants of the National Savings Fund are as follows.
Participants must be workers outside the formal employment system and aged between 15 and 60 years, and must contribute a minimum of Bt50 per month to the fund, but not exceeding Bt13,200 a year (or not more than Bt1,100 per cent month).
The state will contribute a portion in relation to the worker’s accumulated contribution.
For example, for a worker with age 15-30 years, the state will contribute 50 per cent of the worker’s accumulated fund, but not more than Bt600 and year, and for those over 50, it will contribute 100 per cent of the worker’s accumulated fund, but not more than Bt1,200 per year.
Workers aged 60 and up are entitled to receive a pension if their accumulated fund and benefits are within the specified range.
