Employer of Record Guide in Thailand
Thailand's dynamic economy and skilled workforce make it an attractive destination for global expansion, but navigating local employment laws requires careful attention to detail. This comprehensive guide breaks down everything you need to know to hire compliantly and confidently in the Land of Smiles.
Capital City
Currency
Languages
Population size
Services available in this country:
Key stats and facts
Thailand's tech sector is booming with high demand for software developers and AI engineers, while its strategic location and growing GDP of $7,995 per capita make it a compelling market for expansion. Understanding the local landscape—from Bangkok's bustling business hub to the country's 25% tax rate—sets the foundation for successful hiring.
Major economic hubs
Skills in demand
Currency
Language
GDP per Capita
Standard Tax Rate
Your EOR guide in Thailand
Getting payroll, benefits, and compliance right in Thailand means understanding the nuances of provincial minimum wages, progressive tax structures, and mandatory social contributions. Here's your practical roadmap to managing everything from working hours to holiday pay with confidence.
Minimum Wage
Thailand's minimum wage varies by province and is set by the National Wage Committee. As of 2025, daily minimum wage rates range from ฿330 to ฿370 per day.
| Province/Region | Daily Minimum Wage (THB) | Monthly Equivalent (THB) |
|---|---|---|
| Bangkok | ฿370 | ฿11,100 |
| Phuket | ฿370 | ฿11,100 |
| Chonburi (Pattaya) | ฿362 | ฿10,860 |
| Samut Prakan | ฿362 | ฿10,860 |
| Nonthaburi | ฿362 | ฿10,860 |
| Pathum Thani | ฿362 | ฿10,860 |
| Most other provinces | ฿330-฿350 | ฿9,900-฿10,500 |
Note: Minimum wage rates are reviewed annually and may be adjusted based on economic conditions and cost of living.
Payroll Cycle
- Monthly: Most common payment frequency
- Bi-weekly: Acceptable but less common
- Payment deadline: Must be paid by the end of the following month
Individual Income Tax
Thailand operates a progressive income tax system for residents. Non-residents are taxed at flat rates on Thai-sourced income.
Resident Tax Rates (2025):
| Annual Income (THB) | Tax Rate |
|---|---|
| 0 - 150,000 | 0% |
| 150,001 - 300,000 | 5% |
| 300,001 - 500,000 | 10% |
| 500,001 - 750,000 | 15% |
| 750,001 - 1,000,000 | 20% |
| 1,000,001 - 2,000,000 | 25% |
| 2,000,001 - 5,000,000 | 30% |
| Over 5,000,000 | 35% |
Non-Resident Tax Rate: 15% flat rate on Thai-sourced income
Tax Residency Criteria
Individuals are considered Thai tax residents if they stay in Thailand for 180 days or more in a calendar year. Tax residents must pay Thai income tax on worldwide income, while non-residents only pay tax on Thai-sourced income.
Employer Payroll Contributions
Employers in Thailand must contribute to several mandatory schemes:
| Contribution Type | Employee Rate | Employer Rate | Maximum Monthly Base |
|---|---|---|---|
| Social Security Fund | 5% | 5% | ฿15,000 |
| Workmen's Compensation | 0% | 0.2-1.0% | ฿15,000 |
| Unemployment Insurance | 0.5% | 0.5% | ฿15,000 |
| Total Employer Cost | 5.5% | 5.7-6.5% |
Note: Social Security contributions are capped at ฿750 per month for both employee and employer.
Working Hours
The standard working schedule in Thailand is regulated by the Labour Protection Act:
- Regular hours: 8 hours per day, 48 hours per week maximum
- Dangerous work: 7 hours per day, 42 hours per week maximum
- Rest periods: Minimum 1 hour break for shifts over 5 hours
- Weekly rest: At least 1 full day off per week
Overtime Pay
- Overtime rate: 1.5× regular hourly wage for work beyond standard hours
- Holiday work: 2× regular hourly wage for work on public holidays
- Maximum overtime: 36 hours per week
- Calculation: Based on regular salary divided by standard working hours
Employment Classifications
Full-time employees: Work standard hours with full benefits and protections under Thai labour law.
