Opposition politicians expose the hot potato draining the budget abroad. The ‘Labor Council’ believes that the management structure should be shaken up to allow for independent oversight and professional investment. The future of the pension fund is at serious risk, while the medical board raises concerns as its term nears its end. Salaried workers are questioning the value of paying social security contributions each month after ‘Rukchanok Srinok,’ a member of the House of Representatives from Bangkok, from the People’s Party, raised three issues: ‘Why are the social security rights, which require monthly payments, worse than the rights of the gold card or the rights of the National Health Security Office (NHSO) that are free? The second issue is the budget for printing calendars, which amounts to 70 million baht per year, and the third issue is that the committee studying budget management has requested figures for budget reviews over the past five years, but no one in social security knows what has been discussed in the past.
Today, ‘Boonsong Thapchaiyut,’ the Permanent Secretary of the Ministry of Labor, responded that he does not feel burdened by the daily release of information attacking the operations of the Social Security Office, including issues of bid rigging or inappropriate spending on overseas study trips. The project to transition the social security system from a mainframe computer to a web application, valued at 850 million baht, was conducted according to procurement regulations with a proper oversight committee. If there are delays in delivering the work, there must be penalties; adjustments cannot be made. He confirmed that all procurement and various expenditures, including overseas study trips, are conducted in accordance with the regulations set by law, and if there is to be an investigation, he is ready to provide clarification.
In the past, questions have been raised about the social security fund regarding the value of healthcare and future liquidity, as the number of elderly workers in Thailand increases. The news team inquired with ‘Manat Kosol,’ the Chairman of the Labor Development Organization Council of Thailand and the Chairman of the Social Security Network for Workers, who provided information that there have been demands for benefits, and the rights have been satisfactorily increased. However, the concerning issue is the investment in high-risk funds, which has led to losses amounting to tens of billions.
Regarding concerns about increasing the payment ceiling based on salary rates, it is set at 5%, with contributions increasing according to salary. For those who pay higher insurance premiums, such as a salary of 20,000 baht, the deduction has changed from 750 baht to approximately 1,000 baht based on the salary rate, whereas the previous payment ceiling was 750 baht per month.
A point of confusion for many is the extension of the working age for insured persons, which was originally set at 15 to 60 years. However, as the aging population increases, averaging over 30%, and is expected to continue rising, the eligibility has been extended to 15 to 65 years. Insured persons can continue working after reaching the age of 60 by renewing their contributions under Section 33.
As for concerns that future pensions for the elderly may not be sufficient, the fund for the pension of insured persons currently stands at approximately 2.2 trillion baht, with an annual contribution of 200 billion baht. If there are more elderly workers, this fund will be utilized, but it must be managed effectively; otherwise, problems may arise.
Regarding the transparency of the fund, insured persons can come in to check and ensure fairness for both officials and insured individuals. There should be an investigation into any areas of concern.
What I would like to see is for social security to develop into a bank for workers. Having this would help reduce transaction costs through regular banks, and insured persons would have the right to borrow money, deposit, and save, using their old-age pension as collateral.
If we categorize the money that insured persons pay to social security each month, ‘Manat’ elaborated that it can be divided into three major funds as follows:
- Illness, disability, death, and childbirth, which are collected from employees and employers at a rate of 1.5%, with the government contributing a portion. Currently, there is still liquidity.
- Old-age pension, which is collected from employees and employers at a rate of 3%. This is a large fund saved for use during retirement.
- Unemployment, which is collected from employees and employers at a rate of 0.50%. This fund currently has good liquidity. If employment increases in the future, liquidity will improve even more, but if the workforce decreases, it will be affected.
Read more on https://www.thairath.co.th/scoop/theissue/2843053
