Payroll & Employment Guide Thailand

Employment contracts in Thailand can be verbal or written, though written contracts are recommended. They should clearly define the job scope, salary, working hours, probation terms, and benefits.

Notice periods: At least 1 month.

Termination of employment: Allowed under mutual agreement, resignation, or justified dismissal. Severance pay may apply.

Thai labour law mandates a set of statutory benefits that employers must offer, along with additional perks to stay competitive.

• Mandatory benefits: Social security (Covers healthcare, pensions, and unemployment benefits), severance pay, etc.
• Common perks: Additional leave, health and wellness, bonuses, flexible working hours, professional development, transportation allowances, and meal allowances.
• Leave policies: Annual leave, sick leave, maternity leave, public holidays, and necessary business leave.

Thailand applies taxes to both individual employees and employers. Employers are responsible for withholding income tax and submitting both employee and employer contributions.

• Personal income tax: In Thailand, Personal Income Tax (PIT) is applied on a progressive scale from 0% to 35%, depending on income level. The lowest band, up to THB 150,000, is tax-free, with rates gradually increasing for higher income brackets. Taxable income over THB 5 million is taxed at the highest rate of 35%. Individuals can reduce their taxable income through deductions and allowances, including personal and dependent allowances, as well as social security contributions.
• Social security contributions: Both employers and employees contribute to the Social Security Fund, typically at a rate of 5% of the employee's salary, capped at a certain amount.
• Corporate income tax: Employers must pay corporate income tax on their profits, generally at a rate of 20%.

Thai employers must follow labour laws on payment schedules and payroll documentation. While there’s flexibility in how often salaries are paid, clear written agreements are crucial.

Salary payment deadline: No fixed legal date, based on contract agreement

Taxes and contributions payment deadline: By the 15th of the following month

Payroll declarations deadline: Payslips must be issued after each salary payment

Payroll currency: Thai Baht (THB)

Thailand’s labour regulations are governed by the Labour Protection Act, which outlines key employer responsibilities and worker protections.

Total employment cost:

• Employer’s social security contributions: 5%
• Employees’ social security contributions: 5%

Minimum wage: THB 337–400/day, depending on region

Probation period: Up to 119 days

EOR services in Thailand enable you to legally employ individuals in the country without opening legal entities. Your EOR will take over all the legal responsibilities as an official employer, including:

• Legal employment and contracts
• Payroll processing
• Tax withholding
• Benefits administration
• Onboarding/offboarding employees

PEO services in Thailand provide HR and administrative support, while you remain the legal employer for your team. They are ideal for employers who already have legal entities in Thailand but need support to manage their workforce operations, including:

• HR support and workforce administration
• Payroll and benefits management
• Compliance and local labour law guidance
• Employment contracts assistance

Native Teams’ payroll calculators are adjusted to 85+ countries’ local labour laws, including Thailand. Using our calculator, you can easily estimate net and gross salaries, employer/employee contributions, and other mandatory deductions in the country.