Payroll and Benefits Guide Thailand
Last updated: May 16, 2023
Employer Payroll Contributions
|5.20% – 6.00%||Total Employment Cost|
* Expatriate workers will require private health cover
Employee Payroll Contributions
|5.00%||Total Employee Cost
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.
Employee Income Tax
0 to 150,000 THB
150,001 to 300,000 THB
300,001 to 500,000 THB
500,001 – 750,000 THB
750,001 – 1,000,000 THB
1,000,001 – 2,000,000 THB
2,000,001 – 5,000,000 THB
5,000,000 THB and above
The national minimum daily wage in Thailand varies by region within Thailand, ranging from 328THB (in Narathiwat, Pattani & Yala) to 354 THB (in Phuket & Chonburi).
MINIMUM WAGE (PER MONTH)
The payroll cycle in Thailand is generally monthly and is usually paid on the last working day as agreed within the employment contract.
There is no statutory requirement for a 13th-month salary payment in Thailand.
By law in Thailand, the maximum number of working hours is eight hours per day, 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 no more than five consecutive hours.
A total of 36 overtime hours can be worked in a week paid at a rate of 150% of the salary on regular working days, and a rate of 200 to 300% salary on holidays.
Management roles are generally exempt from overtime requirements.
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-rata basis. A leave carryover policy can be agreed upon in advance between the employer & employee.
Public holidays falling on weekends are moved to another day in lieu.
*Chinese New Year, Christmas Day, and the end of Ramadan are observed in Narathiwat, Pattani, Yala, and Satun provinces only.
*Labour Day is observed by all sectors except the government sector.
*Royal Ploughing Ceremony and Khao Phansa Day are observed by the government sector only.
All employees are entitled to unlimited sick leave, but the number of days paid sick leave shall not exceed 30 days per year covered by the employer. The employer may require an employee to produce a certificate from a qualified medical professional for a sick leave of three days or more.
Employees are entitled to 98 days of 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.
PAID MATERNITY LEAVE (DAYS)
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, employees in the public sector are entitled to 15 days of paternity leave.
There is no statutory parental leave in Thailand.
In Thailand, an employer must pay wages to an employee for military service leave, but not exceeding 60 days per year.
Employment can be terminated in Thailand where their is ‘just cause’, which includes reasons of criminal offence, employee caused willful damage, negligence causing serious damage to employer/put others at risk, employee violated work rules, regulations or orders even with written warning from employer, employee was absent for 3 consecutive days without notice or any justifiable reason or the employee is sentenced to imprisonment.
For termination without ‘just cause’, there is a high likelihood of the terminated worker filing a claim of unfair dismissal with the labour court and the Thai law tends to be more favorable to the worker’s claim.
Once employment has been terminated, the employer must notify the Social Security Office. When the termination concerns a foreign worker, the employer must notify the Immigration Bureau and The Department of Employment of the Ministry of Labour.
Termination payments, including current month salary, unused annual leave and severance pay must be paid to the employee within three days of the date of termination.
Notice periods within Thailand must be given in advance and in writing. The length of notice is generally for a period of 30 days, although employers can specify longer notice periods within the employment contract, and notice must be given before the
date wages are due in order to take effect the following wages due date. Payment in lieu of notice is also possible.
In Thailand, severance pay is mandatory if applicable and determined by the employee’s length of service. Employees working for fewer than 120 days for the same employer are not eligible to receive any severance payment.
Employees with less than 120 days of service are not entitled to severance pay.
Employees with more than 120 days of service but fewer than one year are entitled to 30 days of severance pay.
Employees with service of one year but fewer than three years are entitled to 90 days of severance pay.
Employees with three years but fewer than six years are entitled to 180 days of severance pay.
Employees with six years but fewer than ten years are entitled to 240 days of severance pay.
Employees with service of 10 years but fewer than 20 years are entitled to 300 days of severance pay.
Employees with 20 years or more are entitled to 400 days of severance pay.
Severance does not need to be paid when a worker is terminated for cause.
There is no mandatory requirement to include a Probation period, however it is common to include a period of up to, and no more, than 4 months.
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 who must obtain a Non-Immigrant B visa before entry.
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).
Stay up to date on payroll & employment law changes
Questions & Answers
Public Holidays Calendar
|Sunday||Jan-1||New Year’s Day|
|Thursday||Mar-2||New Year’s Day Holiday||Day Off in Lieu|
|Monday||Mar-6||Makha Bucha Day|
|Thursday||Apr-6||Chakri Memorial Day|
|Saturday||Jun-3||H.M. Queen Suthida’s Birthday & Wisakha Bucha Day|
|Monday||Jun-5||H.M. Queen Suthida’s Birthday & Wisakha Bucha Day||Day Off in Lieu|
|Friday||Jul-28||H.M. King Maha Vajiralongkorn Phra Vajiraklaochaoyuhua’s Birthday|
|Tuesday||Aug-1||Asarnha Bucha Day|
|Saturday||Aug-12||H.M. Queen Sirikit’s Birthday|
|Monday||Aug-14||H.M. Queen Sirikit’s Birthday Holiday||Day Off in Lieu|
|Friday||Oct-13||H.M. King Bhumibol Adulyadej The Great Memorial Day|
|Monday||Oct-23||Chulalongkorn Memorial Day|
|Tuesday||Dec-5||H.M. King Bhumibol Adulyadej The Great’s Birthday|
|Tuesday||Dec-12||Constitution Day Holiday||Day Off in Lieu|