Thai government plans to shrink state sector workforce by one million

The Thai government is initiating a significant civil service reform aimed at shrinking the public workforce by one-third, reducing it from three million to two million employees. This ambitious plan includes a proposed early retirement scheme, currently undergoing public consultation from July 22 to August 5. Over 8,000 comments were received in the first three days alone, indicating substantial public engagement with the proposal.

A key objective of this restructuring is to enhance the attractiveness of public service. By reducing the workforce while maintaining the same budget, the government anticipates an increase in average salaries and welfare benefits for the remaining civil servants. This, in turn, is expected to draw more talented individuals into the sector. The government also plans to freeze the overall number of civil servants, military personnel, and police officers, who collectively exceed three million people.

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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.

Vacant positions will be abolished if deemed unnecessary after a review, while essential roles will be retained. The early retirement package details, including eligibility and financial incentives, are still under review by various government departments. The initiative aligns with the government's broader goals of boosting public sector efficiency and maintaining fiscal discipline, especially as personnel expenses, healthcare, and pensions currently account for over 70% of recurring government expenditure. The government emphasizes the need for long-term workforce restructuring, coupled with increased use of digital technology and more efficient administration.

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The initiative aligns with the government's efforts to ramp up public sector efficiency while maintaining fiscal discipline, following parliamentary approval in principle of the fiscal 2027 budget bill.