The global talent pool is limitless. So, if you’re on the search for new team members, consider extending beyond your physical borders. Gain access to a bigger, more affordable talent pool of skilled professionals worldwide with fresh perspectives and valuable insights.
Thailand, for example, has a growing talent pool. Hiring from Thailand helps companies cut back on labor costs while offering a strategic location and employees with a service-oriented mindset. If you’re interested in hiring from Thailand, it’s key to understand how much it costs. This guide will break down everything you need to know.
Costs to Consider
There are a number of costs to keep in mind when hiring employees from Thailand. Some are legally mandated, while others are optional but frequently offered. We’ll also go over some fringe benefits that can help attract and retain top talent.
Mandatory Costs
- Salary
- Taxes and benefits
- Paid time off
- Overtime pay
- Severance pay
Optional and Frequently Offered Benefits
- Added benefits
- Bonuses, discounts, and rewards
- Extended health plan
Optional Perks
- Coworking space
- Health and wellness benefits
Mandatory Costs of Hiring in Thailand
To start, you need to take the following costs into account - there’s no way around it. So make sure to budget for them to ensure you comply with Thailand’s local laws and regulations.
Salary
The minimum wage in Thailand ranges from 328 THB (Thai Bhat) to 354 THB per day.
Taxes and Contributions
In Thailand, employers are responsible for various taxes and contributions. The specific taxes and contributions can vary based on the size and nature of the business. However, some common taxes and contributions for employers in Thailand include:
- Corporate Income Tax
- Social Security Contributions
- Workmen's Compensation Fund
- Provident Fund
Paid Leave
Employees in Thailand are entitled to the following types of paid leave from work:
- Vacation: On average, employees in Thailand are entitled to approximately 6-15 days of paid annual leave per year, depending on their years of service.
- Sick leave: Employees in Thailand are entitled to take 30 days of paid sick leave.
- Maternity leave: Female employees have 98 days of maternity leave. This is split into 45 days before childbirth and 45 days after. The remaining eight days can be taken before or after delivery for health reasons.
While on maternity leave, employees usually get a portion of their regular salary, usually 50% to 100% depending on the employer's policy. The payment comes from either the Social Security Office or the employer, depending on the coverage.
Public holidays: Thailand has 16 public holidays. During public holidays, employees are generally entitled to a day off with full pay.
Overtime Pay
Employees have the right to receive overtime pay. It is 1.5 times their regular hourly wage for the first two hours of overtime on regular working days. If overtime goes beyond two hours, employees receive double their regular hourly wage.
Severance Pay
Employees are generally entitled to severance pay based on their length of service. The calculation is typically one month's salary for each year of continuous employment, with a maximum limit of 300 times the daily wage.
Optional Costs
Attracting in-demand talent in today’s job market isn’t easy. The ongoing labor shortage has companies locked in fierce competition around the world, making it increasingly important to level up. Consider implementing the following benefits to attract and retain top talent.
Benefits
Offering a solid benefits package shows job seekers and employees that you value your team. An EOR, like Borderless, offers localized benefits packages that typically include the following:
- Medical Insurance
- Vision Insurance
- Dental Insurance
- Life Insurance
- Retirement Contributions
In addition to health insurance, it’s wise to add extra perks to your benefits package. Consider offering a health and wellness spending account, professional development opportunities, and monthly subscriptions. These are just a few attractive offerings that can help incentivize new hires.
Bonuses
Along with attracting top talent, bonuses come with a range of benefits. They help to improve retention rates, strengthen company morale, and boost productivity. Providing your team with a variety of generous bonuses shows them you value their hard work. There are a number to choose from, like signing, referral, and holiday bonuses.
Perks and Rewards
In addition to bonuses, many employers opt to provide their team with fun perks and gifts as a way to show their appreciation. For example, employers offer their workers rewards based on their interests, such as free sports tickets or live shows. They wine and dine employees and work to show them a good time outside of working hours. Another approach many top companies take is to offer quality employees more paid time off and flexible working arrangements.
Workspace Costs
Working with a global team helps cut down on costs surrounding real estate, utilities, cleaning, office furniture, etc. In short, remote-first work can save you a ton. However, it is a good idea to put aside some money for your distributed team members' workspaces.
Many companies offer their remote employees a budget for their home office or set them up in a coworking space. These membership-based workspaces have been proven to help employees thrive and are available throughout Thailand’s big cities.
Save with Borderless
Sign up with Borderless to learn everything you need to know about hiring in Thailand. Our intuitive platform and dedicated team will make sure you take care of your new teammates and maintain compliance every step of the way. Book a demo today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