Part-time employees: Work fewer hours but entitled to proportional benefits.
Fixed-term contracts: Maximum 2 years, renewable once. After that, automatically becomes permanent employment.
Annual Leave
- Minimum entitlement: 6 working days per year after 1 year of service
- Accrual: Increases with length of service
- Carry-over: Unused leave may be carried forward or paid out (employer discretion)
- Payout: Must be paid at termination if unused
Sick Leave
- Entitlement: Up to 30 working days per year
- Medical certificate: Required for absences over 3 consecutive days
- Pay: Full pay for sick leave taken
- Chronic illness: Additional provisions may apply
Maternity Leave
- Duration: 98 days total
- Paid leave: 45 days at full pay
- Timing: Can be taken before and after childbirth
- Job protection: Position must be held open
- Benefits: Continue during leave period
Paternity Leave
- Duration: 15 days
- Pay: Unpaid (unless company policy provides otherwise)
- Timing: Must be taken within 60 days of birth
Other Statutory Leave
- Bereavement leave: 3 days for immediate family
- Military service: As required by law
- Jury duty: Time off for civic duties
- Religious observances: Reasonable accommodation required
Summary
| Leave Type | Duration | Paid? | Funding |
|---|---|---|---|
| Annual Leave | 6+ days/year | Yes | Employer |
| Sick Leave | 30 days/year | Yes | Employer |
| Maternity Leave | 98 days (45 paid) | Partially | Employer |
| Paternity Leave | 15 days | No | N/A |
| Bereavement | 3 days | Yes | Employer |
Termination Types
Termination with Cause:
- Immediate dismissal allowed for serious misconduct
- No notice or severance required
- Must be documented and justified
Termination without Cause:
- Requires advance notice or payment in lieu
- Severance pay may be required
- Must follow proper procedures
Notice Period Requirements
Notice periods depend on the length of employment and type of contract:
| Length of Employment | Notice Period |
|---|---|
| Probation period (119 days) | No notice required |
| 120 days - 1 year | 30 days |
| 1-3 years | 60 days |
| 3-6 years | 90 days |
| 6-10 years | 120 days |
| Over 10 years | 120 days |
Severance Pay
Severance pay is required for employees terminated without cause:
| Length of Employment | Severance Pay |
|---|---|
| 120 days - 1 year | 30 days salary |
| 1-3 years | 90 days salary |
| 3-6 years | 180 days salary |
| 6-10 years | 240 days salary |
| 10-20 years | 300 days salary |
| Over 20 years | 400 days salary |
Final Pay Requirements
- Timeline: Final pay must be made within 7 days of termination
- Components: Includes salary, overtime, unused annual leave, and any other entitlements
- Deductions: Only legally permitted deductions allowed
Legal Protections
Employees are protected from termination based on:
- Pregnancy or maternity leave
- Trade union activities
- Filing complaints with authorities
- Discrimination based on protected characteristics
National Public Holidays
Thailand observes 16-18 public holidays annually, including Buddhist religious days and royal observances:
| Holiday | Date | Type |
|---|---|---|
| New Year's Day | January 1 | Fixed |
| Makha Bucha Day | February/March | Buddhist |
| Chakri Memorial Day | April 6 | Royal |
| Songkran Festival | April 13-15 | Traditional |
| Labour Day | May 1 | Fixed |
| Coronation Day | May 4 | Royal |
| Visakha Bucha Day | May/June | Buddhist |
| Queen Suthida's Birthday | June 3 | Royal |
| Asanha Bucha Day | July/August | Buddhist |
| Khao Phansa Day | July/August | Buddhist |
| HM Queen's Birthday | August 12 | Royal |
| HM King's Birthday | July 28 | Royal |
| Passing of HM King Bhumibol | October 13 | Memorial |
| Chulalongkorn Day | October 23 | Royal |
| Constitution Day | December 10 | National |
| New Year's Eve | December 31 | Fixed |
Holiday Pay Rules
- Eligibility: All employees entitled to holiday pay
- Rate: Regular daily wage
- Work requirement: If required to work, paid at 2× regular rate plus substitute day off
Regional Variations
Some provinces may observe additional local holidays or festivals, but these are typically not mandatory paid holidays unless specified in employment contracts.
