Thailand has many opportunities for companies looking to expand, with a population of more than 69 million people and top industries including tourism, textiles, and agriculture. Payroll and labor requirements are changing each year, so it is important to stay ahead of new updates to maintain compliance. Companies must be registered with the Ministry of Commerce, the Department of Business Development, Social Security, and Workmen’s Compensation Fund. Companies must also obtain a tax ID from the Revenue Department before beginning operations.

Payroll and Tax Considerations in Thailand:

  • Minimum wage is THB 313-336 and can vary by region
  • Any overtime work on a work day is to be paid at a rate no less than 150% of the normal hourly wage
  • Severance pay varies based on length of service, ranging from 30-300 days of wages
  • Thailand has a progressive tax system with rates ranging from 0-35%
  • All employers with 20 or more employees must have a working conditions agreement in writing that includes basic information about the job

HR and Statutory Requirements

  • Employees are entitled to 6 days of annual leave after a year of service with the same employer
  • Employees receive 3 days of sick leave that do not require a certificate from a doctor. After 3 days they must present a certificate. The maximum is 30 days of sick leave per year
  • Females are entitled to no more than 90 days of maternity leave for each pregnancy
  • There is no law regarding paternity leave, but government sector employees may receive up to 15 days of leave to be taken within 90 days of childbirth
  • Social Security Fund provides retirement benefits to insured employees at the age of 55 years if they have paid at least 180 months of contributions

Holidays in Thailand

  • January 1 – New Year’s Day
  • January 3 – New Year’s Day observed
  • February 16 – Makha Bucha
  • April 6 – Chakri Day
  • April 13 – Songkran
  • April 14 – Songkran
  • April 15 – Songkran
  • May 1 – Labor Day
  • May 2 – Labor Day observed
  • May 4 – Coronation Day
  • May 13 – Royal Ploughing Ceremony Day
  • June 3- Queen Suthida’s Birthday
  • July 14 – Buddhist Lent Day
  • July 28 – King Vajiralongkorn’s Birthday
  • August 12 – The Queen’s Birthday
  • October 13 – Anniversary of the Death of King Bhumibol
  • October 23 – Chulalongkorn Day
  • October 24 – Chulalongkorn Day observed
  • December 5 – King Bhumibol’s Birthday / Father’s Day
  • December 10 – Constitution Day
  • December 12 – Constitution Day observed
  • December 31 – New Year’s Eve

If you are just getting started in Thailand or need to simplify operations, Blue Marble makes it easy. Our cloud-based payroll platform with customized reporting gives you real-time access to your payroll across all countries and currencies. We provide a dedicated US-based service team and direct access to in-country experts to help when questions come up to ensure compliance with local payroll regulations. Learn more about simplifying your payroll in Thailand: click here