Thailand plans early retirement programme to reduce civil servants

Prime Minister Anutin Charnvirakul's administration in Thailand has announced plans to implement an early retirement program for civil servants as part of its fiscal consolidation efforts. The government aims to reduce the state workforce by around 5% annually to cut down on spending. Deputy Prime Minister Pakorn Nilprapunt revealed that the program, set to commence in fiscal 2027, will initially target employees aged 50 and above, while workers aged 40 and older may qualify based on poor health or the need to care for relatives.

The initial phase of the program is projected to cost the government approximately 7 billion baht (US$209 million), according to Pakorn. As of June 2023, Thailand had a workforce of civil servants numbering up to 1.68 million. The government is considering offering compensation that is more than 12 times an employee's monthly salary, although the precise amount is still being discussed with the finance ministry.

Prime Minister Anutin Charnvirakul's administration has been focusing on fiscal consolidation, with the government's budget coming close to its self-imposed 70% limit. The early retirement package is intended to free up funds for potential economic shocks. Authorities are finalizing the details of the plan before presenting it to the cabinet for approval.