Hire in Thailand
Our quickstart guide to hiring in Thailand
Learn everything you need to know about hiring an employee in Thailand
Currency
Thai Baht (THB)
Capital
Bangkok
Contract Languages
Bahasa Indonesia / English
Payroll Cycle
Monthly
Wage & Tax Obligations
Minimum Wage Requirements
As of 2024, Thailand's minimum wage varies by province, ranging from THB 328 to THB 600 per day (approximately $9 to $17). The minimum wage is set by the Thai government and is subject to periodic reviews.
Thailand operates a progressive income tax system for individuals. The tax brackets for residents as of 2024 are:
Up to THB 300,000: 0%
THB 300,001 to THB 500,000: 15% on the excess over THB 300,000
THB 500,001 to THB 1,000,000: 20% on the excess over THB 500,000
THB 1,000,001 to THB 2,000,000: 25% on the excess over THB 1,000,000
THB 2,000,001 to THB 5,000,000: 30% on the excess over THB 2,000,000
Above THB 5,000,000: 35% on the excess over THB 5,000,000
Employers are required to withhold income tax from employee salaries and remit it to the Revenue Department.
Individual Income Tax
Payroll Cost
The employer cost is generally estimated at 5.3% of the employee's salary.
Payroll costs in Thailand include gross salaries and mandatory contributions:
Social Security Fund (SSF): Employers contribute 5% of the employee's salary, with a cap based on a maximum salary of THB 15,000 per month.
Workmen's Compensation Fund: Rates vary depending on the industry but typically range from 0.2% to 1.0% of the employee's salary.
Total payroll costs can significantly exceed the gross salary due to these contributions.
Overtime Pay & Maximum Hours
The standard working hours in Thailand are 48 hours per week (typically 8 hours per day for 6 days). Overtime is compensated as follows:
Overtime pay is calculated at:
1.5 times the regular hourly rate for regular working days.
3 times the regular hourly rate for public holidays.
Leave Policy
Maternity Leave
Female employees are entitled to 98 days of maternity leave, with at least 45 days paid. The employee will receive 100% of the salary for the first 45 days, and the employer will be responsible for this pay. The remaining leave is paid for at 50% of the employee's salary by social security.
Paternity Leave
Fathers are entitled to 15 days of paid paternity leave.
Parental Leave
In Thailand, no law covers parental leave. However, employees may be entitled to maternity and Paternity leave.
Sick Leave
Employees are entitled to 30 days of paid sick leave per year, subject to medical certification.
Termination
Termination Requirements
Terminations in India cannot be carried out “at will”. Termination must follow specific legal procedures:
Valid reasons for dismissal include misconduct, redundancy, and performance issues.
Employers must provide written notice or compensation in lieu of notice.
Compliant terminations include:
Voluntarily by the employee
By mutual agreement
Unilaterally by the employer based on:
probation period
objective grounds
disciplinary dismissal
performance due to unsuitability for the job
By expiration of the contract
Notice Period
The notice period varies based on the length of employment:
Less than 120 days: 1 day notice.
120 days to 1 year: 30 days notice.
More than 1 year: 30 days notice.
Severance for Employees
Severance pay is required under certain conditions, such as termination due to redundancy or authorized causes. The calculation is as follows:
30 days’ salary for employees with less than 6 months of service.
90 days’ salary for employees with 6 months to 1 year of service.
180 days’ salary for employees with 1 to 3 years of service.
240 days’ salary for employees with 3 to 6 years of service.
Statutory Time Off
Paid Time Off
PTO is established in the employment agreements. The minimum PTO is 18 days.
Public Holidays
Employees are entitled to the following public holidays in Thailand:
New Year's Day
Makha Bucha Day
Chakri Memorial Day
Songkran Festival
Labor Day
Visakha Bucha Day
Asanha Bucha Day
Buddhist Lent Day
King's Birthday
Queen's Birthday
King Bhumibol Memorial Day
Chulalongkorn Day
King's Birthday
Constitution Day
New Year's Eve
Disclaimer
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. Anemone HR disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. Anemone HR periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. Anemone HR disclaims all liability for the privacy practices or the content of such websites.