Employer of Record in Thailand

Businesses can only operate smoothly in Thailand if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Thailand below, to avoid any compliance issues.

Employment Contract Requirements

When hiring in Thailand, it's important to know about the rules laid out in the Labour Protection Act of 1998. It stops discrimination based on things like age, religion, sexual orientation, gender expression, and race. The hiring formalities in Thailand include:

• Employment Contract
• Verification of Identity and Eligibility to Work
• Payroll and Tax Documentation
• Probationary Period Review

Onboarding Process

We can help you get a new employee started in Thailand quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Thailand

Employees are generally expected to work no more than 8 hours per day and 48 hours per week. After 5 consecutive hours of work, employees are entitled to a 1-hour break, which can be taken as a continuous period or divided into shorter intervals throughout the working day.

Overtime in Thailand

Employees can work a maximum of 36 overtime hours per week, compensated at a rate of 150% of their regular salary on standard working days. On holidays, the overtime pay increases, ranging from 200% to 300% of the regular salary.

Probation Period in Thailand

There are no legal regulations about how long a job probation period should be. However, since the law requires severance pay for employees let go after 120 days, most companies choose a probation period of not more than 4 months.

Fiscal Year in Thailand

1 January - 31 December is the 12-month accounting period that businesses in Thailand use for financial and tax reporting purposes.

Payroll Cycle in Thailand

The payroll cycle in Thailand is usually monthly, with employees being paid on or before the last day of the month.

Minimum Wage in Thailand

The minimum wage for employees in Thailand is typically 330 THB to 370 THB per hour (varies by region), amounting to ~9,900 THB - 11,100 THB per month for a typical 48 hour work week.

Bonus Payments in Thailand

There are no specific legal provisions mandating the payment of an annual bonus or a 13th salary. However, employers have the flexibility to offer bonuses at their discretion.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 5%- 10% on top of the employee salary in Thailand.

Employee Payroll Tax Contributions

In Thailand , the typical estimation for employee payroll contributions cost is around 5%.

Individual Income Tax Contributions

In Thailand, the income tax system operates on a 'Pay As You Earn' basis, with individual income tax rates ranging from 0% to 35%. The calculation of income tax follows a progressive rate structure as follows:

Pension in Thailand

Thailand offers the National Pension Fund and Provident Fund for employees. To be eligible for an old-age pension, individuals must be aged 60 or older and have made contributions for a minimum of 180 months. here is no legal requirement in Thailand that mandates all companies, regardless of size, to establish a provident fund. The decision to set up a provident fund is left to the discretion of the company.

In Thailand, work permits and visas are necessary for employers hiring foreign workers. The process involves obtaining a Non-Immigrant B Visa, submitting a work permit application, and ensuring compliance with local laws. Key visa types include the Non-Immigrant B Visa, Non-Immigrant IB Visa, and Smart Visa. Employers must provide the correct documentation and plan for processing times to avoid delays.

Mandatory Leave Entitlement in Thailand

The annual leave entitlement in Thailand is 6 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Thailand

Workers in Thailand are entitled to a minimum of 13 mandatory public holidays each year. These holidays include:

Paid Time Off in Thailand

Employees in Thailand are entitled to six days of annual leave after completing one full year with their employer. If employees haven't worked for a full year, leave may be offered on a pro-rata basis. Employers and employees can also establish a leave carryover policy through mutual agreement beforehand.

Maternity Leave In Thailand

Female employees in Thailand are entitled to 98 days of maternity leave. The first 45 days are fully paid by the employer, and the remaining period is compensated through the government social security fund at 50% of the regular salary rate.

Paternity Leave In Thailand

Government employees in Thailand receive 15 days of paid paternity leave each year. However, private employees, in accordance with Thai employment law, do not have provisions that grant them paternity leave.

Sick Leave In Thailand

Under Thai labor laws, employees are entitled to a maximum of 30 paid sick days each year, with their regular pay maintained by the employer. If the incapacity lasts longer than 30 days, the employee can use accrued paid vacation days or choose unpaid leave. When sickness-related absence exceeds three days, the employer may request a medical certificate from the employee.

Parental Leave In Thailand

Thailand does not have a shared parental leave policy that allows parents to divide or share a designated period of leave between them.

Personal Business Leave

Employees have the right to three days of paid personal business leave each year, allowing them to address personal matters.

Military Service Leave

Employees are eligible for up to 60 days of leave for military exercises, with compensation at the basic pay rate.

Termination Process in Thailand

Termination of employment in Thailand can occur with a valid reason. In cases without a valid reason, employees may file unfair dismissal claims, which Thai law often favors. Following termination, employers are required to notify the Social Security Office, and for foreign workers, the Immigration Bureau and the Department of Employment. Some valid reasons for termination include:

• Criminal offenses
• Negligence
• Violation of work rules
• Unexplained absence for three consecutive days

Notice Period in Thailand

In Thailand, terminating employment requires advance written notice, usually for a standard period of 30 days. Employers can specify longer notice periods in the employment contract if needed. Notice should be given before the scheduled wage payment date to apply for the following pay cycle, and the option for payment in lieu of notice is also possible.

Severance in Thailand

Employees who are terminated in Thailand and have completed more than 120 days of service are eligible for severance pay, except in cases of dismissal for serious misconduct. The severance pay amount is determined by the length of the employee's service, with an increase corresponding to the duration of employment as follows:

• Between 120 days and 1 year: 30 days' salary
• Between 1 year and 3 years: 90 days' salary
• Between 3 years and 6 years: 180 days' salary
• Between 6 years and 10 years: 240 days' salary
• Between 10 years and 20 years: 300 days' salary
• Over 20 years: 400 days' salary