Photo: Chanakarn Laosarakham

With Thailand’s elderly population on the rise, a new pension scheme is drawing widespread criticism for taking away some oldsters’ pension rights.

On 11 August 2023, the Royal Gazette website published the Ministry of Interior's new regulation regarding pension payments for the elderly.  It was signed by caretaker Interior Minister Gen Anupong Paochinda.

Previously, monthly pensions for the elderly were based upon age. People aged 60-69 received 600 baht.  Those aged 70-79 received 700 baht.   Those aged 80-89 received 800 baht and anyone aged 90 or above received 1,000 baht.

The new regulation deprives some elderly of their monthly pensions, however.    It limits payment to those without income or insufficient income to support their livelihood, ending the universal scheme of pensions for the elderly.  It applies to those turning sixty who have yet to receive welfare from a government agency.

Now eligible elderly will all receive 600 baht per month through a state welfare card, commonly known as a card for the poor, a programme providing subsidies for those with annual incomes below 100,000 baht. 

Thailand has been categorised as an ageing society since 2005. According to the National Statistical Office, the number of elderly in Thailand was over 12 million, 19.6% of the total population, in 2021.

Rachada Dhanadirek, a government spokesperson, stated that the budget for the pension increases every year due to the rising number of the elderly. To reduce fiscal burden and create sustainable management in the long run, the new pension scheme will focus on a specific group with greater needs.

The issue has stirred public criticism, with many people arguing that it is the government’s responsibility to help secure the financial future of all elderly rather than reducing their monthly allowance by implementing a targeted approach.

Sia Jampathong, a Move Forward Party (MFP) MP and labour activist, expressed concern that under the new regulations, there will be 6 million elderly who do not receive an allowance. He added that the state welfare card database is flawed since 46% of the poor do not have a card. Noting that  people over 60 should be equally eligible for pension, he remarked that people should not have to prove their poverty.

MP Viroj Lakkana-adisorn further explained that if the new pension payment was based on a state welfare card, which has 11 million elderly holders, only 5 million would receive the pension.

He said that a study conducted by the MFP’s Think Forward Center shows that 78% of cardholders do not actually meet the poverty criteria. He said it is not appropriate to use the database to determine the pension payment as it will prevent the impoverished from receiving pensions. He believes that in the end, some people may manipulate the system to gain the benefits from a pension they are ineligible for.

Expressing her concern over the monthly allowance, Wantha Wilailak, 65, a maid with the Network for Thai Domestic Workers said that with costs of living getting higher, 100 baht was not enough for food each day.

“It is not enough, particularly for those who are unemployed or the elderly residing in the countryside. They have no income,” said Wantha.

Wantha urges the government to reconsider the new pension scheme, saying that a universal pension of 3,000 Baht per month would be enough to support livelihoods and that 600 baht was not. She also disagrees with giving the allowance to a target group of poor, reiterating that everyone is entitled to receive a pension.

Nitirat Sabsomboon, We Fair Network’s representative, stated that he does not agree with the new pension scheme that forces people to prove their poverty to receive the allowance. For him, a welfare program that targets a specific group would create a patronage system for those who are close to local politicians, causing the real target group to be excluded.

“If we truly want the impoverished to have access, it needs to be a universal scheme. All the poor, the wealthy, and the middle class pay taxes. They are entitled to receive a pension. They can also choose to waive those rights if they do not want them. But the targeted approach has already failed, as seen with state welfare cards,” remarked Nitirat.

In terms of economic stimulus, He noted that a cash giveaway policy might help, but not solve the structural problem, suggesting that the government should invest in a pension, which will help solve poverty and the inequality issue, enabling more people to access state welfare.

Sustarum Thammaboosadee from Thammasat University noted that the new pension scheme, which implements a targeted approach, would facilitate corruption when compared to a universal scheme.

 “Universal pensions for the elderly is a significant policy that could change people’s lives. Generally, impoverished people are unable to access welfare and even may not be able to verify their poverty. A universal scheme can each the most impoverished group more effectively,” said Sustarum.