The Thai government is reviewing potential reforms to civil servant salaries and benefits in response to rising costs that are straining the national budget. Discussions are underway between the Comptroller-General’s Department, the Budget Bureau, and the Office of the Civil Service Commission (OCSC) to explore changes in pay structures and compensation.
In fiscal year 2023, the government allocated 818 billion baht for salaries, pensions, and related personnel costs, marking a slight increase from the previous year. A key issue is the annual healthcare cost for civil servants, which stands at approximately 100 billion baht. As Thailand’s population continues to age and healthcare expenses rise, concerns have also been raised about the sustainability of pension obligations, which are growing due to increased life expectancy.
Officials are exploring ways to contain these escalating costs, including negotiating medical prices and potentially capping healthcare spending. Over the past six years, there has been no adjustment to the salary base for civil servants, though the workforce grew marginally, reaching 1.5 million employees by fiscal 2022. Welfare spending for government personnel saw a 7.61% increase in 2023, adding further pressure on the budget.
In addition, 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 these discussions progress, the government is considering options such as aligning civil service pay with private sector standards or adopting compensation models from the private sector to maintain financial sustainability in light of a rapidly aging population.
Officials and key stakeholders will continue to assess these proposed changes, balancing the long-term sustainability of the current system with the needs of civil servants and the overall national economy.
