Thailand plans early retirement programme to reduce civil servants

Bangkok, Thailand is set to introduce an early retirement program for civil servants in an effort to reduce government spending, according to deputy prime minister Pakorn Nilprapunt. The program, slated to begin in fiscal 2027, aims to trim the state workforce by approximately 5% annually. Initially targeting individuals aged 50 and above, the program may also consider workers over 40 with poor health or those needing to care for relatives.

The first phase is estimated to cost the government about 7 billion baht (US$209 million). As of June 2023, Thailand had around 1.68 million civil servants. The government is contemplating compensation of over 12 times an employee's monthly salary, though the final figure is still under discussion with the finance ministry. Prime Minister Anutin Charnvirakul's administration has focused on fiscal consolidation due to a stretched budget from high spending and a projected ceiling of 70%.

The early retirement initiative is intended to generate funds for a contingency reserve in case of economic shocks. Relevant agencies are currently finalizing the plan's details before presenting it to the cabinet for approval.