Employing in Thailand
Thailand’s employment legal framework is chiefly regulated by the Labor Protection Act B.E. 2541 (1998) and its subsequent amendments, which set forth detailed provisions on employment contracts, working hours, minimum wages, overtime pay, employee benefits, workplace safety, and termination procedures including severance pay. This framework is complemented by relevant sections of the Thai Civil and Commercial Code, the Labor Relations Act, the Social Security Act, and the Occupational Safety, Health and Environment Act. Employers with ten or more employees are required to establish and publicly post comprehensive work rules that cover working conditions, leave policies, disciplinary measures, and termination protocols. The Ministry of Labor enforces these laws to ensure equitable treatment across various categories of workers-including permanent, temporary, part-time, and foreign employees.
Onboarding time
Minimum Wage
Employer costs
Employee costs
Onboarding time
Team APAC can onboard your talents within an average of 480 hours.
Minimum Wage
The monthly minimum wage is THB 12,000 as of January 2025.
Employer costs
- Social Security (including pension) – 3%
- Health Insurance – 1.5%
- Unemployment Insurance – 0.5%
- Work Injury Insurance – 0.2 to 1%
Employee costs
- Social Security – 3%
- Health Insurance – 1.5%
- Unemployment Insurance – 0.5%
Payroll
The payroll process in Thailand includes gathering employee information and calculating gross pay based on the agreed-upon salary, which must meet or exceed the minimum wage requirements. Companies need to withhold appropriate taxes and deductions.
Payroll cycle
Employers must pay salaries at least once a month on the last working day of the month.
Payroll calculations
Employers calculate the gross salary, which includes the basic salary plus any taxable allowances. They then withhold personal income tax. Both employers and employees contribute to the Social Security Fund. Payroll must also consider authorized deductions such as provident fund contributions and loan repayments if applicable. After these deductions, the net salary is determined and paid to employees, commonly through bank transfer, cash, or cheque.
Compliance requirements
Employers are required to provide detailed payslips showing gross salary, deductions, and net pay on or before payday. Employers must register employees with the Social Security Office and Workmen’s Compensation Fund within 30 days of hiring and submit monthly tax withholdings to the Thai Revenue Department. Year-end tax reconciliations ensure compliance with tax laws.
Additional payments
13th Salary
In Thailand, it is not mandatory to pay a 13th-month salary.
Bonuses
There is no legal requirement that employers provide employee bonuses.
Commissions
In Thailand, commissions are typically payments made to employees or agents based on sales or transactions they facilitate.
Other allowances
While not compulsory, employers commonly provide a provident fund to encourage retirement savings. The employer’s contributions to this fund are required to be equal to or exceed those made by the employee.
Taxes
Employment income tax in Thailand applies to salaries, wages, bonuses, and other compensation for personal services provided to employers. Residents, or individuals spending 180 days or more in Thailand during a tax year, are taxed on their worldwide income, regardless of when it is remitted to Thailand. Non-residents are taxed only on income sourced within Thailand, typically at a flat 15% rate on employment income unless otherwise specified by contract.
Employee Income Tax
Thailand employs a progressive personal income tax system for residents, with rates in 2025 ranging from 0% to 35% based on taxable income brackets. Income up to THB 150,000 is exempt from tax. Beyond this threshold, tax rates increase progressively: 5% on income between THB 150,001 and 300,000; 10% on THB 300,001 to 500,000; 15% on THB 500,001 to 750,000; 20% on THB 750,001 to 1,000,000; 25% on THB 1,000,001 to 2,000,000; 30% on THB 2,000,001 to 4,000,000; and 35% on income exceeding THB 4,000,000.
Income Tax
- 5% – between THB 150,001 and 300,000
- 10% – between THB 300,001 and 500,000
- 15% – between THB 500,001 and 750,000
- 20% – between THB 750,001 and 1,000,000
- 25% – between THB 1,000,001 and 2,000,000
- 30% – between THB 2,000,001 and 4,000,000
- 35% – income exceeding THB 4,000,000
Employment eligibility
Foreign nationals wishing to work in Thailand must first secure a work permit from the Ministry of Labour, which requires holding a valid Non-Immigrant “B” visa before applying. Applicants need a confirmed job offer from a registered Thai company, with the job position not falling into prohibited categories such as legal services, agriculture, or construction, unless specific exemptions apply (e.g., companies promoted by the Board of Investment). Employers must adhere to regulations including maintaining a prescribed ratio of Thai to foreign employees, as well as meeting minimum capital and salary requirements. The application process involves submitting documents such as the applicant’s passport, employment contract, company registration, tax documents, medical certificate, and educational credentials. Approval is discretionary and depends on compliance with Thai labor laws, and the issued work permit restricts the foreign national to the specified job and employer. Furthermore, the foreign employee is required to carry the work permit during working hours and comply with all conditions outlined in the permit.
