Thailand Employment Law & Compliance Guide for Employers
Key employment laws in Thailand: what employers need to know
Employment in Thailand is governed mainly by the Labour Protection Act B.E. 2541 (1998), the Social Security Act B.E. 2533 (1990) and the Revenue Code, while foreign workers fall under the Emergency Decree on Managing the Work of Foreigners B.E. 2560 (2017). Foreign employers are most often surprised by statutory severance of up to 400 days’ wages, which also applies on retirement, and by the capital and Thai-staff tests for work permits. This page summarises the core employer rules as of October 2026, with official sources.
Thailand employment rules at a glance
| Topic | What the rule is | Official source |
|---|---|---|
| Minimum wage | Set per day by province: THB 337 to THB 400 a day under Wage Committee Notification No. 14, in force since 1 July 2025. THB 400 applies in Bangkok, Chonburi, Rayong, Chachoengsao, Phuket and Koh Samui, and to hotels and entertainment venues nationwide. | DLA Piper summary of Wage Committee Notification No. 14 (Royal Gazette, 17 June 2025) |
| Standard working hours | Maximum 8 hours a day and 48 hours a week; 7 hours a day and 42 a week for hazardous work. At least a 1-hour break after 5 consecutive hours and at least one weekly holiday. | Labour Protection Act B.E. 2541, ILO NATLEX |
| Overtime pay | Overtime on a working day: at least 1.5× the hourly wage. Holiday work: an extra 1× (monthly-paid) or 2× (daily-paid). Overtime on a holiday: 3×. Overtime plus holiday work is capped at 36 hours a week. | Labour Protection Act B.E. 2541, ILO NATLEX |
| Paid annual leave | At least 6 working days a year after 12 months' continuous service. Employers may grant more and allow carry-over. Unused leave must be paid on termination, except dismissal for serious misconduct. | Labour Protection Act B.E. 2541, ILO NATLEX |
| Public holidays | At least 13 paid public holidays a year, including National Labour Day on 1 May. The employer announces the list in advance; a holiday falling on a weekly day off moves to the next working day. | Labour Protection Act B.E. 2541, ILO NATLEX |
| Sick leave | Sick leave as actually needed, paid at full wage for up to 30 working days a year. The employer may require a medical certificate for absences of 3 or more working days. | Labour Protection Act B.E. 2541, ILO NATLEX |
| Maternity and parental leave | From 7 December 2025: 120 days' maternity leave, 60 days paid by the employer; 15 days' fully paid leave for a spouse or partner at childbirth; up to 15 extra days at 50% pay to care for a newborn with serious health problems. | Tilleke & Gibbins on Labour Protection Act (No. 9) B.E. 2568 |
| Probation period | No statutory maximum. Most employers set 119 days or less, because severance becomes payable after 120 days' continuous service. Dismissal during probation still requires notice of one pay period. | Labour Protection Act B.E. 2541, ILO NATLEX |
| Notice period | Written notice given on or before a pay day, taking effect on the next pay day (about one pay period), but no more than 3 months is required. The employer may instead pay wages in lieu on the dismissal date. | Labour Protection Act B.E. 2541, ILO NATLEX |
| Severance pay | From 120 days' service: 30 days' wages (under 1 year), 90 (1–3 years), 180 (3–6), 240 (6–10), 300 (10–20) and 400 days (20+ years). Not due for listed serious misconduct; retirement counts as termination. | Labour Protection Act B.E. 2541 (as amended 2019), ILO NATLEX |
| Employer social contributions | About 5.2%–6.25% before caps: Social Security Fund 5% on wages THB 1,650–17,500 a month (max THB 875); Workmen's Compensation Fund 0.2%–1.0%; from 1 October 2026, Employee Welfare Fund 0.25% (10+ staff, no provident fund). | Baker McKenzie on Ministerial Regulation on SSF wage base B.E. 2568 |
| Employee social contributions | Social Security Fund 5% of wages, capped at THB 875 a month for 2026–2028; the wage ceiling rises to THB 20,000 in 2029 and THB 23,000 in 2032. From 1 October 2026, 0.25% to the Employee Welfare Fund where it applies. | Baker McKenzie on Ministerial Regulation on SSF wage base B.E. 2568 |
| Income tax on salaries | Employer withholds monthly and files form PND.1. Progressive rates 0%–35%: first THB 150,000 of net income exempt, 35% above THB 5 million. Employment income gets a 50% deduction capped at THB 100,000. | PwC Worldwide Tax Summaries – Thailand (Revenue Code rates) |
| Mandatory bonuses and 13th-month pay | None required by law. Annual bonuses are common but become binding only if promised in the contract, work rules or established practice. | Labour Protection Act B.E. 2541, ILO NATLEX |
| Work permits for foreign nationals | A work permit from the Department of Employment (digital e-Work Permit since 13 October 2025) plus a Non-Immigrant B visa. The employer applies. Non-BOI employers usually need THB 2 million paid-up capital and 4 Thai employees per foreigner. | Khonsu Legal summary of Department of Employment practice |
| Employment contract requirements | A written contract is not legally required but is standard; any language is valid. Employers with 10+ employees must publish Thai-language work rules, keep a Thai employee register and, since 2025, file an annual working-conditions report each January. | Labour Protection Act B.E. 2541, ILO NATLEX |
Employer obligations in Thailand, topic by topic
Filter by primary service relevance
Does an employment contract in Thailand have to be in writing, and how long can probation last?
