Two recent amendments to the Labour Protection Act in Thailand will affect companies’ retirement practices. One amendment provides for an increase in the severance payment for employees with more than 20 years of service. The other amendment established that an employee is entitled to retirement from age 60 and clarified that the severance payment is payable on retirement. Milliman’s Danny Quant and Mark Whatley provide perspective in this article.
This Milliman study, authored by Danny Quant, Joanne Gyte, and Simon Herborn, covers the 50 companies featured in the SET 50 index as of 31 December 2556 Buddhist Era (31 December A.D. 2013). The main aim of the study is to educate and create awareness about the state of employer-sponsored long-term employee benefits programs and foster a healthy dialogue among policy builders, employers, employees, and the general public about the future of such plans in Thailand.