Thailand · Hiring guide
Thailand Hiring guide
A manufacturing base and supply-chain hub with simple social security (5%/5%); dismissal pays statutory severance by tenure (a clear ladder), generally easier than Vietnam/India, but you still follow the Labour Protection Act and face "unfair dismissal" risk.
What it costs
what one hire really costsSocial security is surprisingly cheap (max ฿875/mo each), but don't be fooled — severance climbs steeply: 300 days at 10 years, 400 at 20. Letting go of long-tenured staff is costly.
How hard
can you get in and out?- ample manufacturing & supply-chain talent
- simple 5%/5% social security
- probation ≤119 days by custom (severance kicks in at 120)
- no-fault dismissal pays statutory severance by tenure (up to 400 days)
- one pay-period notice
- risk of an "unfair dismissal" claim
- Statutory faults that waive severance (LPA §119): intentional dishonesty / committing a crime against the employer.
- Intentionally causing the employer harm, or serious harm through gross negligence.
- Breaching lawful and fair work rules/orders, repeated after a written warning (no warning needed in serious cases).
- Absence without valid reason for ≥3 consecutive working days; or being sentenced to imprisonment.
- Any dismissal outside the above pays statutory severance by tenure.
- 1.Advance written notice ≥1 pay period (monthly-paid ≈ 1 month ahead), or pay in lieu.
- 2.Non-fault dismissal pays statutory severance by tenure (ladder below).
- 3.Keep evidence (warning letters/appraisals); the reason must be fair — or the Labour Court may award extra "unfair dismissal" compensation or reinstatement.
- 4.Cancel social security / work permit.
Statutory severance by continuous tenure: 120 days–1 yr = 30 days’ wage; 1–3 yrs = 90 days; 3–6 yrs = 180 days; 6–10 yrs = 240 days; 10–20 yrs = 300 days; ≥20 yrs = 400 days’ wage. Under 120 days: none.
Example: Wage 30,000 baht, 4 years (3–6 yr band) → 180 days’ wage = 6 months = 180,000 baht; plus 1 month’s notice or 30,000 baht in lieu.
- "Unfair dismissal": even with severance paid, an unfair reason may still draw extra compensation or reinstatement from the Labour Court — have a fair, provable reason.
- Severance liability starts at 120 days; to keep probation flexible, don’t exceed 119 days.
- Relocation affecting employees’ lives, or layoffs from automation, have special severance rules.
- Culture avoids open confrontation — handle dismissal privately and save face to reduce disputes and bad reviews.
Source: Labour Protection Act §17, §118–122, §119
Supporting detail
How to start
first stepsWhat bites you
what others got wrongThailand generally requires 4 Thai staff per foreigner + ~THB 2M capital each; unplanned, the expat permit stalled.
What to do: Plan the Thai:foreigner ratio & capital up front; start permit/BOI early.
FAQ
What’s the all-in employer cost of one hire in Thailand?
For a local employee on ฿25,000/month, employer monthly cost is about ฿25,875 (overhead +3.5%), ~฿310,500 annualized. Use the calculator for your actual wage.
How are employer social contributions paid in Thailand?
Social security (SSO): 5%/5% (cap THB 17,500/mo)
How much is severance for dismissal in Thailand?
Non-fault dismissal pays statutory severance by tenure: 1–3 yrs 90 days, 3–6 yrs 180 days, 6–10 yrs 240 days’ wage… up to 400 days at ≥20 yrs; plus one pay-period’s notice or pay in lieu. Serious misconduct (dishonesty / ≥3 days’ absence / criminal sentence, etc.) can waive severance.
How much do employers pay for social security in Thailand?
SSO 5%, base capped at wage 17,500 (2026) → max 875 baht/month; no mandatory provident fund.
Deeply researched and verified against official bodies, auto-updated; rates and processes are for reference — for major decisions rely on each country’s authorities and local counsel.