FRIDAY, March 29, 2024
nationthailand

Government to kick in more retirement contribution

Government to kick in more retirement contribution

The government plans to increase its contribution to the National Savings Fund in order to provide incentives for those who want to save money for retirement, Somchai Sujjapongse, permanent secretary of the Finance Ministry, said on Thursday.

Currently, the majority of NSF members are farmers and the self-employed not covered by the social security law.
Under existing law, government contributions range from 50 per cent to 100 per cent of one’s savings depending on what age group the citizen matches.
Under the proposed law, the government contribution would be 100 per cent for all age groups, said Somchai.
However, the government contribution will not exceed Bt1,500 per year per participant.
The move is expected to cause annual budget spending to increase to Bt1.5 billion from Bt600 million currently.
Under the law now, people between 15 and 30 years old who register with the NSF would receive matching fund from the government of up to 50 per cent of their savings, up to a limit of Bt600 per year for each saver. This group accounts for only 2 per cent of the 500,000 fund members. The government now offers annual matching of savings made by those between 30 and 50 years old up to a limit of Bt960, or 80 per cent of savings.
And the government now contributes up to Bt1,200 ,or 100 per cent of savings made by the elderly aged 50 to 60 years old.

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