Employer of Record in Thailand

Basic information

Currency：Thai Bat

Capital：Bangkok

Official Language：Thai

Salary Payment：Monthly

Localized benefits for employees

• Social Security+Workmen Compensation Fund(WCF)
• Private Healthcare – Allianz (optional)

Pay&Tax

1. Minimum Wage Requirements  The minimum wage is THB 363 per day or 10,890 per month for Bangkok Province.  The minimum wage is THB 370 per day or 11,100 per month for Puket Province.  (Efficetived from 1st Jan 2024)
2. Individual Income Tax  The individual income tax ranges from 0% to 35%. Income tax is calculated according to progressive rates.

3. Payroll Cost  The employer cost is generally estimated at 5% of the employee’s salary
   • Social security: 5%*
     *Capped at a maximum contribution of THB 750  The WCF’s contribution rates are between0.2% -1.0% of wages.  * contribution of THB 480-2400 per year per person
4. Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week from Monday to Friday. The standard work week is from 09:00 to 18:00 with an hour break. However, employees can work from Monday to Saturday with a working week of 48 hours.

Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 36 hours of overtime a week. For additional hours, employees are paid:

• 150% of the hourly rate for overtime during a normal working day.
• 200% of the hourly rate, for work undertaken during a holiday
• 300% of the hourly rate, for overtime work undertaken during a holiday

Managers and supervisors can be exempt of overtime pay if in their job description includes a supervisory authority.

Leave policy

1. Maternity Leave

Employees are entitled to 98 days of paid leave. 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.

2. Paternity Leave

In the private sector, there is no paid paternity leave by statute in Thailand, although employers are free to offer paid/unpaid time off.

3. Parental Leave

In Thailand, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

4. Sick Leave

Employees are entitled to paid sick leave for up to 30 days. The employee will receive 100% of their salary from the employer.

Additional leave

  Employees are also entitled to leave for the following cases:

• Business Leave – 3 days per year with 100% pay by the employer.
• Military Service – 60 days per year (if the employee is required to go under military service).

Termination

1. Termination RequirementsTerminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Thailand can be complex. There is no at-will termination in Thailand for employers and termination must be done for just cause.

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

2. Notice Period  The minimum notice period is 0 days and will vary depending on the type of employment.
   • Termination with cause by the Employer – No notice
   • Termination without cause by the Employer – 30 days (even when in probation period)
3. Severance for Employees

Severance pay in Thailand is mandatory and will depend on the length of service. Severance pay is not due if the employee was terminated for serious misconduct.

Statutory time off

1. Paid Time Off

Both full-time and part-time employees are entitled to 6 working days of paid time off (PTO) a year. PTO accrues monthly at 0.5 days per month. Employees are eligible for annual leave after 12 months of work.

2. Public Holidays  Thailand celebrates 13 national holidays. National public holidays normally include:
   • New Year’s Day
   • Makha Bucha Day
   • Chakri Day
   • Songkran Festival
   • Labour Day
   • Coronation of King Vajiralongkorn
   • Visakha Bucha Day
   • Asarnha Bucha Day
   • Buddhish Lent
   • Queens Birthday
   • Chulalongkorn Memorial Day
   • Kings Birthday
   • Constitution Day

Onboarding

1. Onboarding  Onboarding takes 3 business days after the Scope of Work is signed. Mandatory documents must be completed one day before the start date.

Additional info

1. Employment Contract Details  Contracts can be in English or bilingual. They must be in writing and signed by both parties.  A contract must include:
   • name
   • start date
   • length of the employment
   • job description
   • termination conditions
2. Probation Period  The standard probation period is 90 days and the maximum probation period is 119 days.