A government quality allowing the monthly income payment for civil servants to be split into two installments is an additional opportunity for those who might prefer it over the standard once-a-month pay, Prime Minister Srettha Thavisin insisted yesterday.
He was responding to criticism from those who disagreed with the commission’s choice, which was mainly intended to boost the business.
Following the initial case meeting of his presidency on Wednesday, the PM unveiled the strategy. It is anticipated that the new repayment method will launch in January.
There are 3 million state leaders in the country, with teachers, officers, and members of the armed forces making up the majority.
Mr. Srettha also disproved information that the authorities had developed this new income repayment plan because it lacked the funds to pay the monthly earnings of civil servants as usual all at once.
According to him, the government will need to make money for paying perhaps earlier than usual because it will pay the first half of the salary by mid-month before paying the remaining portion at the end.
Every time a new opportunity is presented to someone, I understand that there are always folks who like or dislike it.
He claimed that after reviewing the income proposal, the government consulted civil servants.
The PM said he thinks it is possible for them to request their creditors to allow two bills per month if they are concerned they won’t be able to retain the money to be paid in the first installment until the end of the month, when they typically pay off their debts.
The new salary payment system, according to Nonarit Bisonyabut, a research fellow at the Thailand Development Research Institute( TDRI ), would likely lead to more debts for many civil servants because they frequently spend more money than usual when paid the first half of their monthly salary.
According to Mr. Nonarit, an expert in finance in the areas of poverty, inequality, and economic growth, it would be beneficial if those debt-strapped civil servants were rather given assistance to better maintain their debts, such as through a debt settlement program.
According to Chaiwat Sathawornwichit, a list-MP of the opposition Move Forward Party( MFP ), there are currently 3.1 million civil servants, including 900,000 teachers who each owe more than 1.5 million baht in debts.
After their loan payments are instantly subtracted from their paid income, he said, these civil servants typically have less than 30 % of their total monthly salary left each month.
For instance, those who receive a monthly salary of 15,000 Baht typically have 4,500 BaHt left over after all assumptions, giving them an average daily spending limit of about 150 ringgit, according to him.
The Federation of Teachers of the South Region’s chair, Prathum Ruangrit, said the program may hasten investing in the public and private areas in southeastern Thailand.
Nevertheless, he expressed concern about potential problems because, according to product contracts, the majority of officials’ salaries are automatically subtracted by payment offices to pay back loans from discounts cooperatives and other financial sources.
Additionally, according to Mr. Prathum, the monthly fixed payment may be split in half equally.
He continued,” The schedule should be reviewed to determine its advantages and disadvantages because the twice-a-month payment system might need an increase in staff within payroll departments.”
A state official in the northern county of Khon Kaen also expressed concern about this case quality, saying it would interfere with his way of life and financial management.
The official stated that he is required to make a number of regular payments, all of which are expected at the end of the month and include money from savings cooperatives, bank loans, credit card bills, and utility bills.
He claimed that while the government’s goal may be to boost cash flow, the bi-monthly payment may even invite officials to take on more debt.