Expanding your business into Thailand can present several challenges – especially when hiring local talent and navigating the complex local employment laws. As your employer of record in Thailand, XPANDIUM offers efficiency, compliance and local expertise for clients who want to hire employees and run payrolls without establishing a separate legal entity.
Capital City
Bangkok
Currency
Thai Baht, TBH, (1 = 100 Satang)
Population Size
69,600,000
Language Spoken
Thai
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Overview
Partnering with XPANDIUM as your Employer of Record in Thailand means that you can leave all the legalities of onboarding, payroll management, tax payments, and benefits to our team. Our local EOR entity ensures compliance, leaving you more time to focus on optimising your workforce and unlocking your business's full potential.
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XPANDIUM - Hire your employees in Thailand
In Thailand, the labour market is governed by laws based on acts, decrees and ministerial regulations that provide guidelines for employment practices. These laws heavily favour employee rights and cover various employment aspects such as benefits, provisions and employment protection.
The acts the Thai parliament passes outline employers' and employees' rights and responsibilities. The decrees issued by the monarch focus on specific employment features, and ministerial regulations address the characteristics of employment practices in Thailand.
Thai labour laws are thorough and specific, covering employment conditions and contractual obligations. Employers need to be able to navigate this legal framework to ensure compliance and avoid any legal pitfalls.
XPANDIUM is your trusted partner for hiring employees in Thailand. We offer expert guidance to ensure your business adheres to these labour laws seamlessly. Our employer of record services in Thailand include classifying your employees according to regulations and keeping you updated on any changes in Thai labour laws—Partner with us to thrive in Thailand's labour market while fully complying with labour codes.
Employment Contract
Employment relationships may be agreed on for
- fixed term employment (temporary) or
- indefinite duration (open-ended, permanent).
Probation period
Probation period is optional and cannot exceed 4 months.In case of fixed-term contracts, the probation period can not be more than 50% of the term of the contract.
Working hours
Full time employment is considered 8 hours per day and 40 hours per week in Thailand. Less hours will mean part-time work.
Hours worked above 8 hours per day / 40 per week or on public holidays are considered overtime. Employer and Employee must agree on working overtime.
Overtime hours cannot exceed a total of 8 hours within a 7 days’ period and must be compensated during payroll for overtime as per local law.Parties may agree that the overtime hours over a 4-months’ time-frame schedule be an average 12 hours for every 7 calendar days.
Minimum wage
The current minimum wage is 584 EUR for full-time employment or 3.84 EUR for hourly work in Thailand.
13th month salary
Not required.
Benefit package
In Thailand, there are no obligatory fringe-benefits that an Employer must offer, however a custom benefit plan may be set up for your team (see more details at the Benefit section).
Payroll Cycle
Salaries are payrolled and paid on a monthly basis.
Health insurance in Thailand
The Thai health insurance system is a solidarity-based social insurance system. This means it provides healthcare for everyone, including persons insured by employment agreement. Estonia is covered by health care and treatment is equally available in all regions. Employees can order a European Health Insurance Card or its replacement certificate in the State Portal.
Employer taxes
33.8% total employment cost in Thailand.
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Public Holidays
When you hire workers in Thailand, it's crucial to consider the holidays as part of your workforce management and leave policies. This ensures that your employees receive their entitled benefits while complying with labour regulations. XPANDIUM can help you navigate these complexities and effectively manage your workforce in Thailand, ensuring compliance with local labour laws.
Thailand observes a total of 14 holidays each year. It's important to note that these holidays are separate from employees' minimum paid leave entitlement. Employees have the right to utilise both holidays and their annual leave. Here is a list of recognised holidays in Thailand:
NAME
DATE
INFO
New Years Day
January 1
Independence Day
February 24
Good Friday
April 2
Friday before Easter Sunday
Easter Monday
April 4
Varies yearly
Labor / Spring Day
May 1
Pentecost
May 23
Victory Day
June 23
Jaanipäev
June 24
Thai Day
August 20
Thai Restoration of Independence
Christmas Eve
December 24
Christmas Day
December 25
2nd Day of Christmas
December 26
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Popular benefits in Thailand
When hiring employees in Thailand, it's essential to ensure you comply with labour and healthcare regulations.
The Ministry of Labor oversees labour relations, addressing workforce needs and promoting employment throughout the country.
The Ministry of Public Health also regulates Thailand's public healthcare system, ensuring employees can access healthcare services.
To support employees, government benefits programs are managed by the Social Security Office (SSO), which falls under the jurisdiction of the Ministry of Labor. The SSO collects contributions from both employers and employees to sustain the Thai Social Security system. This system includes provisions such as retirement pensions, benefits in case of death, illness or injury, disability benefits and parental leave.
Understanding and adhering to the roles of these government bodies and programs is crucial when hiring employees in Thailand. XPANDIUM can guide and assist in navigating this landscape to ensure that your employment practices align with regulations and requirements.
