The seven amendments to the interim charter aim to forge national reconciliation, and give previously banned politicians the opportunity to work with the current administration through a possible cabinet reshuffle.
The reshuffle is expected to focus on tackling the sluggish economy.
One of the seven points will allow politicians who have previously been banned from politics to be appointed as National Legislative Assembly (NLA) members.
Under the current interim charter, NLA members must never have been stripped of voting rights. Meanwhile, the amendment proposes to only bar those who are currently serving out their five-year political ban from becoming NLA members.
- See earlier report: Unlocking reconciliation
Though the amendment specifically mentions the NLA, the same provision will be applied to cabinet members and the National Reform Council.
Deputy Prime Minister Wissanu Krea-ngam said the main purpose of this amendment to the 2014 charter is to create government continuity for successful reform.
This may also help forge national reconciliation and pave the path for reforms, he said, adding that whether or not the previously banned politicians will be part of the Prayut administration is not for him to decide.
Mr Wissanu said the amendment to the interim charter is in line with the draft charter currently being prepared by the Constitution Drafting Committee.
The draft document does not prohibit politicians who complete the ban from becoming members of parliament. (Story continues after graphic)
"You may see that the amendment to the interim charter is seeking to comply with the draft constitution," said Mr Wissanu.
"For example, the draft charter has proposed the national reform steering assembly; so does the interim charter," he explained.
But political observers view the amendment, which still needs to be submitted to the NLA for approval before it can be incorporated into the draft charter, as a way for Somkid Jatusripitak, an economic adviser to the National Council for Peace and Order (NCPO), to become a cabinet minister.
Mr Somkid has worked closely with the NCPO but was unable to join the military-ruled cabinet because of the political ban.
He was banned from politics for his role as one of the 111 former executives of the now-defunct Thai Rak Thai Party, the so-called House No.111, in 2007.
Some observers believe the amendment would also reduce political pressure from the government's opponents and lessen public criticism.
Mr Wissanu insisted the amendment will do more good than harm. "I think it isn't fair to keep them away from politics forever. I admit it was a mistake [to ban them in the first place]. It is a good time to move forward," he said.
Somjai Phagaphasvivat, a political scientist at Thammasat University, said the amendment is likely to have a positive impact on the Prayut administration.
He said the amendment will allow several politicians who distanced themselves from deposed prime minister Thaksin Shinawatra to strengthen the government.
Veteran politicians like Surakiart Sathirathai, Pinit Jarusombat and Banharn Silpa-archa have political clout which can be put to good use, he said.
Mr Somjai also said the seven amendments will guarantee that the coup will not go to waste by installing the 200-member reform assembly.
A national referendum on the draft charter will extend the government's stay in power by several months, he said. Fresh elections may not take place next year because the referendum process is complicated and a number of laws need to be promulgated before it can happen, he added.
According to Mr Somjai, the draft charter needs to be accepted at the referendum, or the whole drafting process will start anew, further extending the government's tenure. But if it is rejected, criticism about holding onto power will be limited.
"I believe the draft constitution will be adopted at the referendum. The government has access to media outlets which will enable it to strategise ways to increase the chance of its adoption," he said.
Pheu Thai member and red-shirt leader Worachai Hema said the amendment to allow banned politicians to join the NLA shows that a cabinet reshuffle is likely.
"The economic team is a vulnerable spot for the Prayut government. I think the prime minister sees the problem. Mr Somkid is suitable for the finance minister post," he said.
Pheu Thai member Samart Kaewmeechai said he believes the NRC will shoot down the draft constitution to keep the Prayut government in power for longer to implement reforms.
He said the amendment regarding NLA member qualifications is simply a way to welcome banned politicians on board.
Mr Somkid was a supporter of ex-premier Thaksin right up to the end. In this 2006 photo Thaksin is presenting blessings to Mr Somkid at a Songkran event, less than five months before a military coup ended the Thaksin regime. (Photo by Somchai Poomlard)