What are the legal working hours and overtime rates in Thailand?
What is the minimum wage in Thailand in 2026, and how must wages be paid?
How much paid leave must employers give in Thailand?
What does an employer pay on top of salary in Thailand?
What notice and severance does an employer owe when dismissing an employee in Thailand?
Can a company hire a foreign national in Thailand, and what permit is needed?
Is it risky to engage independent contractors instead of employees in Thailand?
Key employment laws in Thailand and official sources
- Labour Protection Act B.E. 2541 (1998), as amended to No. 9 B.E. 2568 (2025) — Sets working hours, overtime, leave, wage payment, notice and severance rules for private-sector employers.
- Social Security Act B.E. 2533 (1990) — Requires employer and employee contributions to the Social Security Fund and registration with the Social Security Office.
- Workmen’s Compensation Act B.E. 2537 (1994) — Requires employer-only contributions to the Workmen’s Compensation Fund for work-related injury and illness.
- Revenue Code (personal income tax) — Sets progressive income tax rates and the employer’s duty to withhold tax from salaries and file PND.1.
- Emergency Decree on Managing the Work of Foreigners B.E. 2560 (2017), as amended B.E. 2561 (2018) — Requires work permits for foreign nationals, reserves certain occupations for Thais and sets penalties for illegal employment.
- Personal Data Protection Act B.E. 2562 (2019) — Governs how employers collect, use and transfer employee and candidate personal data.
FAQs: hiring employees in Thailand
Can a foreign company hire employees in Thailand without a local entity?
Not directly in most cases. Income tax withholding, Social Security Fund registration and work permits all require a Thai employer. A foreign company without a Thai entity usually hires through an Employer of Record, which employs the staff locally and runs payroll, or sets up a Thai company or BOI-promoted entity. Engaging staff as contractors to avoid this carries misclassification and tax presence risks.
How much does an employee cost in Thailand on top of gross salary?
Usually about 5–6% of wages, and less for higher earners because of caps. The employer pays 5% Social Security Fund contributions on wages up to THB 17,500 a month (maximum THB 875), 0.2–1.0% to the Workmen’s Compensation Fund and, from 1 October 2026, 0.25% to the Employee Welfare Fund unless a provident fund applies. Budget also for statutory severance and any customary bonus.
What is the minimum wage in Thailand in 2026?
Thailand’s minimum wage is a daily rate set by province. Under Wage Committee Notification No. 14, in force since 1 July 2025, rates range from THB 337 a day in Narathiwat, Pattani and Yala to THB 400 a day in Bangkok, Chonburi, Rayong, Chachoengsao, Phuket and Koh Samui. Hotels and entertainment venues pay at least THB 400 nationwide. Check for any new Wage Committee notification before setting pay.
How much notice and severance does an employer owe when dismissing an employee in Thailand?
Notice of at least one pay period, with no more than 3 months required, or pay in lieu. Severance depends on service: 30 days’ wages after 120 days, then 90, 180, 240 and 300 days, up to 400 days’ wages after 20 years. No severance is due for listed serious misconduct. Unused annual leave must be paid, and the Labour Court can add compensation for an unfair dismissal.
Can a company hire a foreign national in Thailand, and what permit is needed?
Yes. The employee needs a Non-Immigrant B visa and a work permit from the Department of Employment, issued digitally through the e-Work Permit system since October 2025. Non-BOI employers usually must show THB 2 million paid-up capital and four Thai employees per foreign worker. BOI-promoted companies use a faster Single Window, and highly skilled professionals may qualify for the 10-year LTR visa.
Is it risky to engage contractors instead of employees in Thailand?
Yes, if the contractor works like an employee. Thai Labour Courts look at control, integration and regular pay rather than the contract label. A reclassified worker can claim severance of up to 400 days’ wages, leave, overtime and notice pay, and the company may owe back social security contributions and tax. Contractors suit defined projects; ongoing roles under company direction should be employment.
Related NNRoad resources for Thailand: Employer of Record in Thailand · Payroll in Thailand · Hiring foreign employees in Thailand · Contractors and on-demand talent in Thailand · Thailand employer cost calculator
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Regulation Updates in Thailand
Directive on Nationwide Inspections of Foreign Worker Employment and work permits
What it is: A directive from the Department of Employment for nationwide inspections and stricter enforcement targeting foreign nationals working without authorization, with penalties for employers.
What it changes: The policy directs nationwide inspections and increases enforcement on work permits, and imposes criminal and financial penalties on employers related to unauthorized foreign workers.
Who is affected:
- Employers
What employers should do:
- Review and ensure compliance with work permit requirements.
- Prepare for potential inspections and maintain documentation related to foreign workers and permits.
Notes: Effective month: 2026-05.
Oct 2025: Thailand 2025 Policy on Undocumented Migrant Workers Registration
Thailand has opened a crucial 15-day registration window from October 15 to October 29, 2025, for undocumented migrant workers from Cambodia, Lao PDR, Myanmar, and Vietnam. This initiative provides an opportunity for migrant workers to regularize their employment status and obtain legal work permits in Thailand. The registration process is designed to streamline the employment of migrant workers, improve labor regulation compliance, and enhance worker protections across various sectors.
Update first published on NNRoad in Oct 2025. The current rules are summarised in the sections above.
Discover the latest employment and compliance updates in Thailand — helping you stay ahead in a changing regulatory landscape.