COST - BENEFIT OF EMPLOYEES EARLY RETIREMENT PROJECT 2010 OF GOVERNMENT SAVINGS BANK

Abstract

This research aims to study general information of economic and social factors as well as the decision on retirement, cost analysis and benefit of employees approved to be retired by Early Retirement Project from 103 subjects of employees who are approved to be participated in Early Retirement Project 2010 throughout Thailand. The results show that the subjects are male and female in the percentage of 68.0 and 32.0, respectively. Their average age in the year of retirement is 52.9 years old. The majority of their marital status is marring and living together calculated to be 69.9%. Most of them are unemployed calculated to be 67.0% and most of them also have no debt calculated to be 72.8%. The main causes of their decision on early retirement are that they want to take rest and the benefit of this project is satisfying. When considering on cost and analysis in the form of money per employee during the duration of early retirement, it is found that the total cost is 6, 136, 497 baht that is higher than the benefit that is only 3, 607, 468 baht per employee. The average benefit for all ages is 8,734,717 baht and 4,798,966 baht, respectively. When considering on age, it is found that employees with the age between 41- 45 years have the highest cost with the highest average benefit of 13, 310, 385 baht and 10, 710, 366 baht, respectively.

When considering on work level, the average of total cost in each work level is 5, 569, 709 baht divided into average direct cost of 632,066 baht and average indirect cost of 4,937,643 baht. The operation employees have the highest total cost of 6, 710, 961 baht and the average total of 3,451,884 baht while the executive employees have the highest benefit of 4,372,422 baht. From the analysis of cost and benefit in the form of money for early retirement, it is found that the cost and benefit during the early retirement has the Net Present Value (NPV) of -2,529,029 baht and B/C ratio is 0.6. When considering on work level, it is found that all work levels have Net Present Value (NPV) as the negative value and B/C ratio as zero. When considering on employees’ ages, it is found that employees with the age between 56-59 years old have Net Present Value (NPV) as positive value of 190,752 baht and B/C ratio as 1.1. This result shows the worthiness and benefit that is not in the form of money, i.e., retired employees have higher level of following current news and situation.