Visa
The Non-Immigrant “B” visa permits entry and residence for employment purposes, while the work permit, issued by the Ministry of Labour, authorizes the individual to work in a specific role for a designated employer. To qualify, applicants must hold the appropriate visa, have sponsorship from an employer, and be employed in an occupation allowed for foreigners. Employers are required to submit company registration documents, tax payment proof, and an employment contract as part of the application. The work permit application typically takes about one week to process and is generally valid for one year, with annual renewal necessary.
Certain exceptions and expedited procedures apply to BOI-promoted companies and highly skilled professionals. Non-compliance with these rules can lead to fines or interruptions in employment.
Visa types
Thailand offers several types of work visas and permits for foreign nationals seeking employment in the country. Here are some of the main types.
Non-Immigrant Work Visas:
- Non-Immigrant B Visa (Business Visa)
- Non-Immigrant B-A Visa (Business Approved Visa)
- Non-Immigrant IB Visa (Investment and Business Visa)
- Non-Immigrant M Visa (Media Visa)
- Non-Immigrant EX Visa (Specialist/Expert Visa)
- Non-Immigrant RS Visa – for scientific research, training, or teaching in Thai research institutes.
- Non-Immigrant F Visa – for foreigners performing official duties with government agencies, embassies, or international organizations
- Non-Immigrant O Visa – generally for family visits
Smart Visas:
- Smart T (Talent) – for experts with a job contract and minimum salary requirements.
- Smart I (Investor)
- Smart E (Executive) – for senior executives with experience and a high salary.
- Smart S (Startup) – for startup founders or shareholders with financial and role requirements.
Long-Term Resident (LTR) Visa:
- Designed for highly skilled professionals, remote workers, retirees, and wealthy individuals meeting specific criteria, offering longer validity (up to 10 years) and benefits.
Compliance documents
The employee must provide:
- Valid passport
- Recent passport-sized photographs
- Certificate of health
- Proof of relevant work experience and educational qualifications
- Licenses or certificates related to the job, if applicable
- Medical certificate and address in Thailand
The employer must provide:
- Company registration documents
- Tax records including VAT and withholding tax certificates
- Social security documentation
- List of shareholders
- Employment contract specifying position and salary
- Office map and company objectives
Background check
In Thailand, visa-related background checks are mainly carried out by the Thai Immigration Office and the Royal Thai Police, particularly for visa categories like the Thai Elite Visa. Applicants are required to submit comprehensive personal details, including their full name, passport information, home address, and visa history. The background check evaluates criminal records both domestically and internationally, previous visa statuses, any overstays, bankruptcies, and records of removal or blacklisting. This process generally takes between 4 to 6 weeks and serves as due diligence to confirm that applicants have no serious criminal convictions or immigration violations. Employers and agencies may request criminal background checks for employment or visa purposes, but these require the applicant’s consent and must comply with Thai privacy and labor laws. Working illegally without the proper permits is a criminal offense in Thailand, punishable by fines, imprisonment, and deportation.
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Benefits
In Thailand, mandatory employee benefits include life and death coverage, disability benefits, medical treatment, maternity benefits, child allowances, old-age benefits, workmen’s compensation, unemployment benefits, and social security contributions, with both employer and employee contributing Employees are guaranteed a minimum paid annual leave, paid annual sick leave, and maternity leave. These statutory benefits primarily apply to full-time employees and are strictly enforced to prevent misclassification. Workers receive one day off per week and are protected against workplace injuries through the Workers’ Compensation Fund.
Beyond these mandatory provisions, many employers offer voluntary benefits such as group life insurance, group medical insurance, retirement benefits including provident funds with matched contributions and tax advantages, private pension plans, and retirement bonuses.
Private health insurance
Private health insurance is commonly provided and widely used in Thailand, especially among foreign workers, and those who prefer faster and higher-quality medical care.
Team APAC providers
We offers multiple health insurance options, allowing customers to choose between International Health Insurance, providing worldwide coverage on a pay-and-claim basis, or a Local Health Insurance, which offers a cashless access to treatment within the provider’s network. We offer the flexibility to cover either the employee only (single option) or the employee and their dependents (family option), tailored to meet the specific needs of your team.
- SafetyWing
- Allianz
Mandatory benefits
Statutory benefits include social insurance, health insurance, unemployment insurance, and paid leaves.
Mandatory benefits in Philippines
- Social Security Fund Contributions (which cover Sickness and medical treatment, Maternity benefits, Disability benefits, Death and life coverage, Child allowance/support, Old age pension/retirement benefits, Unemployment benefits)
- Workmen’s Compensation
- Paid Leaves (i.e. annual leave, sick leave, maternity leave, and personal business leave)
Working hours
Thai law establishes regular working hours of eight per day and 48 per week. For hazardous work, the regular workday cannot exceed seven hours and the regular workweek cannot exceed 42 hours.
