Providing elderly individuals with a second opportunity
Unraveling the Graying of Thailand: A Call for Action
As Thailand's population ages, a demographic crisis looms. With one in five Thais currently over 60, the number of senior citizens is set to surge, accounting for an alarming 27% of the population in the next decade. However, the government's response remains lackluster, according to Nonarit Bisonyabut, a senior research fellow at the Thailand Development and Research Institute.
Typically, senior citizens in Thailand rely on family support post-retirement. But, decreasing birth rates combined with longer lifespans mean many will find themselves supporting not only their parents, but also their grandparents. The number of elderly individuals without familial support is on the rise, exacerbating the problem.
State welfare systems may not be able to keep up, with the social security fund's pension scheme already shrinking and old-age allowances requiring an enormous budget. "We're growing older before we are rich," said Mr. Bisonyabut.
In developed countries, people often work until the age of 65 or beyond before retiring. In developing countries like Thailand, employment tends to end at 60. However, early retirement is common in Thailand due to policies allowing individuals to collect their pension and benefits as early as 55. This encourages many to retire early and collect lump sums, despite being capable of working.
The Elderly Workforce: A Hidden Asset
Currently, there are 13 million elderly individuals in the workforce, but most are employed in the agricultural sector, offering low pay andunstable income. To address this issue, the Ministry of Social Development and Human Security has initiated a scheme to encourage the private sector to hire senior citizens. Although 200,000 older individuals have expressed interest in returning to work, only about 6,000 positions are currently available.
"We don't need to worry about workers in the public sector, which has a retirement extension scheme," said Mr. Bisonyabut. "We need to worry about private [sector] employees or informal workers who are forced by several factors to stop working."
The private sector, he claims, has yet to fully support elders who wish to continue working, with many employers treating employees as expendable.
Highlighting a potential solution, Mr. Bisonyabut praised Singapore's "re-employment" policy, in which businesses are encouraged to retain elderly employees until at least 60 or 65 years old or offered alternative roles with lower pay.
Navigating Legal Barriers
Tanit Sorat, vice chairman of the Employers' Confederation of Thai Trade and Industry, calls for flexible employment terms and tax incentives to encourage the hiring of elderly individuals. A proposal has been made to the government, but it remains on hold.
Under the proposal, the retirement age for the private sector is set at 65, with an option for part-time work up to 70. Tanit notes that retirees in the government sector have little interest in returning to work, but studies show that those who collect lump sums often run out of money within three years.
Thailand faces a serious labor shortage and relies on 3.3 million foreign workers, most of whom fill low-skilled roles. However, there is a pressing demand for semi-skilled Thai workers. Tanit suggests requiring businesses to hire a set number of senior workers, similar to existing regulations for hiring individuals with disabilities.
Ignored Opportunities and Missed Incentives
Despite the challenges, there is a growing number of companies hiring retirees to fill expertise gaps. Robert Walters' recent report found that demands for retirees to work in Thailand are rising, driven by the vertices of their experience and preference for part-time or flexible jobs. Many businesses are considering extending the retirement age from 60 to 65 to retain skilled employees.
The Ministry of Labour has supported senior employment since 2022, with in-demand jobs for elderly employees including housekeeping and guarding private property. A 2022 survey found that 76% of seniors prefer flexible work arrangements.
The Pheu Thai Party backs calls for post-retirement employment, emphasisizing the need to identify appropriate roles for retirees. Krissada Tantherdthit, a member of Pheu Thai's economic team, said expanding post-retirement employment is part of the party's platform, integrating healthcare, welfare, and job creation for the elderly.
Sanga Ruangwattanakul, president of the Khao San Road Business Association, supports the policy, but emphasizes the need for substantial incentives for employers, such as tax breaks or subsidies, to encourage the hiring of seniors. Without these measures, he warns, many companies may continue to violate labor laws by failing to provide required notice before termination or offering minimum pay.
In conclusion, Thailand stands at a critical juncture regarding its aging population. Urgent steps are required to ensure the welfare of its senior citizens, promote senior employment, and create a more inclusive and supportive environment for elderly workers. With careful planning, innovative policies, and strong incentives, Thailand can harness the valuable potential of its older population, fostering economic growth and social well-being.
- As the elderly population in Thailand continues to grow, highlighting the potential of the elderly workforce as a hidden asset is crucial.
- The Ministry of Social Development and Human Security has initiated a scheme to encourage the private sector to hire senior citizens, but the number of available positions remains low compared to the high number of elderly individuals interested in returning to work.
- Tanit Sorat, of the Employers' Confederation of Thai Trade and Industry, has proposed flexible employment terms and tax incentives to encourage hiring elderly individuals, but this proposal remains on hold.
- Singapore's "re-employment" policy, which encourages businesses to retain elderly employees, is praised as a potential solution by senior research fellow, Nonarit Bisonyabut.
- The Pheu Thai Party supports calls for post-retirement employment, emphasizing the need for identifying appropriate roles for retirees and integrating healthcare, welfare, and job creation for the elderly.
- Without substantial incentives for employers, such as tax breaks or subsidies, many companies may continue to violate labor laws, failing to provide required notice before termination or offering minimum pay to elderly workers.