Supplementary medical insurance (private / dental / vision)
Supplementary Life or other special insurance
Additional paid holidays
Flexible work schedule
Voluntary pension fund scheme
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Benefit planning process includes
XPANDIUM handles your employee payroll to ensure it meets all compliance standards. Here's how we make the process more efficient:
- Efficient Gathering of Employee Data: When setting up payroll, we collect all employee information meticulously. This thorough approach forms the basis for payroll and timely salary distribution.
- Compliance with Tax Regulations: At XPANDIUM, we prioritise adherence to Thailand's tax laws covering income tax, withholding tax and sales tax. Our payroll system files taxes in Thailand, reducing errors and ensuring the fulfilment of tax obligations.
- Accurate Employee Classification: Proper classification of employees is crucial for tax withholdings and contributions. We carefully categorise full-time employees, part-time workers and contractors to avoid misclassification issues.
- Official Documentation: As part of our service, we provide documentation to your employees that offers a breakdown of their gross income, tax deductions, benefits and contributions.
XPANDIUM's payroll services in Thailand ensure accurate and timely employee salary payments. As a top Employer of Record in Thailand, we guarantee compliance and efficient payroll management.
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Types of Leaves
Paid leave
Employees are entitled to 28 days.
Public holidays
There are 12 public holidays in Thailand.
Sick leave
An employee is entitled to 182 sick-leave days yearly while enrolled in the national social security system.
Payment is 70% of the employee’s average salary, which is paid by the Employer from the 4th day of sickness but from the 9th day the payment is taken over by the State.
Pregnancy and maternity leave
Expecting women can have a total of 20 weeks / 140 days.
Maternity leave may include and start 70 days prior to giving birth. State health insurance covers maternity leave with 100% payment.
Parents receive a one-time 320 EUR allowance for child birth and in case of triplets the payment is 1,000 EUR per child.
Paternity / paternal leave
The father is entitled to 10 working days off for paternity leave which can be granted within 2 months of the expected child’s birth date. After the birth, fathers are entitled to 2 months of paternity leave with the payment of 100% average salary payment, however it is capped at 3 times of the minimum wage amount.
Other / Child Adoption leave
Employees are entitled to a special leave if adopting a child under the age of 10.
Other / Child care leave
Any parent may take paid leaves for taking care of a child.
Leave varies based on the age of child:
- 3 days - up to 2 children under the age of 14
- 6 days - 3+ children under the age of 14
Payment for days taken is calculated based on the minimum wage.
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Employment termination
Employers have the below options to terminate an employment contract in Thailand:
Termination under probation period
Termination by the Employer is immediately effective with a special 15 days’ written notice to the Employee.
Resignation by Employee
Employees may freely terminate their employment contract with a written notice of minimum 14 days to 1-month notice.
Termination by Employer with notice
An employment agreement may be terminated by the Employer by notice with below period of notices.
If employment period is
- up to 1 year period: 15 calendar days
- from 1 to 5 years of employment: 30 calendar days
- from 5 to 10 years of employment: 60 calendar days
- 10+ years of employment: 90 calendar days
Termination of fixed term contract
If termination is due to Employer’s redundancy, the employee is entitled to the salary that they would have received from the date of termination to the expiry date of the contract.
Termination by mutual consent
The termination by mutual consent allows the Employer and Employee to agree freely in a written agreement with each other on the conditions of termination.
Expiry of employment contract
When the employment contract expires then such employment is automatically terminated.
Severance pay
Employee is entitled to severance pay if the Employer terminates the contract due to redundancy. The severance pay is the average salary calculated based on the latest 6 months salary.
Employees are entitled to receive higher amounts of severance pay depending on the length of employment with the Employer:
- From 5-10 years of employment: +1 month salary
- over 10 years of employment: +1 month salary
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How EOR works in Thailand
XPANDIUM offers employer of record services in Thailand as a solution for companies that want to hire and manage employees without establishing a legal entity. This means that when you choose XPANDIUM as your Thailand employer of record (EOR), your employees will work with and on behalf of your company just as if they were your in-house employees. At the same time, we act as your employee’s legal employer, taking care of all the legal requirements.
XPANDIUM will be responsible for ensuring your workforce is compliantly employed within the guidelines of the local labour laws, handling payroll administration, distributing salary payments and filing employment-related taxes and returns.
Contact us today to learn how we can help you quickly expand your Thailand workforce!
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Payments to employees in Thailand
In Thailand, it's crucial to prioritise following the employment laws to attract and retain employees. When it comes to payroll, being accurate and punctual is essential. Not only does this foster good working conditions for your employees, but it also protects you from potential legal issues and hefty fines that could arise from non-compliance.
To ensure that your payroll processes are precise and fully aligned with employment regulations, seeking out expertise within the country is essential. This is where XPANDIUM truly excels. With our knowledge of laws and vast experience in managing payroll in Thailand, we make compensating employees effortless for your organisation. Place your trust in XPANDIUM as your payroll service provider in Thailand.