It is not always true that government employees
earn less than private sector employees, although that
statement is likely true for government employees who
work in Bangkok and have attained a higher level of
education. For government employees who hold a
bachelor’s degree, their earnings depend on how long
they live. If they work in the provinces and survive
longer than seven years after retirement, their lifetime
income will be higher than that of private sector
employees. However, if they work in Bangkok, they
have to survive more than 20 years after retirement to
have a lifetime income that is larger than that of private
sector employees. High-ranking government officials
earn less than private sector employees who have similar
qualifications and work as executives or managers.
However, the income of those in the private sector is
quite volatile, moving in a very wide band, probably
caused by economic shocks and booms.
The findings have some implications for the
future pay structure of government officials. Thailand
plans to reduce the size its government workforce, even
though that plan has not yet been fully achieved. If the
government wants to recruit highly qualified workers,
their current salary scale should be adjusted to compete
with the private sector, particularly if they are to work in
Bangkok. Some jobs should be subcontracted to the
private sector; such jobs could be the ones that employ
sales and service workers, non-professional workers, and
many jobs that are located in regional areas outside the
capital. However, after the pay structure has been
adjusted to compete with the private sector, benefits
should also be restructured. The open-ended health-care
benefit should be terminated and replaced with another
sensible health-care package.
It is not always true that government employees earn less than private sector employees, although that statement is likely true for government employees who work in Bangkok and have attained a higher level of education. For government employees who hold a bachelor’s degree, their earnings depend on how long they live. If they work in the provinces and survive longer than seven years after retirement, their lifetime income will be higher than that of private sector employees. However, if they work in Bangkok, they have to survive more than 20 years after retirement to have a lifetime income that is larger than that of private sector employees. High-ranking government officials earn less than private sector employees who have similar qualifications and work as executives or managers. However, the income of those in the private sector is quite volatile, moving in a very wide band, probably caused by economic shocks and booms. The findings have some implications for the future pay structure of government officials. Thailand plans to reduce the size its government workforce, even though that plan has not yet been fully achieved. If the government wants to recruit highly qualified workers, their current salary scale should be adjusted to compete with the private sector, particularly if they are to work in Bangkok. Some jobs should be subcontracted to the private sector; such jobs could be the ones that employ sales and service workers, non-professional workers, and many jobs that are located in regional areas outside the capital. However, after the pay structure has been adjusted to compete with the private sector, benefits should also be restructured. The open-ended health-care benefit should be terminated and replaced with another sensible health-care package.
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