Your quick guide on talent and labor compliance norms in Thailand
Capital
Bangkok
Currency
Thailand Baht (THB)
Languages
Thai (Official)
Payroll Frequency
Monthly
GDP per Capita
$8,780.88
Employer Tax
5%
Supplementary Guide for Employment and Expansion in Thailand
Benefits & Compensation
Background checks
Employment Act
Sole Proprietorship
Talent Overview
Thailand is known for its temples, culture, religion, and scenic beauty. Over the years, the country has boosted its economic development with tourism and industrialization. Out of 39 countries in the Asia-Pacific region, Thailand holds the 13th position for overall economic growth.
Major economic hubs:
Bangkok, Chiang Mai, Pattaya, Phuket
Skills in demand:
Skilled Trades, Sales Representatives, Drivers, Technicians, IT
Local Universities
The top local universities in Thailand are as follows:
Local: 1
World : 416
Local: 2
World : 596
Local: 3
World : 824
Local: 4
World : 855
Local: 5
World : 1089
Salary Data
The average monthly salary in Thailand is mentioned below:
| Job Title | Average Monthly Salary (THB) | Average Monthly Salary (USD) |
| Database Administrator | 103,000 THB | 3,023 USD |
| Project Manager | 117,000 THB | 3,433 USD |
| Business Development Manager | 155,000 THB | 4,548 USD |
| Accounting Manager | 144,000 THB | 4,226 USD |
| Developer / Programmer | 96,600 THB | 2,834 USD |
| Network Engineer | 83,800 THB | 2,459 USD |
Talent Sourcing Tips
4,576,000
EPS recruitment, Fame Placement Co. Ltd, Fischer and Partners
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 contracts in Thailand can be oral or written. The language must be in Thai for local employees and in English for foreign workers.
Thai employees are given up to 4 months of probationary period.
| 2024 Date | Holiday Name |
| January 1 | New Year’s Day |
| February 24 | Makha Bucha Day |
| April 6 | Chakri Day |
| April 13 | Songkran Festival |
| May 1 | Labor Day |
| May 4 | H.M. King’s Coronation |
| May 22 | Visakha Bucha |
| June 3 | H.M. Queen’s Birthday |
| July 20 | Asahna Bucha |
| July 28 | King Vajiralongkorn’s Birthday |
| August 12 | The Queen Mother’s Birthday |
| October 13 | His Majesty the Late King |
| October 23 | Chulalongkorn Day |
| December 5 | King Bhumibol’s Birthday |
| December 10 | Constitution Day |
| Type of Leave | Time Period | Mandatory |
| Annual/Earned Leave | 6 days | Yes (After One year of Completion) |
| Sick Leave | 30 days | Yes |
| Maternity Leave | 98 days | Yes |
Payroll
Payroll Cycle
The payroll cycle in Thailand is usually monthly, depending on what is stated in the contract.
Minimum Wage
The minimum wage varies per region, ranging from 322 THB to 354 THB.
Bonus
The 13th-month pay is not mandatory in Thailand.
In Thailand, employees are entitled to benefits that employers indicate in employment contracts. Below are some of them:
Taxes
| Category | Contribution | Maximum |
| Social Security* | 5% | Maximum up to 750 THB/ Month |
| Worker’s Compensation | 0.2% – 1% | Maximum 240,000 Baht per person per year |
*Social security in Thailand covers 7 benefits: Sickness, Maternity, Invalidity, Death, Child allowance, Unemployment, Retirement
| Category | Contribution | Maximum |
| Social Security | 5% | Maximum up to 750 THB/ month |
| Taxable Amount | Tax rate |
| 0 – 150,000 THB | Exempt |
| 150,001 to 300,000 THB | 5% |
| 300,001 to 500,000 THB | 10% |
| 500,001 to 750,000 THB | 15% |
| 750,001 to 1,000,000 THB | 20% |
| 1,000,001 to 2,000,000 THB | 25% |
| 2,000,001 to 5,000,000 THB | 30% |
| Above 5,000,000 | 35% |
Thailand has a standard VAT of 7%.
Offboarding & Termination
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.
The severance pay is based on the years of service by the employee.
| Years of Service | Severance Pay |
| 120 days to 364 days | 30 days pay |
| 1 year to 2 years and 364 days | 90 days pay |
| 3 years to 5 years and 364 days | 180 days pay |
| 6 years to 9 years and 364 days | 240 days pay |
| More than 10 years | 300 days pay |
Visa and Immigration
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.
The overtime pay in Thailand:
| Period | Rate |
| Normal Days | 1.5 times the hourly rate |
| Normal working hours on Holidays | 2 times the hourly rate |
| Overtime on Holiday | 3 times the hourly rate |
