Payroll and Benefits Guide - Thailand

Thailand
null

Currency

Thai Bhat (THB)
null

Capital

Bangkok
null

Employer Taxes

5.20% – 6.00%

null

Date Format

dd/mm/yyyy
null

Fiscal Year

1 Oct – 30 Sept

Fun Facts

Thailand was previously called Siam until 1939.

It is the only country in Southeast Asia that was never colonized by European powers.

The country is home to the world’s smallest mammal, the bumblebee bat, which is about the size of a thumbnail.

Blue Gradient Background Largest exporter of rice and is often referred to as the “Rice Bowl of Asia.”

Muay Thai, is originated in Thailand and is also the national sport.

Thailand is the 50th largest country in the world

Thailand

Contributions

Employee Payroll Tax

Contribution TypeRate
Pension3%
Health Insurance1.50%
Unemployment0.50%

Employer Payroll Tax

Contribution TypeRate
Pension3.00%
Health Insurance1.50%
Unemployment0.50%
Work Injury0.20%-1.00%

Payroll

Payroll Cycle

The payroll cycle is monthly

13th Salary

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

Work Hours and Week

Maximum number of working hours is 8 hours per day, 48 hours per week. Monday to Saturday

Overtime

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.
Thailand

Leave

Paid Time Off

At least six days of paid annual leave per year after completing one full year of employment.

Public Holidays

There are 19 national holidays.

Sick Days

Paid sick leave shall not exceed 30 days per year covered by the employer.

Maternity Leave

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.

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, employees in the public sector are entitled to 15 days of paternity leave.

Parental Leave

There is no statutory parental leave in Thailand.

Termination

Termination Process

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

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

Notice Period

Notice periods within Thailand are generally 30 days, although employers can specify longer notice periods within the employment contract (see EoR page for specific notice periods under the EoR).

Severance Pay

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.

Probation Period

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 typically get 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.

VAT

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).