Thai government to reform civil servant salaries and benefits amid budget strain

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As Thailand’s population ages and medical expenses rise, the government is assessing the long-term impact of pensions, which are growing due to increased life expectancy.

BANGKOK, Thailand – The government is considering reforms to civil servant salaries and benefits as rising costs increasingly strain the national budget. The Comptroller-General’s Department, the Budget Bureau, and the Office of the Civil Service Commission (OCSC) are in discussions to evaluate potential changes to pay structures and compensation. In fiscal 2023, government spending on salaries, pensions, and related personnel costs totaled 818 billion baht, a slight rise from the previous year.



A major concern is the annual healthcare cost for civil servants, which stands at around 100 billion baht. As Thailand’s population ages and medical expenses rise, the government is also assessing the long-term impact of pensions, which are growing due to increased life expectancy. Authorities are exploring ways to control these costs, including price negotiations and potential caps on healthcare spending.

Over the past six years, there has been no adjustment to the salary base for civil servants, while their numbers have grown marginally, reaching 1.5 million in fiscal 2022. Welfare spending for government personnel increased by 7.61% in 2023, adding to budgetary pressure. The government is considering options such as aligning civil service pay with the private sector or adopting private-sector-style compensation models.

Public welfare expenditure, including healthcare and pensions, rose to 398 billion baht in fiscal 2023, an increase of 7.42% from the previous year. As discussions continue, the government is weighing the sustainability of its civil service compensation system against the challenges of a rapidly aging society. (NNT)