Thailand explores salary reforms amid rising civil service costs

The Comptroller-General’s Department, the Budget Bureau, and the Office of the Civil Service Commission (OCSC) are actively exploring reforms to salaries and benefits across all government sectors.

Patricia Mongkhonvanit, Director-General of the Comptroller-General’s Department, highlighted the urgency of addressing the issue due to the substantial budget allocated for these expenses. She noted that the government’s fiscal health and long-term fiscal burden must be scrutinised.

“The annual healthcare budget for civil servants alone stands at around 100 billion baht, excluding pensions, and continues to rise with increasing life expectancy.”

The emergence of new diseases and escalating costs of medicine further exacerbate the situation, increasing the need for salary reform.

Negotiations on prices or capping expenses are among the measures under consideration, according to Patricia. A thorough review of the entire civil service process, from recruitment to salaries and benefits, is necessary.

Ongoing discussions between the Comptroller-General’s Department, the Budget Bureau, and the OCSC are focusing on the long-term impacts and the future recruitment of civil servants.

While no final decisions have been made, Patricia stated that several options are being explored, including making salaries competitive with the private sector, aligning compensation packages with those of private companies, or maintaining the current salary system.

“We are integrating all options before making a final decision on which package to adopt.”

In fiscal year 2023, total expenditure on salaries, pension contributions, and compensation for government personnel amounted to 818 billion baht, marking a 0.78% increase from the previous fiscal year.

Over the past six years (fiscal 2018 to 2023), there has been no adjustment to the salary base, and the number of civil servants has increased slightly. In fiscal 2022, the number of civil servants stood at 1,513,722, a 0.21% year-on-year increase.

Total welfare expenditure for government personnel in fiscal 2023 reached 514 billion baht, a 7.61% year-on-year growth. Healthcare and pension costs are rising as Thailand transitions to an aged society. Public welfare expenditure amounted to 398 billion baht in fiscal 2023, up by 7.42% year-on-year, reported Bangkok Post.