It is important that employers look into the country’s employment laws and regulations when onboarding people from Thailand. Some of the policies that Thailand observes for the local employees are explained below.
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
Employee contracts in Thailand can be oral or written. The language must be in Thai for local employees and in English for foreign workers.
Probation Period
Thai employees are given up to 4 months of probationary period.
13th Month Pay
The 13th-month pay is not mandatory in Thailand.
Employee Benefits
Employers in Thailand may provide the following benefits to their employees:
- Workmen’s Compensation Fund
- Medical Insurance
- Group Life Insurance
- Old age benefit
The payroll cycle in Thailand is usually monthly, depending on what is stated in the contract.
The minimum wage varies per region, ranging from 322 THB to 354 THB.
Overtime pay in Thailand is 1.5 times the hourly rate on normal days, 2 times the hourly rate for normal working hours on holidays, and 3 times the hourly rate for overtime on holidays.
Employer Payroll Cost:
| Category |
Contribution |
Maximum |
| Social Security* |
0.05% |
Maximum up to 750 THB/ Month |
| Worker’s Compensation |
0.2% – 1% |
Maximum 240,000 Baht per person per year |
Employee Payroll Cost:
| Category |
Contribution |
Maximum |
| Social Security |
0.05% |
Maximum up to 750 THB/ month |
Employee Income Tax
| Taxable Amount |
Tax rate |
| 0 – 150,000 THB |
Exempt |
| 150,001 to 300,000 THB |
0.05 |
| 300,001 to 500,000 THB |
0.1 |
| 500,001 to 750,000 THB |
0.15 |
| 750,001 to 1,000,000 THB |
0.2 |
| 1,000,001 to 2,000,000 THB |
0.25 |
| 2,000,001 to 5,000,000 THB |
0.3 |
| Above 5,000,000 |
0.35 |
VAT
Thailand has a standard VAT of 7%.
Termination of the contract may be initiated by either the employer or the employee, and either party shall issue notice. However, if the employee has a fixed contract, a notice is unnecessary when the contract expires.
Thai employees under probation are given a notice period of up to 30 days. After probation, they are to observe a notice period of up to 3 months when terminating their employment.
Severance pay
Severance pay in Thailand: After 120 days of service, 30 days to 400 days' wages are paid at the time of dismissal, depending on the number of years of service, except for gross negligence.
To legally work in Thailand, foreign employees must first acquire a Non-immigrant visa B which can be either a 90-day single entry or 1-year multiple entries. This can be extended as well as cancelled on certain conditions by the embassy. After which, a foreign employee can apply for a work permit.