The cabinet yesterday approved a package of measures to deal with the ageing population, including tax incentives for companies that hire senior workers, reverse mortgages and a mandatory provident fund.
According to Kobsak Phutrakul, assistant minister to the Prime Minister's Office, companies that hire ageing people with a salary of 15,000 baht a month or less will be eligible for a 100% corporate tax deduction on expenses incurred.
There are approximately 94,000 employees aged 60 years and above nationwide.
According to Mr Kobsak, the government also aims to promote private-sector investment in building residences, clinics and entertainment spaces for the elderly on state-owned plots.
Kobsak: Tax breaks for hiring companies
The Treasury Department has prepared four plots for the private sector to build "senior complexes": 50 rai in Chon Buri, 14 rai in Nakhon Nayok, 64 rai in Chiang Rai and 7.5 rai in Chiang Mai.
The rental fees in the first three locations will be discounted to one baht per square wah, while those for the Chiang Mai plot are set at 24 baht per square wah.
The lease will be for 30 years and can be extended for another 30 years.
Reverse mortgages will allow elderly homeowners to convert their home equity into cash with no repayment of the loan until the borrower dies or the home is sold, to help them cover monthly living expenses and healthcare costs.
If homeowners die, part of the home can be inherited.
The long-awaited mandatory provident fund scheme requires companies with 100 employees or more to match employee contributions to the fund within three years of its enforcement.
Employers and workers will be obliged by law to contribute to the provident fund anywhere from 3% to 15% of salary, with a cap of 60,000 baht a month per worker.
The government is estimated to spend 698 billion baht over the next eight years, with 287 billion baht to be spent this year.
Nathaporn Chatusripitak, an adviser to Commerce Minister Apiradi Tantraporn, said the cabinet also yesterday approved setting up a fund worth 9 billion baht to guarantee a minimum return to unit holders in the Thailand Future Fund, which will invest in infrastructure projects.
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