Thailand

Employer of Record & PEO in Thailand

Hire & manage teams remotely in Thailand without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Native Language

Thai

Employee Protection

High

Payroll Frequency

Monthly

Capital city

Bangkok

Termination

Hard

Internet

Fast

Currency

Thai Baht (THB)

Immigration

Hard

English Speaking

<30%

Population

70.07 Million

Employment Cost

Low

Cost of Living

Low

How NNRoad Employment & PEO Services Work?

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in Thailand. Registering a legal entity in Thailand as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in Thailand in full accordance with local labor laws in under a week.

Employer of Record in Thailand

Employer of Record (EOR) services are for companies who do not have a legal entity in Thailand, but who want to hire in Thailand. Employment and full liability are outsourced to NNRoad.

➊ You interviews & select the candidates you want to hire in Thailand.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes  payroll in Thailand in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in Thailand while NNRoad manages payroll & HR liabilities.

  • Engaging employees through local labor contracts and performing as the Administrative Employer of designated employee with all applicable Thai employment laws
  • On-boarding and off-boarding employees following Thai labor law practice
  • Registration of employees with social security board and with tax office
  • Complete payroll management and mandatory benefit administration
  • Reporting and remitting payroll taxes and social security fund in compliance with applicable Thai laws
  • Employee management according to local laws, including employee record, managing and tracking WSEs paid time-off, leaves of absence etc., bonus and allowance management, expense and claims, and leave employee database management
  • Payment management, including invoicing customers/clients and salary payments
  • Handling Visa/Work permits for Expat employees

Payroll & PEO in Thailand

Professional Employment Organization (PEO) services are for companies who have a legal entity in Thailand, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

➊ You interviews & select the candidates you want to hire in Thailand.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in Thailand while NNRoad manages payroll & HR compliance.

  • Registering and de-registering the necessary company and personnel information for payroll calculation in compliance with local rules
  • Registering all local employees with the social security board, if required
  • Calculation of gross salary, salary deductions, taxes, social security fund contributions, unpaid leaves, etc., and net salary based on information provided by the Company including irregular payments such as incentive/bonus, allowance, paid/sick leaves etc. if applicable
  • Preparation of monthly social security submission report and monthly/annual withholding tax forms
  • Pro-rata calculation for people who join/resign
  • Providing a monthly payroll summary to the Company
  • Monthly issue of electronic pay-slips

Advantages of NNRoad's Thailand Employment Services

  1. With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in Thailand.
  2. Pay as you go
  3. ​​Dedicated account manager – One point of contact for multiple locations
  4. Employment & termination processing
  5. Complete payroll solution and statutory benefit according to local laws
  6. With EOR/PEO solutions you can hire staff while waiting for the registration of your company in Thailand.
  7. NNRoad only works with professional locally licensed partners
  8. GDPR compliant
  9. NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
  10. NNRoad provides foreigner VISA application services, if needed

Employment Compliance in Thailand

Taxes & Payroll in Thailand

Employee Income Taxes:

Individual income tax rates in Thailand are based on progressive tax brackets. 

Tax Brackets

0%: 0 – 150,000 THB
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

Sample Calculation

Yearly income = 800,000 THB
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.

Employer Contributions:

3% – Pension
1.50% – Health Insurance
0.50% – Unemployment
0.20% – 1% – Work injury

Total employment cost: 5.20% – 6%

Employee Contributions:

3% – Pension
1.50% – Health Insurance
0.50% – Unemployment

Total employment cost: 5%

Thailand PEO employer costs

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

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.

Benefits & Insurance in Thailand

n 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.

Pension

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 benefits

Unemployment payments are available to employees who have contributed for at least six months within the previous 15 months before becoming unemployed.

benefits and insurance in Thailand

Termination Laws in Thailand

There are two common instances in Thailand where terminations occur:

  • Fixed-term employment – this is a type of job that lasts for a specific amount of time
  • Ongoing employment

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.

Severance pay

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

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.

Public Holidays in Thailand

  • New Year’s Day – January 1-3
  • Makha Bucha – February 16th
  • Chakri Day – April 6th
  • Songkran – April 13-14-15
  • Labour Day – May 1-2
  • H.M King’s Coronation – May 4th
  • Visakha Bucha Day – May 16th
  • H.M Queen’s Birthday – June 3rd
  • Asahna Bucha Day – July 13th
  • Public Holiday – July 15th
  • H.M King’s Birthday – July 28th
  • Public Holiday – July 29th
  • H.M Queen’s Mother Birthday – August 12th
  • Prince Mahidol Day – September 24th
  • The Passing of King Bhumibol – October 13th
  • Public holiday – October 14th
  • Chulalongkorn Day – October 23-24
  • King Bhumibol’s Birthday – December 5th
  • Thailand Consitution Day – December 10-11-12
  • Public holiday – December 30th
  • New Year’s Eve – December 31st

Paid Leave in Thailand

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.

Public holidays in Thailand

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.

Employment Contract

A contract of employment establishes a working relationship between an employer and his employee. 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.

Probation Period

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

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.

Sick Leave

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.

Maternity Leave

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.

Paternity Leave

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.

Immigration Laws in Thailand

A non-immigrant visa and a work permit are required for all foreigners who wish to work in Thailand. The first step is to apply for a non-immigrant Category B visa, which is divided into different groups based on your employee’s intended activities. The majority of the foreign employees will require a Category B visa, which is required by professors, lawyers, and anyone working for a multinational firm.

Thailand has some professions that are off-limits to foreigners.

For a new hire to receive a work visa in Thailand, there are a number of requirements that must be completed by both your firm and your employees. You will require the following as an employer:

  • A minimum of 2 million baht in capital is required (or 1 million if the employee is married to a Thai national)
  • To register the company
  • For every non-Thai employee you hire, you have to hire four Thai employees
Thailand work visa with an employer of record
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