Pension puzzle: Fake news or lifeline for Thai seniors?

Thailand’s 13 million pensioners are praying their monthly state subsidy – fixed since 2011 despite surging living costs – is about to rise despite rumours and confusion.

Late last year, many seniors were delighted by reports that their monthly payment would rise from 600-1,000 baht to 700-1,250 baht in October this year. Media reported that the Cabinet had approved the government’s plan to upgrade social welfare, including financial support for the elderly.

However, the Department of Older Persons has since branded these reports “fake news” and called on people to stop spreading unfounded rumours of a subsidy hike. Yet the situation remains hazy, as the government’s 1111 Helpline has not ruled out the possibility of a rise.

“There is a plan in place for the hike, and if no budget issue stands in the way, the new rates will become effective from October 1,” a helpline official said on Saturday (July 19).

She added that under the new rates, the state subsidy will rise from 600 to 700 baht for seniors in their 60s, from 700 to 850 baht for those in their 70s, from 800 to 1,000 baht for 80-somethings, and 1,000 to 1,250 baht for those aged 90 and above.

A hike long overdue?

Varawut Silpa-archa, minister for social development and human security, has been pushing for higher state payments for several years, citing the impact of rising living expenses on elderly Thais.

“The subsidy should match rising costs,” he said.

Nearly 20% of Thailand’s 65.9 million people are aged 60 or older, but most have little or no savings. This means they must continue to work into old age just to make ends meet.

The National Retirement Risk Index (NRRI) has revealed that Thais' ability to maintain pre-retirement living standards when they stop working dropped from 56.70 points in 2020 to 49.30 points in 2023, with 100 being the maximum score.

Similarly, a 2022 survey by the Bank of Thailand and the National Statistical Office found that only 16% of Thais have adequate savings to fund a comfortable retirement.

Alarmed by these findings, several non-governmental organisations are calling on the government to introduce a flat subsidy of 3,000 baht per month for all elderly citizens.

State help for the elderly

A monthly state subsidy for the elderly was first introduced in 1992, when Chuan Leekpai’s government began paying poverty-stricken seniors 200 baht per month. It was raised to 300 baht in 1999, then 500 baht in 2006 under the post-coup administration of General Surayud Chulanont. Surayud’s government also allowed well-funded local authorities to grant up to 1,000 baht per month to senior residents.

A major shift came in 2010, when the Elderly Act was amended to expand the subsidy to all elderly Thais – except those already receiving a state pension. Further reform in 2011 introduced the current age-based scale of 600 to 1,000 baht per month.

The government – under pressure from an economic downturn and soaring budget deficit – is now considering shrinking the subsidy to cover only the most needy Thai seniors. Under rules introduced in 2023, the National Committee on Older Persons has the power to set income criteria for eligibility.

At present, every Thai senior receives the monthly payment regardless of other income sources.