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How to hire and pay employees in Thailand
Slasify
Jun 19, 2025
| Key Takeaways |
|---|
| 1. Thailand offers strong business incentives, including tax breaks and special economic zones, making it a strategic hub for regional expansion. |
| 2. Minimum wage varies by province from THB 337–400/day, with Bangkok set at THB 372/day for 2025. |
| 3. Personal income tax is progressive up to 35% with no local employment taxes, simplifying compliance for employers. |
| 4. Statutory contributions include 5% Social Security and 0.2%–1% Workmen's Compensation, with a 0.25% Employee Welfare Fund taking effect in 2026. |
| 5. Standard working hours are capped at 48 per week, with overtime payable at 150%–300% depending on the day and scenario. |
| 6. Employees receive at least 6 days of annual leave after one year, plus up to 30 paid sick days and 98 days of maternity leave with mixed employer/SSO payments. |
| 7. Termination requires notice equal to the pay cycle (up to 3 months), with severance ranging from 30 to 400 days' wages depending on service duration. |
| 8. Thailand observes at least 13 paid public holidays, with 19 holidays scheduled for 2025 depending on region and religious practices. |
| 9. Payroll is processed monthly, and all wage-related payments (including overtime and holiday pay) must be paid within a one-month cycle. |
Discover the global hiring and employment landscape in Thailand – centrally located in Southeast Asia, Thailand is an ideal hub for business expansion. With a dynamic economy and a skilled workforce, coupled with incentives like tax breaks and special economic zones, Thailand stands out as a prime destination for your business development.
Personal Income Tax
| Taxable Income (THB) | Progressive Tax Rate (%) |
|---|---|
| Up to 150,000 | - |
| 150,001–300,000 | 5 |
| 300,001–500,000 | 10 |
| 500,001–750,000 | 15 |
| 750,001–1,000,000 | 20 |
| 1,000,000–2,000,000 | 25 |
| 2,000,001–5,000,000 | 30 |
| Over 5,000,000 | 35 |
Local Taxes
There are no local taxes on employment income in Thailand.
Statutory Contributions
Contributions made to the Social Security Fund is calculated based on the employee's monthly salary of up to THB 15,000, and those made to the Workmen's Compensation Fund is calculated based on the employee's annual salary of up to THB 240,000.
Employer Contributions
| Contribution Rates | |
|---|---|
| Employee Welfare Fund | 0.25% (effective October 1, 2026) |
| Social Security Fund | 5% |
| Workmen’s Compensation Fund | 0.2%–1% |
Employee Contributions
| Contribution Rates | |
|---|---|
| Employee Welfare Fund | 0.25% (effective October 1, 2026) |
| Social Security Fund | 5% |
Payment of Wages
Payments of wages, overtime pay, holiday pay and other relevant amounts shall be paid to the employee on the basis of a period not exceeding a month.
Minimum Wage
The minimum wage in Thailand varies across the 77 provinces, ranging from THB 337 to THB 400 per day for 2025, as follows:
| Provinces | Daily Minimum Wage (THB) |
|---|---|
| Phuket, Chachoengsao, Chonburi, Rayong, Koh Samui District in Surat Thani | 400 |
| Mueang Chiang Mai District in Chiang Mai, Hat Yai District in Songkhla | 380 |
| Bangkok, Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon | 372 |
| Nakhon Ratchasima | 359 |
| Samut Songkhram | 358 |
| Khon Kaen, Chiang Mai, Prachin Buri, Ayutthaya, Saraburi | 357 |
| Lopburi | 356 |
| Nakhon Nayok, Suphanburi, Nong Khai | 355 |
| Krabi, Trat | 354 |
| Kanchanaburi, Chanthaburi, Chiang Rai, Tak, Nakhon Phanom, Buriram Prachuap, Khiri Khan, Phang Nga, Phitsanulok, Mukdahan, Sakon Nakhon, Songkhla, Sa Kaeo, Surat Thani, Ubon Ratchathani |
352 |
| Chumphon, Phetchaburi, Surin | 351 |
| Nakhon Sawan, Yasothon, Lamphun | 350 |
| Kalasin, Nakhon Si Thammarat, Bueng Kan, Phetchabun, Roi Et | 349 |
| Chainat, Chaiyaphum, Phatthalung, Singburi, Ang Thong | 348 |
| Kamphaeng Phet, Phichit, Maha Sarakham, Mae Hong Son, Ranong, Ratchaburi, Lampang, Loei, Sisaket, Satun, Sukhothai, Nong Bua Lamphu, Amnat Charoen, Udon Thani, Uttaradit, Uthai Thani | 347 |
| Trang, Nanchan, Phayao, Phrae | 345 |
| Narathiwat, Pattani, Yala | 337 |
Statutory Bonus
There is no statutory bonus in Thailand.
Termination
Employers are empowered to dismiss employees at will unless they are members of the Employee Committee, which will require a court order for dismissal. However, unless the dismissal is done for reasons stipulated in Section 119 of the LPA or Section 583 of the Civil and Commercial Code, the employer is required to pay severance and observe the applicable notice period.
| Reasons under Section 119 of the LPA | Reasons under Section 583 of the Civil and Commercial Code |
|---|---|
| Employee performs their duty dishonestly or intentionally commits a criminal offence against the employer | Employee absents themselves from services |
| Employee willfully causes damage to the employer or commits negligent acts causing serious damage to the employer | Employee is found guilty of gross misconduct |
| Employee violates work rules, regulations or the employer's lawful and just orders after being given a written warning (certain serious cases require no prior warning) | Employee willfully disobeys or habitually neglects the lawful commands of the employer |
| Employee absents themselves from duty without justifiable reason for 3 consecutive working days regardless of whether they are separated by holiday | Employee acts in a manner incompatible with the due and faithful discharge of their duty |
| Employee sentenced to imprisonment by a final court judgement |
In any case, employers are obligated to issue a written notice of dismissal detailing their reasons and the date of dismissal.
