Thailand's latest proposals to shore up its social security system for an aging workforce appears to have broader support, and would increase social security benefits and contributions.

Thailand has introduced a compulsory retirement age designed to provide those retiring with a severance payment following amendments to the Labor Protection Act.

Thailand's cabinet has approved a draft ministerial regulation that would fundamentally transform how old-age pension and gratuity benefits are calculated under the Social Security Fund. The reform introduces a career average revalued earnings model to replace the current 60-month average salary calculation, affecting both current recipients and future beneficiaries. The regulation includes transitional protections and expanded gratuity entitlements, with implementation expected within eight to ten months f

The Labor Protection Act of 1998, Section 118, (LPA) requires all employers in Thailand to pay severance to employees who are "terminated" by the employer without legal cause (as described in LPA Section 119).

The Thai Cabinet has endorsed a proposal to amend the Labour Protection Act, setting a statutory retirement age for the first time and entitling retirees to statutory severance pay.

Legally, employers in Thailand must pay a severance to their employees when they retire. But awareness of this still relatively-new stipulation is low, putting companies at risk of penalties, including jail time.

Thailand has approved changes to its social security contribution framework effective 1 January 2026. These changes introduce a higher wage ceiling for calculating monthly social security contributions...

As Thailand transitions into an aged society, retirement policy and workplace protections for older workers have come into sharper focus.

Many companies have moved to Southeast Asia to benefit from the advantages of this vibrant and diverse market. The region is already a manufacturing hub for a multitude of industries—computer and...

Labour and Employment Comparative Guide for the jurisdiction of Thailand, check out our comparative guides section to compare across multiple countries