Thailand – a country with 72 million people but still no supplementary National Pension Fund. However a new National Welfare Fund starts in October 2025, and employers should prepare for this.
✅ Currently, employees receive a state pension and mandatory lump sum / gratuity payment upon retirement. Civil servants also receive Government Pension Fund benefits. Private sector employers can and do provide retirement savings plans, such as provident funds, on a voluntary basis.
❌ However many of Thailand’s 40 million workers still do not have a private or company pension arrangement. Millions of people also work informally and are not covered by social security.
🇹🇭 The government is starting the National Welfare Fund on 1 October 2025. It will provide employees and their families with protection upon loss of employment or death. Contributions will be small – starting at 0.25% of pay and reaching 0.5% by 2030. However companies providing pension plans or comparable termination benefits may be exempt.
📜 In addition, back in 2008, the government announced plans to introduce a mandatory National Pension Fund (NPF). Thirteen years later, in 2021, it was announced this may be introduced in future years. Total employer and employee contributions would be 3% of pay, and then climb up to 10% after 10 years – not too dissimilar from the Australian model.
📰 News on the NPF has gone quiet recently, but, given the high potential cost, organisations such as the ILO have recommended that it is postponed and implemented as part of a wider systematic national pension reform. This could also ensure state pensions are adequate and affordable (see link below).
So, as in other countries, major pension reforms are complex and take time; but steps are being taken to provide some minimum levels of protection for workers.