Hire and pay employees in
Thailand, hassle-free

The individual income tax ranges from 0% to 35%. Income tax is calculated according to progressive rates.

The employer cost is generally estimated at 5.3% of the employee's salary

• Social security: 5%*
• Workman's Compensation Fund: 0.30%&

Standard working hours are 8 hours per day, 40 hours per week from Monday to Friday. The standard work week is from 09:00 to 18:00 with an hour break. However, employees can work from Monday to Saturday with a working week of 48 hours. 

Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 36 hours of overtime a week. For additional hours, employees are paid:

• 150% of the hourly rate for overtime during a normal working day.
• 200% of the hourly rate, for work undertaken during a holiday
• 300% of the hourly rate, for overtime work undertaken during a holiday

Managers and supervisors can be exempt of overtime pay if in their job description includes a supervisory authority. 

In the private sector, there is no paid paternity leave by statute in Thailand, although employers are free to offer paid/unpaid time off. 

Employees are entitled to paid sick leave for up to 30 days. The employee will receive 100% of their salary from the employer.

Additional leave 

Employees are also entitled to leave for the following cases:

• Business Leave – 3 days per year with 100% pay by the employer.
• Military Service - 60 days per year (if the employee is required to go under military service).

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Thailand can be complex. There is no at-will termination in Thailand for employers and termination must be done for just cause.

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • probation period
  • objective grounds
  • disciplinary dismissal
  • performance due to unsuitability for the job
• By expiration of the contract

The minimum notice period is 0 days and will vary depending on the type of employment.

• Termination with cause by the Employer – No notice
• Termination without cause by the Employer – 30 days

Severance pay in Thailand is mandatory and will depend on the length of service. Severance pay is not due if the employee was terminated for serious misconduct.

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Thailand celebrates 13 national holidays. National public holidays include:

• New Year's Day
• Makha Bucha Day
• Chakri Day
• Songkran Festival
• Labour Day
• Coronation of King Vajiralongkorn
• Visakha Bucha Day
• Asarnha Bucha Day
• Buddhish Lent
• Queens Birthday
• Chulalongkorn Memorial Day
• Kings Birthday
• Constitution Day

Onboarding takes 3 business days after the Scope of Work is signed. Mandatory documents must be completed one day before the start date.

Contracts can be in English or bilingual. They must be in writing and signed by both parties.

A contract must include:

• name
• start date
• length of the employment
• job description
• termination conditions