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WEDNESDAY, November 29, 2023

Cabinet okays amendments to Social Security rules on pensions

Cabinet okays amendments to Social Security rules on pensions
TUESDAY, May 10, 2022

The Cabinet on Tuesday gave an initial nod to the Labour Ministry’s plan to amend the Social Security Act so retirees can choose between getting their pension in a lump sum or on a monthly basis.

Labour Minister Suchart Chomklin said the bill drafted by his ministry also seeks to allow beneficiaries to withdraw some of their pension in advance before retirement.

The amendment will also allow them to use their savings with the Social Security Fund as a guarantee for obtaining a loan from a commercial bank, he added.

Suchart said the Labour Ministry has come up with this proposal because certain rules of the fund do not correspond to the current situation, where workers and employees are suffering from financial problems due to the Covid-19 pandemic.

The bill also seeks to extend the coverage period for people insured under Section 33, in which employers also contribute to the Social Security Fund.

The bill does not specify exactly at what age the coverage should stop, and will wait for the issue to be decided upon in a House debate.

Suchart said apart from allowing retirees to choose between receiving the pension in full or on a monthly basis, the bill also aims to extend help to beneficiaries by letting them withdraw their savings in advance or using it as a guarantee to obtain a loan.

The bill also aims to extend the compensation for women on maternity leave from 90 days to 98 days, as well as increase the compensation of workers who have been disabled on the job to 70 per cent of their salary from 50 per cent.