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.
2026 budgeting estimate, not a PND1/SSO filing result. Uses the general Section 33 rate of 5% each and THB17,500 monthly ceiling plus progressive PIT with standard deductions. Excludes cumulative withholding, individual reliefs, bonuses, the Workmen’s Compensation Fund, Employees Welfare Fund, temporary location relief, severance and foreign-worker exceptions.
Social 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.
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.
Source: Labour Protection Act §17, §118–122, §119
Supporting detail
18/18 decision blocks · verified 2026-08-18 · review by undefined
Employment status does not disappear because an agreement lacks a written title. Use a Thai/English written contract stating role, wage and pay period, workplace, hours, probation, leave, overtime, notice, confidentiality/IP and permitted deductions. An employer with at least ten employees must also prepare and publish Thai work rules. A “consultant” label cannot displace labour protection where the contract, rules and actual control show employment.
There is no universal statutory probation cap, and probationary staff retain minimum-wage, hours, leave, notice and social-security rights. Completing 120 days triggers the first severance tier of 30 days’ wages, so the common 119-day term is a cost milestone—not permission to dismiss without reason or notice. Define assessment criteria, feedback, extension conditions and the process for failed probation.
Ordinary work is capped at eight hours/day and 48/week; hazardous work is generally seven/42. Provide at least one hour of rest after no more than five continuous hours and at least one weekly rest day no more than six days apart. Overtime plus holiday work is generally capped at 36 hours/week and normally needs consent. Workday overtime is at least 1.5x; holiday work is at least 1x or 2x depending on existing holiday-pay entitlement, and holiday overtime at least 3x.
Since 1 July 2025, the current daily minimum is THB337–400 by actual workplace and activity: Bangkok is THB400 across industries; Phuket, Chachoengsao, Chonburi, Rayong, Koh Samui, and category 2–4 hotels and entertainment establishments nationwide are THB400; Mueang Chiang Mai and Mueang Songkhla are THB380, with other locations following the official table. Do not substitute the registered office, a remote worker’s headquarters or allowances for the applicable floor.
The daily minimum is not a professional-role offer. Salary ranges should disclose Bangkok/province, job family, seniority, sector, sample period and base-versus-total-cash scope. Validate supply and demand with the DOE’s official jobs platform and Ministry labour statistics, then calibrate with time-stamped real vacancies; do not display an unsourced “market median”.
A wage period may not exceed one month and monthly employees must be paid at least monthly. Keep overtime, holiday pay and statutory deductions separately evidenced. On termination, wages, overtime and holiday pay are generally due within three days. Maintain an auditable chain of attendance, payroll register, bank payment, deduction authority and employee acknowledgement; a transparent payslip is a commercial control and a single net figure must not conceal statutory items.
Employment income uses progressive PIT rates of 0–35%; the employer withholds on payment and files under Revenue Department rules. Tax residence is generally tested at 180 days in a tax year, but employment income does not support a universal flat non-resident shortcut. Section 33 social security is generally 5% each, with a 2026 monthly wage ceiling of THB17,500 and THB875 maximum per side. Separately assess the Workmen’s Compensation Fund, industry risk and any temporary location-specific relief.
The current calculator is a budgeting approximation using monthly salary, a standard personal deduction, progressive rates and the general Section 33 5%/THB17,500 ceiling. It does not model cumulative annual withholding, spouse/child/insurance reliefs, bonuses, the Workmen’s Compensation Fund, Employees Welfare Fund, temporary disaster relief, severance or foreign-worker exceptions. It is not a PND1/SSO filing result and must be reconciled to Thai payroll software and official receipts.
After one continuous year, provide at least six paid working days of annual leave; an employer may grant pro-rated leave before one year. Carry-over may be agreed in advance, while termination payment for unused leave depends on the exit scenario under the Act. Do not offset sick leave, public holidays or weekly rest days against annual leave.
Provide and announce at least 13 traditional holidays each year, including National Labour Day; a substitute day is generally required when one overlaps a weekly rest day. Use the current official/employer calendar for the workplace and do not automatically treat bank holidays, public-service holidays or social-media calendars as fixed private-sector entitlements.
Sick leave may be taken as actually needed; for at least three consecutive working days an employer may request a qualifying medical certificate, with employer-paid sick leave capped at 30 working days/year. From 7 December 2025, Maternity leave is 120 days, with 15 days of spouse childcare leave (with up to 60 maternity days employer-paid), plus 15 days at 50% pay for special child care. Check eligibility and the event date.