Required Documentation
For Thai Nationals:
- Employment contract in Thai language
- Thai ID card copy
- House registration certificate
- Educational certificates
- Previous employment certificates
- Tax ID number
For Foreign Nationals:
- Valid passport with appropriate visa
- Work permit
- Employment contract (Thai and English versions)
- Educational certificates (authenticated)
- Medical certificate
- Tax ID number
- Social security registration
Work Authorization Requirements
Foreign employees must obtain:
- Non-immigrant visa: Appropriate category for employment
- Work permit: Issued by Department of Employment
- Extension of stay: Based on employment
Legal Compliance
- Labour Protection Act: Governs employment relationships
- Social Security Act: Mandatory registration required
- Personal Data Protection Act: Privacy compliance required
- Anti-money laundering: Know your employee requirements
Contractual Elements
Employment contracts must include:
- Job description and responsibilities
- Salary and benefits
- Working hours and overtime provisions
- Leave entitlements
- Termination procedures
- Confidentiality clauses
- IP assignment provisions
Implementation Process
| Step | Timeline | Responsibility |
|---|---|---|
| Contract preparation | 1-2 days | EOR |
| Document collection | 3-5 days | Employee |
| Work permit application | 15-30 days | EOR/Employee |
| Social security registration | 1-2 days | EOR |
| Tax registration | 1-2 days | EOR |
| Payroll setup | 2-3 days | EOR |
Worker Classification
Thailand distinguishes between employees and independent contractors:
Employees:
- Work under employer control and direction
- Receive regular salary and benefits
- Protected by labour laws
- Subject to income tax withholding
Independent Contractors:
- Provide services independently
- Invoice for work performed
- Not covered by labour protections
- Responsible for own tax obligations
Note: Misclassification can result in penalties and back payments of social security contributions.
Industry-Specific Considerations
Technology Sector:
- Special visa categories available (SMART Visa)
- Relaxed work permit requirements for certain roles
- Tax incentives for qualifying companies
Manufacturing:
- Additional safety regulations apply
- Workmen's compensation rates vary by industry risk
- Environmental compliance requirements
Cultural Workplace Norms
Thai workplace culture emphasises:
- Respect for hierarchy: Senior-junior relationships important
- Face-saving: Avoid public criticism or confrontation
- Relationship building: Personal connections matter
- Work-life balance: Family obligations respected
- Buddhist values: Compassion and mindfulness in workplace interactions
Remote Work Considerations
Remote work regulations in Thailand:
- Legal framework: Generally permitted but not specifically regulated
- Tax implications: Location of work may affect tax obligations
- Equipment: Employer typically provides necessary tools
- Data protection: Must comply with Personal Data Protection Act
- Cross-border: Special considerations for employees working from abroad
What We Handle
Borderless AI manages all aspects of Thai employment compliance:
- Contract management: Thai language contracts and legal compliance
- Payroll processing: Monthly payroll with all statutory deductions
- Compliance monitoring: Ongoing adherence to labour law changes
- Local representation: Thai entity for legal employment relationship
- Government reporting: Social security, tax, and regulatory filings
- Employee support: Local HR support in Thai and English languages
Built-in benefits packages for Thailand
When the world is your competition, it pays to incentivize new hires and existing alike. Borderless AI benefits packages typically inlucde:
Medical Insurance
Dental Insurance
Retirement Contribution
Life Insurance
Vision Insurance
Explore other countries
Unlock global hiring potential
Simplify your payroll and hiring processes today.
