Thai labour coalition to rally against CARE pension formula
Thailand’s labour coalition will petition the prime minister on July 21, warning that the CARE pension formula could reduce benefits for workers insured under Section 33.
- The Thai Labour Solidarity Confederation (TLSC) is organizing a rally in Bangkok to protest the government's proposed CARE pension formula.
- The coalition argues the new formula could reduce retirement benefits for workers insured under Section 33 of the Social Security Act.
- Protesters claim the government advanced the draft regulation, which was approved in principle by the Cabinet, without adequate consultation with workers.
- The rally's goal is to submit a petition to the prime minister demanding a review of the decision and consultations with labour representatives.
The Thai Labour Solidarity Confederation (TLSC) has called on its member organisations, labour leaders and trade unions nationwide to gather in Bangkok on Tuesday (July 21) to submit a petition to the prime minister opposing the proposed CARE pension formula.
The confederation opposes the Cabinet’s July 14 decision to approve in principle a draft ministerial regulation changing the way old-age pensions under the Social Security Fund are calculated.
It argues that the new formula could directly affect the benefits and post-retirement quality of life of workers insured under Section 33 of the Social Security Act. It is also calling on the government to review the Cabinet decision and hold consultations with workers.
Labour groups demand consultation
TLSC president Sawit Kaewwan issued a letter inviting labour leaders and trade unions across Thailand to join the campaign against the CARE formula.
The group maintains that labour organisations have repeatedly raised concerns and lodged objections with the relevant agencies. However, it claims that the government has continued to advance the draft regulation without adequate consultation with or participation from workers.
The TLSC is therefore urging affected insured workers and labour representatives to join the petition and call on the prime minister to review the Cabinet decision.
The gathering will take place at 10am on July 21 at the Government Complaint Centre on Phitsanulok Road in Bangkok, opposite Government House.
Sawit described the campaign as an effort to protect workers’ legitimate benefits and safeguard the stability of their retirement income.
Labour Ministry advances CARE formula
The Cabinet approved in principle the draft ministerial regulation on old-age benefit payments on July 14 following a proposal from the Labour Ministry.
The regulation would replace the existing method of calculating Social Security Fund pensions with a system known as the CARE formula.
The ministry argues that the new approach would bring the pension system more closely into line with actuarial principles by more accurately reflecting each insured person’s contributions and contribution period.
It also believes the change would strengthen the Social Security Fund’s long-term financial sustainability as Thailand moves towards becoming a fully aged society.
However, the Cabinet decision has drawn opposition from several labour networks, which fear that some insured people could receive lower pensions than under the current system, particularly those covered by Section 33.
The networks are demanding the full disclosure of the CARE formula, a comprehensive impact assessment and consultations with insured workers from all sectors before the ministerial regulation is issued.
They regard the proposal as a significant change to benefits affecting millions of insured people nationwide.
The Labour Ministry, meanwhile, maintains that the proposal remains at the stage of drafting secondary legislation and will proceed in accordance with the legally required process.
