There are various pension schemes in Thailand – state pension in form of old-age allowance, DB/DC pension scheme for civil servants, mandatory Social Security Fund and voluntary Provident Fund for formal workers and National Saving Fund for informal workers. Individual pension saving is also promoted with tax incentive.
Thailand’s pension system is rather complex as it targets different groups of population. Old-age allowance is a state pension welfare for all populations except civil servants. There are DB/DC pension schemes provided to the civil servants. For the formal workers, enrollment to the Social Security Fund is compulsory while participation in the provident fund is on a voluntary basis. All workers are eligible for lump sum statutory severance pay upon retirement. National Saving Fund is a DC pension fund specifically promoted to the low-income informal sector and the unemployed. The government also encourages individuals to save for retirement through Retirement Mutual Fund or pension insurance by providing tax benefits.