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Table 6.2 Adapted from Entry-Level Salary of the Civil Service

Source: Adapted from OCSC Circulation on Education Accreditation. 14 December 2008, Office of the Civil Service Commission, Bangkok, 2008.

a The exchange rate is approximately US$1 for 33 Thai Baht.

whose salaries are above 8,200 baht, they can get an additional 1,000 baht (or less) as long as this top-up combined with the salary does not exceed 11,700 baht. The top-up, however, does not count as the basis for pension calculation.

6.4.2.2 Performance Management and Salary Increase

A performance appraisal is conducted twice a year. The first round of the performance management is between October 1 (i.e., the beginning of the fiscal year) and March 31. The second round is between April 1 and September 30. Performance appraisal components are pre-announced and are in the ratio of 70:30 for output:job-related behavior (competency). Five core competencies10 developed by the OCSC have also been promoted recently to be included in the performance appraisal criteria. Starting October 1, 2009, the new performance management system will be implemented along with the new range-based salary structure. An official’s salary increase will be based on the midpoint of their respective salary band, instead of a step increase as in the previous act. The highest increase an official can be awarded is 6% of his/her respective midpoint. It should be noted that as the range of each salary band is still wide, the OCSC employs two midpoints in each salary band to prevent too much of a difference in salary increase between those who are close and further away from the real midpoint.

6.4.3 Position Allowance

Unlike the aforementioned top-up pay that aims to compensate for the cost-of-living gap, the CSC created a position allowance in 1992 as a means of reducing the gap between public and private sector income, especially for those in management and other highly competitive positions.

Position allowances are paid only to officials who satisfy the requirement and conditions prescribed for each type of position allowance. There are two types of position allowances: professional and specialization allowances (for professional and knowledge workers, including, for example, doctors, nurses, mechanical engineers, and senior advisors who have acquired experience in their profession), and managerial allowances for those in managerial and executive positions (OCSC 1997). Examples of position allowance are shown in Table 6.3.

10They are achievement motivation, service mind, expertise, integrity, and teamwork.

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126 Public Administration in Southeast Asia

Although the NCC is expected to play a major role in the salary adjustment of the civil service as well as of the public sector as a whole, historically its effectiveness depends on the leadership of the committee’s secretariat (i.e., the OCSC and the Department of Comptroller General). For example, under the strong leadership of Khunying Dhipawadee Meksawan, the OCSC’s secretarygeneral, the NCC was a leading and effective advocate in proposing salary schedule adjustments in the mid 1990s. Without a strong secretariat, the NCC finds itself difficult to act mainly because it is comprised of representatives from too many organizations that is likely to result in bandwagon effect of compensation adjustment which in turn creates unacceptable budget for the government.

6.4.6 Retirement and Pension

The retirement age of the civil service is 60. However, as mentioned earlier, section 108 of the current Civil Service Act allows the extension of the retirement age up to 10 years if the skill is considered necessary for the civil service.

To be eligible for a government pension or a lump-sum gratuity, a civil service official must

(i)meet the compulsory retirement age (60 years old) or resign from the service at 50 years of age,

(ii)have at least 25 years of service, (iii) have agency/position dissolved, or (iv) have permanent disability.

Officials who are eligible for a lump-sum gratuity are those who meet one of the above conditions and have at least 1 year’s service. In order to be eligible for a monthly pension, an official must have at least 10 years of service. For those who resign from the service and do not meet the four conditions above, they have to have at least 10 years of service to be eligible for a lump-sum gratuity, and at least 25 years of service to be eligible for a monthly pension. The formula for a lump-sum gratuity is:

Last Drawn Salary * Years of Service

and the formula for monthly Pension is:

(Average of Last 60-Month Salary * Years of Services)/50

but not exceeding 70% of average last 60-month salary.

In addition to a monthly pension and gratuity, retired officials will receive payments from the Government Pension Fund (GPF). Such a fund has been in effect since 1997 to promote long-term saving of officials as well as to ensure the government’s pension obligations. The GPF was structured as a defined contribution system where the government and officials each contribute 3% of the officials’ monthly salary into the fund. For example, an official who retires at senior professional level11 with a last drawn salary of about 40,000 baht, with 30 years of service may receive a monthly pension of about 20,000 baht together with a lump-sum payment from the GPF of about 650,000 baht.

6.4.7 Challenges in Compensation

Pay difference between the civil service and the private sector is one of the most challenging factors under the compensation system. The current entry-level pay gap between the two sectors is approximately 20% for bachelor degree12 graduates in the field of social science. However, such a

11A majority of officials retire at either professional or senior professional level. Senior professional level is the middle level of the knowledge-worker position type.

12For example, knowledge worker at practitioner level.

©2011 by Taylor and Francis Group, LLC