In general, employers in the private sector in Thailand do not have a fixed retirement age for employees (except for some companies), especially small and medium-sized enterprises (SMEs) which typically do not have employment contracts or set retirement ages, allowing employees to work continuously. If someone can't cope, they usually resign on their own (to avoid paying compensation). Most people retire around 45-55 years old, depending on the profession and working conditions (such as jobs that require good eyesight, or work in hot environments or with chemicals, which often result in leaving work without compensation). Meanwhile, medium and large businesses usually have employment contracts, and employees are generally employed until the age of 55 (according to the age for social security entitlement after completing 180 months of social security contributions

In developed countries, setting or extending the retirement age is a significant issue because it is tied to the age at which individuals are eligible for retirement benefits under the social security system. The main reason for this is the increasing proportion of elderly population in the country, resulting in more elderly people eligible for retirement benefits each time. Moreover, not only is the number of elderly people increasing, but each person also tends to live longer (receiving retirement benefits and spending money) than before. This situation leads to insufficient funds in the social security system, known as instability. Therefore, the solution is to postpone the age at which individuals are eligible for retirement benefits or retire.

Furthermore, another important reason to discuss retirement age is the welfare of workers who stop working without a definite retirement age, especially in cases of termination without compensation, which is against the law. According to the Labor Protection Act B.E. 2541, employers are required to provide compensation as stipulated by law.

The government, in its efforts to eliminate exploitation concerning retirement or termination and to protect employee rights more strictly, issued the Labor Protection Act No. 6 B.E. 2560, announced in the Royal Gazette on August 31, 2017. Article 6 of this act added the following provision as Article 118/1 of the Labor Protection Act B.E. 

a. Retirement age as agreed upon by the employer and employee, or as specified by the employer, shall be considered termination of employment.

b. In cases where there is no agreement or specification of retirement age, or if the agreed or specified retirement age exceeds sixty years, employees who are sixty years old or older have the right to declare their intention to retire by notifying the employer, which shall take effect thirty days after the notification. The employer shall then provide compensation to the retiring employee.

What to do when an employee retires?

Let's first understand that 'retirement age is considered one form of termination' according to labor protection laws, Article 118/1, concerning retirement age, work termination, and compensation. 

         1. When retirement age is agreed upon by the employer and employee, or as specified by the employer, it shall be considered termination of employment under Article 118, paragraph two.

          2.In cases where there is no agreement or specification of retirement age, or if the agreed or specified retirement age exceeds sixty years, employees who are sixty years old or older have the right to declare their intention to retire. This declaration must be made to the employer and shall take effect thirty days after the notification. The employer shall then provide compensation to the retiring employee as stipulated in Article 118, paragraph one.

In summary, 

         - In cases where the employer specifies retirement age 'before reaching the age of 60,' it shall be considered retirement according to the regulations concerning employment, employment contracts, or agreements between the employer and the employee.

        -In cases where retirement age is specified as 'beyond the age of 60 or not specified,' employees have the right to request retirement when they reach the age of 60 or older. This request shall take effect 30 days after notification and the employer shall provide compensation to the retiring employee.

In terms of compensation that employees are entitled to receive after expressing their intention to retire, according to Section 118, first paragraph of the Labor Protection Act, employees have the right to receive compensation as follows 

        1. Employees who have worked for at least 120 days but less than 1 year are entitled to receive compensation for 30 days or 1 month.

         2.If an employee has worked for 1 year but less than 3 years, they are entitled to receive compensation for 90 days or 3 months.

         3.Employees who have worked for 3 years but less than 6 years will receive compensation for 180 days or 6 months.

         4.For employees who have worked for 6 years but less than 10 years, they will receive compensation for 240 days or 8 months.

         5.If an employee has worked for 10 years but less than 20 years, they will receive compensation for 300 days or 10 months.

         6.Employees who have worked for 20 years or more will receive compensation for 400 days or 13.33 months.

Source: : https://www.dst.co.th

Source: : https://tdri.or.th