Thailand aims to create a new retirement program to support an aging population that will add about 1 million new retirees annually starting in 2023.

Prime Minister Prayuth Chan-Ocha wants to ensure that Thais can receive income upon retirement, government spokeswoman Rachada Dhnadirek said Tuesday, after the cabinet approved in principle a new national retirement plan. The program will be mandatory for all employees who aren’t participating in other retirement plans, she said.

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Thailand’s official retirement age is 60 at government agencies and many companies.

Under the new retirement program, both employers and employees will contribute, with minimum inputs ranging from 3%-10% of salaries depending on employment tenure. The plan, which still needs parliamentary approval, is the latest initiative by the government to prepare for an aging society.

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People who are over 60 accounted for 17.5% of the Thai population in 2019, or about 11.6 million people. That group is expected to grow to 28% by 2033, Ms. Rachada said, adding that Thailand’s birthrate is declining, with just 610,000 additions in 2019.

Earlier this month, the government delayed a plan that would extend the retirement age by three years for government employees due to budget constraints and the current focus on vulnerable workers affected by the COVID-19 pandemic.

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