Thailand plans to raise retirement age to 65 amid ageing population

The Thai government plans to raise the civil service retirement age from 60 to 65 to address challenges posed by the country’s ageing population.

Deputy Prime Minister Borwornsak Uwano has directed the Office of the Civil Service Commission (OCSC), the Comptroller General’s Department, the Budget Bureau and the Government Pension Fund to conduct a feasibility study on extending the retirement age by five years.

“At this stage, the study only focuses on extending the retirement age for civil servants, not other branches such as the police,” he said, as quoted by The Star. 

Borwornsak added that the study will evaluate the country’s demographic shift as well as the potential long-term impact on public finances and administrative management.

Executive posts excluded 

The government assured that the proposed plan will apply only to civil servants and will not affect executive positions or disrupt promotion opportunities for ministry employees.

Government spokesperson Siripong Angkasakulkiat clarified that the plan would apply to technical and specialist positions rather than management-level posts, to prevent disruptions and allow younger officials to take up leadership roles.

“Officials who continue working beyond 60 will have to sign an agreement acknowledging that their salary will remain fixed throughout the extended employment period,” he said. 

Siripong noted that this move will guarantee fairness between those who remain in the service and new officials to the system. 

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Declining birth rate, fertility rate fuels the plan 

The plan has resurfaced as Thailand faces a declining birth rate and total fertility rate, underscoring a serious demographic challenge.

In 2024, Thailand registered only 462,240 births, down from 519,000 in 2023, marking the first time in 75 years that the country recorded fewer than half a million births a year, Thaiger News reported.

With this figure, Thailand now ranks among the top three countries experiencing the sharpest decline in birth rates, with an 81% drop over the past 74 years.

Meanwhile, the country’s total fertility rate has fallen to 1.0 – lower than Japan’s and comparable to South Korea and Singapore.

Many Thai women have no plans to start a family

A nationwide survey conducted by the Thai Health Department in September showed that the number of Thai women who have no plans to build a family continues to surge.

According to the survey, only 63% of women aged 19 to 49 desire to have children, further fuelling concerns about the country’s falling birth rate.

Dr. Bunyarit Sukrat, Director of the Reproductive Health Bureau, attributed this trend to changing perceptions of family and shifting priorities.

“The figures show a shift in mindset and priorities among Thai women. If we want to support family growth, we must first support the women who make it possible,” she said.

Labour shortage intensifies

With declining birth and fertility rates, as well as changing social attitudes, Thailand now faces a growing labour shortage, forcing the country to rely heavily on foreign workers.

Government data showed that the labour force has been steadily decreasing over the past few years, falling to 40.25 million in the last quarter of 2023.

A recent report by the International Labour Organisation forecasted that Thailand will face a shortage of more than 250,000 care economy workers by 2037.

This projection highlights the need for increased investment in community-level care systems and the creation of more jobs in the care economy.

Ageing society 

Thailand is now becoming an ultra-aged society, as the number of people aged over 60 outnumbers those under 15, according to a recent report by the Geo-Informatics and Space Technology Development Agency.

The agency noted that the number of Thais aged 60 or older has risen to 13.6 million, while the population of children under 15 has declined to 9.5 million.

The country officially entered a complete ageing society in 2021, when people aged 60 and above made up 20% of the total population, a figure expected to increase further in the next decade.

Businesses sceptical over raising retirement age 

However, the business sector has expressed scepticism over the government’s plan, citing financial burdens and the need to nurture younger workers.  

Altimate Packaging Co. managing director Isares Rattanadilok Na Phuket said that raising the retirement age will add financial strain for entrepreneurs already struggling with the weak economy.

He added that while some firms may employ 60-year-old workers, such decisions are usually made on a case-by-case basis,  the Bangkok Post reported.

Given this situation, the Thai government must now strike a balance between addressing the country’s labour shortfall and responding to concerns from other sectors of society.

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