BANGKOK, THAILAND – Thailand is considering raising the retirement age for civil servants from 60 to 65 as it confronts a rapidly ageing population and looming labour shortages.
The government has tasked the Civil Service Commission with leading a comprehensive study, in cooperation with the Comptroller-General’s Department and the National Economic and Social Development Council. Deputy Prime Minister Borwornsak Uwanno said the work must be completed in the coming months because Prime Minister Anutin Charnvirakul has pledged to dissolve parliament by the end of January.
“The prime minister wants the issue decided during this government’s term,”
said Borwornsak.
If implemented, the change would affect hundreds of thousands of civil servants nationwide, though the police would be excluded. Some segments of the public sector already allow extended service: judges and prosecutors can remain in office until 70, while university lecturers may work until 65.
Fiscal strain versus opportunities for younger workers
Supporters of the reform cite rising life expectancy and pressure on public finances. Borwornsak argued that a higher retirement age would help curb pension spending. Retirees currently receive monthly payments of up to 70% of their final salary or can opt for a lump-sum payment. Average time spent drawing a pension has doubled from around ten to about 20 years in recent decades, largely due to better healthcare.
Critics counter that keeping officials in their posts longer could increase overall salary costs and restrict promotion and hiring opportunities for younger workers. Some experts also question whether older staff would enhance the efficiency of the state apparatus. Many civil servants may have little incentive to continue beyond 60; teachers, for example, are eligible for pensions of 45,000 to 50,000 baht per month from that age, providing a comfortable retirement.
Researchers warn of labour market distortions
The Thailand Development Research Institute (TDRI) has urged caution. Senior Fellow Nonarit Bisonyabut warned that changing the rules for one group could upset the overall labour balance in a country where people work in four main sectors: agriculture, the civil service, the formal private sector and the informal sector.
“An increase could disrupt the balance of the labour market,”
said Nonarit.
He noted that while private firms often encourage early retirement, those in agriculture and informal work typically continue well past 60, until physical strength declines. By contrast, secure pensions mean many civil servants prefer to leave at 60.
“If the age limit rises, the labour market could soon be dominated by older workers, while younger people struggle to move up,”
Nonarit added.
Ageing nation faces international comparisons
Thailand has been classified as an ageing society since 2023, with more than one-fifth of its population over 60. Forecasts suggest that within the next decade about one in three people will be seniors, raising concerns over the long-term sustainability of the social security and healthcare systems.
Internationally, several advanced economies have already pushed retirement ages higher. Sweden and the Netherlands have set 67 as the benchmark, the United Kingdom plans to reach 68 by 2046, Slovakia is at 69, and Italy and Estonia are considering a threshold of 71. Finland links the pension age flexibly to life expectancy.
Economist Prof. Pungpond Rukumnuaykit of Chulalongkorn University stressed that trends in rich countries cannot simply be copied.
“No developing country has yet raised the retirement age in the public sector. Thailand does not automatically have to follow the trend of wealthy nations,”
said Pungpond.
She argued that the strong demand for civil service positions contradicts claims of a broad labour shortage, and questioned the fiscal rationale.
“The argument of lower state spending is misleading, because longer employment automatically means higher wages. Productivity usually declines after 50. If officials work until 65 or 70, will Thailand still be competitive?”
she asked.
Calls for gradual change and broader reform
Kevalin Wangpichayasuk, deputy managing director at Kasikorn Research (KResearch), said any shift in the retirement age must be backed by long-term planning.
“We need to prepare for this. The increase should be gradual and only undertaken with thorough planning,”
said Kevalin, who views the measure as ultimately unavoidable.
She called for parallel reforms, including greater investment in education and human capital, stronger preventive healthcare, and a more efficient public administration. World Bank data show that the efficiency of Thailand’s public sector has stagnated for about three decades and remains in the 60th percentile globally, meaning more than 40% of governments perform better.
The debate over when civil servants should retire is therefore emerging as more than a technical adjustment. It is becoming a test of how Thailand confronts a profound demographic transformation and balances fiscal prudence, competitiveness and intergenerational fairness.