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Thailand

Payroll and Benefits Guide

Last updated:
Dec 8, 2022

Table of contents

Overview COVID-19 Contributions Minimum Wage Payroll Working Hours Leave Termination Common Benefits VISA VAT

Overview

Capital
Bangkok
Currency
Thai Bhat (THB)
Date Format
dd/mm/yyyy
Fiscal Year
1 October - 30 September
Payroll Frequency
Monthly
Employer Taxes
5.20% - 6.00%

COVID-19

The monthly Social Security contributions for employees has been reduced to 0.5% in February and March. The reduced rate of 3.0% for employers will remain for the months of February and March.

Contributions

Employer

Employer Payroll Contributions

3.00% Pension
1.50% Health Insurance
0.50% Unemployment
0.20%-1.00% Work Injury
5.20% - 6.00% Total Employment Cost

Employee

Employee Payroll Contributions

3.00% Pension
1.50% Health Insurance
0.50% Unemployment
  All employees are required to contribute to a social security fund an amount equal to 5% of their salary, up to a maximum contribution of 750 THB per month.
5.00% Total Employee Cost

Employee Income Tax

0.00% 0 to 150,000 THB
5.00% 150,001 to 300,000 THB
10.00% 300,001 to 500,000 THB
15.00% 500,001 – 750,000 THB
20.00% 750,001 – 1,000,000 THB
25.00% 1,000,001 – 2,000,000 THB
30.00% 2,000,001 – 5,000,000 THB
35.00% 5,000,001 THB and above

Minimum Wage

General

The National Minimum Daily Wage in Thailand varies by region within Thailand, ranging from 313THB (in Narathiwat, Pattani & Yala) to 336 THB (in Phuket & Chonburi).

 

Payroll

Payroll Cycle

The payroll cycle in Thailand is generally monthly and is usually paid on the last working day, as agreed within the employment contract.

13th Salary

There is no statutory requirement for a 13th-month salary payment in Thailand.

 

Working Hours

General

By law in Thailand, the maximum number of working hours is 8 hours per day and 48 hours per week.

On working days, an employer shall arrange a rest period during work for its employees of not less than one hour per day after the employee has been working for not more than five consecutive hours.  

Overtime

All work more than the standard working hours a week is to be paid as overtime and is regulated by employment contract/collective agreements.  

Overtime is generally paid at a rate of 150.00% of the regular salary rate.

Overtime is generally paid at a rate of 200.00% of the regular salary rate for working on a public holiday.

Working Week

Monday–Saturday

 

Leave

Paid Time Off

Paid leave in Thailand is set in the employment contract as at least six days of paid annual leave per year after completing one full year of employment. For employees who have not completed one year of service, the employer may provide a yearly leave on a pro-rate basis.

Public Holidays

16 public holidays.

Sick Days

All employees are entitled to unlimited sick leave, but the number of days paid sick leave shall not exceed 30 days per year. The employer may require an employee to produce a certificate from a qualified medical professional for a sick leave of three days or more.

Maternity Leave

Employees are entitled to 98 days maternity leave, paid at 100.00% of the regular salary rate of pay for 45 days. The remaining days are paid at 50.00% of the regular salary rate by social security.

Paternity Leave

An employee’s entitlement to paternity leave is dependent on the sector in which they work.  The private sector has no statutory paternity leave; however, the employees in the public sector are entitled to 15 days of paternity leave.

Parental Leave

There is no statutory Parental leave in Thailand.

Other Leave

In Thailand, an employer must pay wages to an employee for military service leave, but not exceeding sixty days per year.

 

Termination

Termination Process

The termination process is standard in Thailand is based on the labor law requirements, unless an employer can provide sufficient cause for dismissal without notice (i.e. due to misconduct).

Notice of termination must be in writing and sent to the relevant governmental authorities.

If employers suspend their business temporarily for a cause other than a force majeure, they pay to the employee 50 percent of the daily wage he or she received before the suspension of the business. The payment is given to the employee for the whole period his or her services are not required.

Notice Period

Notice periods within Thailand are generally 30 days, although employers can specify longer notice periods within the employment contract.

Severance Pay

In Thailand, severance pay is mandatory if applicable and determined by the employee’s length of service. Employees working for less than 120 days for the same employer are not eligible to receive any severance payment.

  • Employees with more than 120 days of service but less than one year are entitled to 30 days severance pay.
  • Employees with service of 1 year but less than three years are entitled to 90 days of severance pay.
  • Employees with three years but less than six years are entitled to 180 days severance pay.
  • Employees with six years but less than ten years are entitled to 240 days severance pay.
  • Employees with service of 10 years but less than 20 years are entitled to 300 days severance pay.
  • Employees with 20 years or more are entitled to 400 days severance pay.

Probation Period

The probation period in Thailand for permanent employees is officially not required. However, as Thai law specifies, the payment of severance pay for employees who have worked for 120 days or more and are terminated without cause, it is common for employers to set probation periods of up to 119 days.

 

VISA

VISA

For short-term work activities conducted for up to 15 days, the appropriate​ work authorization is the Urgent Work Permit (UWP). The UWP may be extended for another 15 days if the urgent work is not completed during the initial 15-day period. ​Except for visa-exempt nationals, foreign nationals seeking a UWP must obtain a Non-Immigrant B visa before entry.

For work activities that exceed 30 days, a Work Permit is required. The Work Permit can be granted for ​one to four years, depending on the company’s status in Thailand. All foreign nationals intending to obtain a Work Permit, including visa-exempt nationals, must obtain a Non-Immigrant B visa before entry.​​ 

 

VAT

General

The standard rate of VAT in Thailand is 10%, but the rate is currently reduced to 7% until 30 September 2023 (unless further extended by the government).

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