Hire in Thailand
Thailand PEO &
Employer of Record
Hire & manage teams remotely in Thailand without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
Hire Employees in Thailand
The NNRoad Advantage ☺
Pay as you go
Global account manager
Employer of Record in Thailand
Compliance & Payroll
Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.
Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).
On-boarding and off-boarding employees following labor law practice.
Complete payroll solution and benefit administration
Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.
Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.
Payment management (Invoicing customers/clients and vendor payments).
Work VISA application assistance, if needed.
Local individual income tax reporting.
Payroll & PEO in Thailand
Compliance & Payroll
Registering the necessary company and personnel information for payroll calculation in the payroll software and system
Monthly Payroll Processing
Year-End Adjustment and Annual Declaration
Taxes & Payroll in Thailand
Employee Income Taxes:
Individual income taxes in Thailand play a significant role in the country’s revenue collection and economic development. As one of the primary sources of government funding, income taxes are imposed on the earnings of individuals residing or working in Thailand. These taxes are designed to fund public services, infrastructure development, and social welfare programs.
The Thai Revenue Department governs the administration of individual income taxes and ensures compliance with the relevant tax laws and regulations. The taxation system in Thailand operates on a progressive scale, meaning that higher income earners are subject to higher tax rates, while lower-income individuals are taxed at a lower rate or may even be exempted from paying taxes.
Thailand follows a self-assessment system, where taxpayers are responsible for reporting their income, calculating their tax liability, and filing tax returns accordingly. The tax year in Thailand corresponds to the calendar year, starting from January 1st and ending on December 31st. The tax returns must be submitted by March 31st of the following year, and taxes owed are typically due at that time as well.
The taxable income in Thailand encompasses various sources, including employment income, business profits, rental income, dividends, and capital gains. Certain deductions, allowances, and exemptions are available to taxpayers, which can help reduce their overall tax burden. It is important for individuals to keep accurate records of their income and expenses to ensure proper reporting and to benefit from available deductions.
5.00%: 150,001 to 300,000 THB
10.00%: 300,001 to 500,000 THB
15.00%: 500,001 – 750,000 THB
20.00%: 750,001 – 1,000,000 THB
25.00%: 1,000,001 – 2,000,000 THB
30.00%: 2,000,001 – 5,000,000 THB
35.00%: 5,000,000 THB and above
0% * 150,000 = 0
5% * 150,000 = 7,500
10% * 200,000 = 20,000
15% * 250,000 = 37,500
20% * 50,000 = 10,000
0+7500+20000+37500+10000 = 75000
Yearly income tax = 75,000 THB
Employer Costs in Thailand
Employer costs in Thailand include expenses related to hiring and employing workers, such as salaries and benefits, taxes, insurance premiums, and more. One of the largest expenses for employers in Thailand is the Social Security Fund (SSF), which is a mandatory program that covers medical and pension benefits for employees. Employers are required to contribute a portion of an employee’s salary to the SSF, and employees also contribute a portion.
Employers are also responsible for paying taxes on behalf of their employees, including income tax, value-added tax, and social security tax. Additionally, employers may provide other benefits, such as health insurance, housing allowances, and bonuses, which can increase the overall cost of employing workers. It is important for employers to understand and budget for these costs in order to ensure the financial stability of their business in Thailand.
3% – Pension
1.50% – Health Insurance
0.50% – Unemployment
0.20% – 1% – Work injury
Total employment cost: 5.20% – 6%
3% – Pension
1.50% – Health Insurance
0.50% – Unemployment
Total employment cost: 5%
Benefits & Insurance in Thailand
In Thailand, some of the most common and mandatory benefits and insurance include the Social Security Fund (SSF), health insurance, and workmen’s compensation insurance. The SSF is a mandatory program that provides medical and pension benefits to employees and is funded by contributions from both employees and employers. Health insurance is not mandatory but is commonly offered by employers as a benefit to their employees. Workmen’s compensation insurance, also known as the Workmen’s Compensation Fund, provides coverage to employees in case of work-related accidents, illnesses, and death.
Employers are required to contribute to these programs on behalf of their employees, and employees are also eligible to make additional contributions to increase their coverage. These benefits and insurance programs play an important role in ensuring the well-being and financial security of the Thai population, especially in the case of medical emergencies and work-related accidents.
The pension system in Thailand now comprises the Government Pension Fund, a defined contribution pension system solely for public officials, the Old Age Pension, a pay-as-you-go sponsored state pension scheme for the private sector personnel. If an insured person is 55 or older and has contributed to the fund for at least 180 months, he or she is eligible for old-age benefits.
Injury Or Sickness Benefits
An insured person is eligible to a non-occupational injury or sickness benefit under the Social Security Act if the employee has paid contributions for at least three months out of the previous 15 months prior to the date of receiving medical treatment.
Unemployment payments are available to employees who have contributed for at least six months within the previous 15 months before becoming unemployed.