Minimum wage, overtime, statutory leave, SSO and work-injury protection are not optional benefits. A 13th-month payment, bonus, private medical/dental, insurance, meals, transport and long-term incentives are not universally statutory, but a contract, work rules, collective agreement or established practice can make them payable. Mandatory contributions to the Employees Welfare Fund (กองทุนสงเคราะห์ลูกจ้าง) commence on 1 October 2026 — the cabinet deferred the original 1 October 2025 start by one year. Employer and employee each contribute 0.25% of wages; the employer withholds the employee’s share and remits both by the 15th of the month following the deduction, so the first remittance falls due on 15 November 2026. It applies to employers with 10 or more employees; coverage below 10 requires a separate Royal Decree. Employers that already run a provident fund (กองทุนสำรองเลี้ยงชีพ) are exempt — but any individual employee not enrolled in that provident fund (still on probation, or who declined to join) must still be registered with the Welfare Fund and have contributions remitted; this is the clause most often missed. Fishing, domestic work without an attached business, non-profit bodies (foundations, associations, unions) and specified private-school personnel fall outside the chapter. The statutory ceiling is 5% of wages (Labour Protection Act B.E. 2541, Chapter 13, sections 126–138). The rate later steps up to 0.5%, but the step-up date is deliberately omitted here — Ministerial Regulation B.E. 2567 states the absolute date 1 October B.E. 2573, and whether the one-year postponement decree also shifted that date could not be confirmed against the official text; several law-firm alerts state a shifted date that does not match the regulation as written. Budget against the Ministry’s current notice.
For an indefinite contract, notice is generally given on or before a pay date to take effect on the next pay date, or paid in lieu; fixed-term expiry and statutory exceptions need separate review. Severance is 30/90/180/240/300/400 days’ wages across six service tiers from 120 days through 20 years. A serious-misconduct exception under section 119 must precisely match the facts and stated termination ground; generic “poor performance” does not remove process or severance. Termination pay is generally settled within three days.
Test the real relationship around control and subordination: who decides time, place and method, whether wages are paid continuously, who bears tools and business risk, whether substitution is genuine, and whether the work is integrated into the business. Invoices, a personal tax ID or an “independent contractor” agreement do not automatically override factual employment; misclassification can trigger wage, overtime, leave, SSO, work-injury and tax arrears.
Incorporation, shareholding/directorship, a visa or a signed contract does not itself create a work right. Before work starts, check the position-specific visa, DOE e-work permit, reserved occupations, employer/location/job conditions and change notifications; do not start first and regularise later. When an intermediary brings in foreign workers, separately verify its DOE licence, fees, security and worker documents, and do not assume BOI facilitation applies to every company.
Use the DOE “Thai Mee Ngan Tham” platform to advertise and validate local supply. Before using a private agency, check its legal name, licence number, domestic/overseas/foreign-worker category and validity in the DOE’s current register. Advertised role, pay and conditions should match the final contract and undisclosed candidate fees should not be passed through. Commercial-platform traffic is not a government success rate.
If the contract or work rules have no retirement age, or set one above 60, an employee aged 60 may notify retirement, generally effective 30 days after notice with severance payable. An internal higher age cannot remove that option. Reaching retirement age also does not by itself close SSO, tax, foreign-permit or re-employment obligations; reconcile each item to the final working date.
Onboarding: contract, work rules, DOE work right, SSO registration and payroll master data. Monthly: attendance, overtime, wages, PND1, SSO and receipts; SSO is generally due by the 15th of the following month, with a seven-working-day electronic extension during 2025–2029 subject to the current notice. Annually: review workplace minimum-wage table, 13 holidays, tax summary, leave, permits, benefits and risk rate. Schedule a dedicated Employees Welfare Fund check before 1 October 2026. On exit, settle within three days and close tax, SSO and work-permit records.
Thailand 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.
For a local employee on ฿25,000/month, employer monthly cost is about ฿25,875 (overhead +3.5%), ~฿310,500 annualized. Use the calculator as a budgeting estimate and verify payroll filings with the relevant authority.
Social security (SSO): 5%/5% (cap THB 17,500/mo)
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.
SSO 5%, base capped at wage 17,500 (2026) → max 875 baht/month; no mandatory provident fund.
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Deeply researched and maintained against official sources as of the verification date shown; rates and processes are for reference — for major decisions rely on each country’s authorities and local counsel.