The new ministerial draft regulation using the “CARE” formula has been approved by the Cabinet. It calculates old-age pensions under Social Security aiming to reduce inequality and ensure fairness for all groups. It will take effect 180 days after publication in the Royal Gazette.
On 14 July 2026, Second Lieutenant Phatdarasmi Thongsaluaykorn, Deputy Spokesperson of the Prime Minister’s Office, announced the Cabinet meeting results. The Cabinet resolved to approve the principle of the draft ministerial regulation on old-age benefits payment, proposed by the Ministry of Labor, to improve the calculation structure of Social Security old-age pensions for greater fairness and better alignment with insured persons’ contribution payments.
Currently, old-age pension calculations are based on the average wage of the last 60 months, which is unfair to insured persons whose wages decrease toward the end of their career or those who switch to insured status under Section 39. Therefore, the Ministry of Labor proposed adjusting the pension calculation method. The new method is the “CARE” formula (Career Average Revalued Earnings). This formula revalues the monthly wages used as the basis for insured persons’ contribution payments to present value, then averages them over the entire contribution period. This makes pensions more fairly reflect lifetime contributions.
For insured persons already receiving old-age pensions, their benefits will not decrease. For those who become entitled to pensions within the first five years after the regulation takes effect, if the old formula results in higher benefits, the Social Security Office will compensate the difference to prevent any negative impact. This ensures a smooth transition and fairness for all insured groups.
The Deputy Government Spokesperson added that the ministerial regulation will come into force 180 days after its announcement in the Royal Gazette. This period allows insured persons to prepare retirement plans and for the Social Security Office to better inform them. Additionally, economic agencies have proposed that the Ministry of Labor develop a plan to manage the Social Security Fund’s liquidity and financial stability long-term, alongside controlling unnecessary expenditures to ensure the state's fiscal sustainability.