Notice Period
Employers dismissing their employees must observe a notice period that is at least equivalent to the employee's usual pay period, up to a maximum of 3 months. However, employers can choose to make a payment in lieu of the notice period not served if they want the termination go into immediate effect.
Severance Pay
Employees who have at least 120 days of service are entitled to the following severance pay:
| Length of service | Severance pay |
|---|---|
| Less than 1 year | 30 days' wage |
| 1–3 years | 90 days' wage |
| 3–6 years | 180 days' wage |
| 6–10 years | 240 days' wage |
| 10–20 years | 300 days' wage |
| 20 years or more | 400 days' wage |
Probationary Period
Since employees who work less than 120 days can be terminated without severance pay, the common probationary period is 119 days.
Work Time Rules
Standard Working Hours
Standard working hours is subject to a maximum of 8 hours per day and 48 hours per week.
Break Period
Employees are entitled to at least an hour of break after 5 consecutive hours of work. This rest period shall not be counted as working time unless the total break time is in excess of 2 hours per day, in which case the amount of break time exceeding 2 hours shall be counted as normal working time.
If the employee is required to work more than 2 hours of overtime that day, the employee is entitled to at least 20 minutes of break before starting their overtime work.
Overtime
Employees who are required to work beyond their standard working hours or during holidays shall be paid at the following rates:
| Overtime Rate | |
|---|---|
| Overtime on a regular working day | 150% of the employee's regular hourly rate |
| Standard working hours on a weekly rest day or holiday | Employees entitled to paid holiday shall be paid 100% of their regular hourly rate on top of their holiday pay. Otherwise, 200% of the employee's regular hourly rate |
| Overtime on a weekly rest day or holiday | 300% of the employee's regular hourly rate |
Employers may require their employees to work overtime when it is required by the nature of their work or in the event of an emergency. Otherwise, the employee's consent is needed.
In any case, the total hours of overtime and holiday work are subject to a maximum of 36 hours per week.
Weekly Rest Days
Employees are entitled to a day of rest per week, which shall be granted at an interval of no more than 6 days. Employees' weekly rest days are considered to be paid days, except for employees paid on a daily, hourly or piece rate basis.
Employers may require their employees to work during their weekly rest days when it is required by the nature of their work or in the event of an emergency. Otherwise, the employee's consent is needed.
Holiday and Leave Entitlements
Public Holidays
Employers are obligated to announce in advance a minimum of 13 days of paid public holidays per year. These days are to be selected according to the official public holidays for the year and must include the National Labor Day. There are 19 days of public holidays in Thailand for 2025.
| Holiday | Date |
|---|---|
| New Year's Day | January 1 |
| Makha Bucha Day | February 12 |
| Chakri Day | April 7 |
| Songkran Day | April 14–15 |
| National Labor Day | May 1 |
| Coronation Day | May 5 |
| Visakha Bucha Day | May 12 |
| Additional Special Holiday | June 2 |
| Her Majesty the Queen's Birthday | June 3 |
| Asarnha Bucha Day | July 10 |
| His Majesty the King's Birthday | July 28 |
| Additional Special Holiday | August 11 |
| Mother's Day | August 12 |
| Death Anniversary of His Majesty King Bhumibol Adulyadej | October 13 |
| Chulalongkorn Day | October 23 |
| Father's Day | December 5 |
| Constitution Day | December 10 |
| New Year's Eve | December 31 |
In addition to the above holidays, Chinese New Year, Eid al-Fitr and Eid al-Adha are common holidays that are observed in Narathiwat, Pattani, Yala, Satun and Songkhla, provided that they do not fall on any other public holidays or a weekend.
If the announced public holiday falls on the employee's regular weekly day off, the public holiday shall be taken the following day. Those who are required to work on public holidays must be compensated with either a compensatory day-off or be paid at the applicable overtime rates.
Annual Leave
Employees who have worked for a consecutive year are entitled to at least 6 working days of paid annual leave. The dates of annual leave can be mutually agreed upon or be fixed by the employer in advance. Furthermore, those who have not completed a full year of service are entitled to have their leave entitlements be prorated accordingly.
In any case, both the employer and employee can agree in advance to accumulate and postpone any leave not taken to the following year.
Sick Leave
Employees are entitled to unlimited sick leave as long as they are actually sick, but only up to 30 days of this leave are paid annually.
Maternity Leave
Pregnant employees are entitled to up to 98 days of maternity leave per pregnancy, which shall include any leave for pregnancy-related medical checks.
Employees are entitled to receive maternity pay for the duration of their leave as follows:
| Maternity leave days | Who pays for maternity leave? | Payment |
|---|---|---|
| Days 1–45 | Employer | Full Pay |
| Days 46–90 | Social Security Office (SSO) | Half Pay |
| Days 91–98 | - | Unpaid |
Other Leave
In addition to the above leaves, employees are also entitled to the following:
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Sterilization Leave | Paid | - | For the purpose of, or as a result of, sterilization. |
| Business Leave | Paid | 3 working days per year | For necessary business. |
| Military Service Leave | Both | - | For military service inspection, drilling or readiness testing. The first 60 days of leave in the year shall be paid, while the duration of leave in excess shall go unpaid. |
| Training Leave | Unpaid | - | For training or the development of knowledge and skills. |
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