Working Hours in Thailand
Working Hours Per Week
Employees in Thailand are allowed to work no more than eight hours per day and no more than 48 hours per week. If the work is considered hazardous to one’s health or safety, the number of working hours must not exceed seven per day and 42 per week.
Overtime is usually chosen at the discretion of the employee. Only in an emergency or if the nature of the task necessitates continuous performance may an employer require an employee to work overtime. On a regular workday, an employee who works overtime is entitled to 1.5 times their regular compensation. On a holiday, overtime is paid at three times the ordinary rate.
Termination Laws in Thailand
There are two common instances in Thailand where terminations occur:
1. Fixed-term employment – this is a type of job that lasts for a specific amount of time
2. For fixed-term employment, the contract cannot be extended once the employee has finished the required work time; otherwise, the contract will not qualify as a fixed-period employment contract.
When a fixed-term contract is ended, severance compensation is not required to be paid.
In case of ongoing employment, the employer must notify an employee of their termination before or on the date the salary is paid. This date marks the beginning of the termination period, which will last until the next pay date.
Depending on the length of service and the reasons for the dismissal, the employee may be entitled to severance pay:
Length of service – 120 days-1 year: 30 days wages
Length of service – 1-3 years: 90 days wages
Length of service – 3-6 years: 180 days wages
Length of service – 6-10 years: 240 days wages
Length of service – 10-20 years: 300 days wages
Length of service – 20 or more years: 400 days wages
Employment Contract in Thailand
In Thailand, an employment contract is a legally binding agreement between an employer and an employee that outlines the terms and conditions of employment. An employment contract typically includes details such as the job duties, salary, working hours, benefits, and length of employment. In Thailand, employment contracts are subject to the provisions of the Labor Protection Act and other relevant labor laws. It is important for both the employer and the employee to fully understand the terms and conditions of the employment contract, as it forms the basis of the employment relationship.
Employment contracts in Thailand can be either for a specific period of time or for an indefinite period, and either party may terminate the contract with prior notice, subject to the provisions of the Labor Protection Act and the terms of the contract. A clear and comprehensive employment contract helps to ensure that the rights and obligations of both parties are clearly defined and understood, and can help to prevent misunderstandings or disputes in the workplace.
Thailand will recognize the legality of a contract if all parties agree to it and it is not against public order or good morals, according to the idea of contract freedom. The agreement can be written or spoken. The employment contract can be for a specific amount of time or for an indefinite amount of time.
The length of a trial or probationary period in an employment relationship is not specified in Thai labor legislation. As a result, there is no set minimum for the length of probation. The probationary period generally last for three months (90 days) and up to 119 days.
Types of Leaves in Thailand
Employees are entitled to various types of paid leave, including annual leave, personal leave, sick leave, and maternity leave. Annual leave is a type of paid time off that employees can use for vacation or personal time, and the number of days of annual leave varies depending on the length of service of the employee. Personal leave is also a type of paid time off that employees can use for personal reasons, such as family events or personal emergencies. Sick leave is paid time off for employees who are unable to work due to illness or injury. Maternity leave is paid time off for female employees who are pregnant, giving birth, or caring for a newborn child.
Employees may also be entitled to other types of leave, such as bereavement leave or marriage leave, depending on the terms of their employment contract and the provisions of the Labor Protection Act. These paid leaves play an important role in ensuring that employees have the time they need to attend to their personal and health needs while still being able to maintain their income.
Paid leave in Thailand is defined as at least six days of paid yearly leave per year after one full year of employment, as stipulated in the employment contract. The company may offer a pro-rated yearly leave to employees who have not completed one year of employment.
Employees who work full-time are entitled to thirty (30) days of sick leave each year. If you will be absent for one (1) day or longer, a medical certificate is required.
Employees are entitled to 98 days of maternity leave, with the first 45 days paid at 100% percent of their regular salary rate. Social security pays the remaining days at 50% percent of the usual salary rate.
The right to paternity leave depends on the industry in which a person works. Paternity leave is not a legal requirement in the commercial sector; nevertheless, employees in the public sector are entitled to 15 days of paternity leave.
Public Holidays in Thailand
Thailand has a number of public holidays throughout the year, which are observed by both the government and private sectors. Some of the most notable holidays include New Year’s Day, Chinese New Year, Makha Bucha Day, Songkran Festival, Coronation Day, Royal Ploughing Ceremony Day, and King’s Birthday. These holidays often involve cultural and religious celebrations, as well as traditional events and activities.
In addition to these national holidays, there are also regional holidays that are specific to certain provinces and are based on local customs and traditions. On public holidays, most businesses, banks, and government offices are closed, and many people take the opportunity to spend time with family and friends or travel. Public holidays in Thailand offer a chance to experience the country’s rich cultural heritage and are an important aspect of life in the country.