Country Payroll Guide Thailand

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Key Facts

Capital
Bangkok
Date format
dd/mm/yyyy
Currency
Thai Bhat (THB)
VAT
the standard rate is 7%

Contributions

Employers

Pension
Pension - 3%
Health Insurance
Health Insurance - 1.50%
Unemployment
Unemployment - 0.50%
Work Injury
Work Injury - 0.2% to 1%
Total Employment Cost
Total Employment Cost - 5.2%

Employees

Pension
Pension - 3%
Health Insurance
Health Insurance - 1.5%
Unemployment
Unemployment - 0.5%
Total Employee Cost
Total Employee Cost - 5%

Minimum Wage

Minimum Wage
The minimum wage in Thailand is 313 to 336 THB per day.

Payroll

Payroll Cycle
Monthly
13th Salary

Not required by law.

Income Tax

Employee Income Tax (1)
0 - 150000 THB - 0%
Employee Income Tax (2)
150001 - 300000 THB - 5%
Employee Income Tax (3)
300001 - 500000 THB - 10%
Employee Income Tax (4)
500000 - 750000 THB - 15%
Employee Income Tax (5)
750000 - 1000000 THB - 20%
Employee Income Tax (6)
1000000 - 2000000 THB - 25%
Employee Income Tax (7)
2000000 - 5000000 THB - 30%
Employee Income Tax (8)
Over 5000000 THB - 35%

Working Hours

General Working Hours

The maximum number of work hours is 8 per day, with a total of 48 hours weekly. Employees performing hazardous tasks work 7 hours per day and 42 hours weekly.

Overtime

An employee must consent to overtime and cannot exceed 36 weekly. Employees working overtime are entitled to overtime pay. Overtime pay is 150% their normal rate or 200% the rate for work on holidays.

Leave

Paid Time Off

An employee who has worked continuously for one full year is entitled to an annual holiday of 6 days per year. If the employee works for less than one year, his or her annual leave is prorated. Sometimes, employers voluntarily give more than 6 days of annual leave to employees. If employees do not use their annual leave holiday within a year, it is carried over to the next year and added to the next year’s annual leave. Yet some employers refuse to carry unused annual leave to the next year, annulling it when the year to which it belongs ends.

Public Holidays

16 days.

Sick Days

Employees are eligible to take up to 30 days of paid sick leave per year. If the employee is absent for more than 3 consecutive days, the employer can ask for a doctor’s note verifying the illness.

Maternity Leave

Employed expectant mothers are granted a minimum of 98 days of maternity leave. 45 days out of these 98 days are paid. Whether the remaining days are paid for or not depends on the employer’s agreement with the pregnant employee.

Paternity Leave

The rights enjoyed by fathers of newborn babies vary depending on the sector in which they work. Fathers working in the private sector receive no paternity leave. The public sector, by contrast, gives fathers 15 days of paternity leave to take care of their newborn babies.

Parental Leave

No statutory regulation.

Other Leave

Work-related injury leave: If the employee needs to receive medical treatment due to work-related injury or occupational disease, his or her work-related injury leave should not exceed more than 12 months. In case of serious injury or special circumstances, the work-related injury leave may be appropriately extended upon the confirmation by the municipal labor ability certifying committee. Yet again the extension shall not exceed 12 months. Injured employees are paid 100% of their daily wages while they receive the required medical treatment. Employers bear the full brunt of payments for employees’ injury compensation.

Termination

Termination Process

When employers want to discharge the employee, they are required to give them one month’s notice in advance of termination. Yet in those cases when employees are discharged for a reason connected with their behavior or performance, employers are not expected to warn them in advance. Among these reasons are the following:

  • Dishonesty at the workplace or criminal offence against the employer
  • Harming the employer intentionally
  • Violating work rules or orders, provided a written warning has already been issued
  • Neglecting duties and, in so doing, causing harm to the employer
  • Being imprisoned

When employees are discharged for misbehaviour, they are not paid severance money either. If employers suspend their business temporarily for a cause other than a force majeure, they pay to the employee 50% of the daily wage he or she received before the suspension of the business. The payment is given to the employee for the whole period his or her services are not required.

Notice Period

The employee or employer can terminate by giving notice at or before any time of payment to take effect at the following time of payment. 30 days advanced notice is common, and some ask for a longer 2 or 3-month notice period. As a rule, the duration of the notice period is stipulated in the employment contract.

Severance Pay

If employees are not dismissed for the reasons mentioned in the section above, they are paid severance according to the following scheme:

  • More than 120 days but less than 1 year = 30 days salary
  • At least 1 year but less than 3 years = 90 days salary
  • At least 3 years but less than 6 years = 180 days salary
  • At least 6 years but less than 10 years = 240 days salary
  • 10 years but less than 20 years = 300 days salary
  • 20 years or more = 400 days salary
Probation Period

Not required, however, Thai law does specify severance pay for employees who have worked for 120 days or more and are terminated without cause. As a result, to avoid paying severance, many employers in Thailand set probation periods of up to 119 days.

Visa

Employment Visa

All foreigners need an initial non-immigrant Category B visa. A non-immigrant visa must be obtained before entering Thailand. Once a non-immigrant visa, an employee can begin to process the work permit, which typically takes 7 business days to process.