An employee is entitled to a rest period of at least one hour after working five consecutive hours. The rest period is not counted as working time. If an employer has requested overtime work of at least two hours, the employee also is entitled to a 20-minute rest period before beginning the overtime work.
Working hours per day
The standard workday is 8 hours.
Working hours per week
The standard workweek is 48 hours.
Overtime pay
Overtime pay is mandatory for work exceeding 48 hours per week, calculated at 150% of the hourly wage.
Leave
Thailand’s statutory leave provisions are mainly governed by the Labor Protection Act (LPA). It covers all paid leaves such as annual leave, sick leave, maternity leave, military leave, and personal business leave.
Employees are also entitled to at least three days of personal business leave per year, which may be unpaid and cannot be deducted from annual leave. Leaves such as bereavement, jury duty, and voting are not mandated by Thai law and depend on individual employer policies.
Additionally, employers with 10 or more employees must establish and publish work rules, including leave policies, and submit these to labor authorities to ensure compliance with employment terms.
Annual leave
Employees who have completed one continuous year of service are entitled to a minimum of six days of paid annual leave, which the employer must schedule in advance without needing the employee’s consent (Section 30 LPA). Unused annual leave can be carried over to subsequent years, and employers are prohibited from refusing this or deducting entitlements; employees have up to two years to claim wages for unused leave.
Employers may grant additional vacation time in subsequent years. Employers may grant vacation on a pro rata basis to employees who have not completed a full year of service.
Sick leave
Sick leave in Thailand is unlimited in duration, but payment is limited to 30 days per year. For absences of three or more consecutive days, a medical certificate from a qualified physician is required.
Parental leave
There is no law requiring employers to provide parental leave.
Maternity leave
Maternity leave is granted for up to 98 days per pregnancy, with pay provided during this period.
Paternity leave
There is no provision for mandatory paternity leave for private-sector employees.
Long service leave
Currently, there is no law requiring additional leaves relative to long service leave.
Compassionate leave
Currently, there is no law requiring compassionate leave.
Family & domestic violence leave
Currently, Thailand does not provide a formal family and domestic violence leave entitlement for employees.
Other leaves
Employees are entitled to leave for personal reasons, military service, sterilization, and training.
Military leave is allowed for up to 60 days annually with pay.
Termination
In Thailand, employment termination is primarily governed by the Labour Protection Act B.E. 2541 (1998), the Labour Relations Act B.E. 2518 (1975), and the Civil and Commercial Code.
Terminations must be lawful, supported by documented reasons, and employees have the right to challenge unfair dismissals through legal claims. Overall, the framework emphasizes protection against unfair dismissal by requiring employers to follow due process and maintain clear documentation to prevent legal disputes.
Termination process
Employers must also fulfill procedural duties, including issuing dismissal notices, settling all owed wages, severance, unused leave, and notifying authorities like the Social Security Office.
When an employee is terminated, the employer must pay within three days all accrued wages, overtime, holiday pay, holiday overtime pay, and compensation for vacation time accrued prior to the year of termination but not yet taken.
Termination reasons
Employers can terminate contracts based on just cause, such as gross misconduct, criminal offenses, or serious breaches of company rules.
Notice period
Employers are required to give a minimum of 30 days’ written notice or provide payment in lieu of notice when terminating an employee without cause.
If an employer decides to terminate employees as a result of business restructuring due to automation or changes in machinery or technology, the Labor Inspection Office and affected workers must be given at least 60 days’ notice. If the employer fails to provide 60 days’ notice, terminated employees are entitled to 60 days’ pay in lieu of notice in addition to their regular severance.
Severance Pay
If not terminated for cause, the employee also is entitled to payment on a pro rata basis for vacation earned in the year of termination and to severance pay in an amount determined by the employee’s length of service as follows:
- 120 days of continuous service to one year: 30 days’ wages,
- one to three years: 90 days’ wages,
- three to six years: 180 days’ wages,
- six to 10 years: 240 days’ wages,
- 10 years or more: 300 days’ wages, and
- 20 years or more: 400 days’ wages.
An employer is not required to pay severance, make a pro rata payment for vacation accrued during the year of termination or give advance notice if an employee is terminated for cause.
Probationary employees, within the first 119 days, may be dismissed without severance if there is valid cause.
Fixed-term contracts conclude automatically without severance unless improperly extended, which then converts the contract to a regular employment agreement.
Probation period
In Thailand, the probationary period for employees, whether Thai nationals or expatriates, is typically determined by the employer and agreed upon with the employee, with a maximum duration of 119 days (around four months). This limit is practical because if employment extends beyond 119 days, the employer becomes legally obligated to pay severance under Section 118(1) of the Labour Protection Act. The probation period serves as a trial phase for employers to evaluate the employee’s performance and suitability, while employees can assess their fit within the company.
Probation Period days
- 119 days maximum probation period (if agreed upon by employer and employee)
