Thailand plans to introduce an early retirement programme for civil servants as part of efforts to reduce the state workforce by about 5 per cent annually and contain government expenditure, Deputy Prime Minister Pakorn Nilprapunt said.
The scheme is expected to begin in fiscal year 2027, initially targeting government employees aged 50 and above. Workers aged 40 and older may also qualify if they have poor health or need to care for relatives, Pakorn said. The government is still discussing the programme’s compensation arrangements and eligibility details.
The first phase is estimated to cost approximately seven billion baht (US$208.6 million), according to Pakorn. The government is considering offering participating employees compensation equivalent to more than 12 times their monthly salary, although the final amount has yet to be agreed with the finance ministry.
Thailand had as many as 1.7 million civil servants as of June 2023, according to the figures cited in the announcement. The proposed annual workforce reduction would form part of a broader effort to manage the cost of the public sector as the administration seeks to bring government spending under tighter control.
Prime Minister Anutin Charnvirakul’s administration has placed greater emphasis on fiscal consolidation, with the government’s budget under pressure from relatively high spending. Government expenditure is also set to reach its self-imposed ceiling of 70 per cent, adding to the administration’s focus on managing public finances.
The early retirement programme is among the measures being considered to release government funds and create a financial buffer against potential economic shocks. By encouraging eligible civil servants to leave public employment before the usual retirement age, the government aims to reduce the size of the state workforce over time.
However, the initial cost of the scheme means that the government must determine the compensation package and other implementation details before proceeding. The proposed payments are still under discussion, and the seven-billion-baht estimate applies to the programme’s first phase rather than establishing the total cost of the wider workforce reduction plan.
Pakorn said the relevant government agencies were finalising the details before submitting the proposal to the Cabinet for approval. The programme’s implementation will therefore depend on the completion of those preparations and the Cabinet’s decision.
The government has not yet confirmed the final compensation amount or provided further details on how the annual workforce reduction target will be implemented across the civil service. The proposed start date remains fiscal year 2027, with employees aged 50 and above expected to form the initial group eligible for early retirement.
