Thai Govt Plans to Cut Public Workforce by One Million

The Thai government is planning a significant reduction in its public workforce, aiming to shrink the number of civil servants from the current approximately three million to two million. This reform is intended to enhance efficiency and maintain fiscal discipline within the public sector. Deputy Prime Minister Pakorn Nilprapunt stated that public consultations on a proposed early retirement scheme are underway from July 22 to August 5, having already received over 8,000 comments. A summary of these recommendations will be submitted to the cabinet in mid-August. The government will also seek cabinet approval early next month to freeze the overall number of civil servants, military personnel, and police officers, whose combined workforce currently exceeds three million. Vacant positions created through retirement or dismissal will be abolished if no longer deemed necessary, while crucial roles will be retained following a review by the Office of the Public Sector Development Commission. "By reducing the public workforce while keeping the same budget, the average salary and welfare benefits of civil servants who remain will increase, making public service more attractive to talented recruits," Mr Pakorn said. This restructuring could also lead to an upward revision of salary scales across the civil service. Details of the early retirement package, including eligibility criteria, lump-sum payments, and pension arrangements, are currently under review by a joint committee comprising the Office of the Civil Service Commission (OCSC), the Public Sector Development Commission, the Comptroller General's Department, and the Budget Bureau. The government must balance financial incentives for participants with long-term fiscal sustainability. Government spokeswoman Rachada Dhnadirek emphasized that the proposal remains under public consultation, with over 10,000 people having participated so far. This initiative aligns with the government's efforts to boost public sector efficiency and maintain fiscal discipline, following the parliamentary approval in principle of the fiscal 2027 budget bill. Government sources indicate that personnel expenses, healthcare benefits, and pensions currently account for over 70% of recurring government expenditure, underscoring the need for long-term workforce restructuring alongside increased use of digital technology and more efficient public administration. The proposed early retirement scheme targets two groups: civil servants aged 50 or above, or those with at least 25 years of service; and individuals aged 40-49 with at least 10 years of service. Opinions are being sought on lump-sum benefits, calculated at eight to 12 times the base amount, the abolition of positions equivalent to the number of employees joining the scheme, and potential prohibitions on re-employment in the public sector after receiving benefits. The consultation also addresses the ratio of outsourced personnel to be hired to support digital transformation. Information Source: Bangkok Post