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Thailand EOR & PEO

Start hiring in Thailand

Hire borderless talent with Horizons

SIMPLE, COMPLIANT HIRING WITH HORIZONS EOR

Hire in Thailand

Horizons ensures day-to-day guidance to help your business navigate Thailand’s labor laws and regulations. We also provide mandatory monthly payroll requirements, and absorb all local employment liabilities. Partnering with our Thailand EOR is the quickest and most cost-effective way to enter the Thailand market.

Note, a Thailand Employer of Record is also known as a Thailand Professional Employer Organization (PEO).

Map of Thailand

Facts & Stats

EOR Platform

Hire in Thailand, and pay employees through our platform or app.

EOR Cost

Our Thailand EOR solution is the most affordable on the market.

Time-to-hire

Fast onboarding in Thailand, hire in as little as 12 hours.

Contracts

We draft labor contracts compliant with Thai labor law.

Local Benefits

We administer all mandatory benefits and contributions in Thailand.

185+ Countries

It doesn’t stop with Thailand — we are an international EOR

stay compliant with Thailand labor laws

Employment Laws

Employment contracts in Thailand

Unlike the majority of countries in Asia, Thailand does not require employers to provide written employment contracts to employees. Despite this, it remains best practice for employers to draft concise, strongly-worded written contracts. This helps to avoid misunderstandings and to clearly establish the rights and responsibilities of employers and employees. 

Thailand’s labor laws do not require specific provisions or language be included in an employment agreement. However, a copy of the agreement – written in Thai – must be given to the Department of Employment, in order to issue work permits. Additionally, employers must be prepared for courts in Thailand to uphold the provisions in these agreements.

By partnering with our Thailand EOR, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations. 

Fixed-term
Probationary periodNone
Termination notice period1 – 3 months, depending on amount of time served
Severance

0 to 119 days of employment: none
120 days to 1 year: 30 days salary
1 to 3 years: 90 days salary
3 to 6 years: 180 days salary
6 to 10 years: 240 days salary
10 years or more: 300 days salary

Employee is only eligible for severance if contract is for 2+ years.

Indefinite
Probationary period119 days (standard)
Termination notice period1 – 3 months, depending on amount of time served
Severance0 to 119 days of employment: none
120 days to 1 year: 30 days salary
1 to 3 years: 90 days salary
3 to 6 years: 180 days salary
6 to 10 years: 240 days salary
10 years or more: 300 days salary

Working hours in Thailand

The typical work week in Thailand is 48 hours, with the standard working day being eight hours. In the event that employers and employees agree to different working hours, they are able to do so as long as the total hours do not exceed 48 hours per week. Local employees are entitled to rest periods of at least one hour, after they have continuously worked for five hours.

Employees are also entitled to at least one day off per week. The time between days off cannot exceed six days.  

Hire compliantly in Thailand without a local entity.

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Holidays in Thailand

Thailand has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

DateHoliday name
1 Jan MondayNew Year’s Day
2 Jan TuesdayDay off for New Year’s Day
26 Feb MondayMakha Bucha
6 Apr SaturdayChakri Day
13 Apr to 15 Apr Saturday-MondaySongkran
1 May WednesdayLabor Day
5 May SundayCoronation Day
10 May WednesdayRoyal Ploughing Ceremony Day (Tentative Date)
29 May WednesdayVisakha Bucha
3 Jun MondayDay off for Queen Suthida’s Birthday
21 Jul SundayBuddhist Lent Day
28 Jul SundayKing Vajiralongkorn’s Birthday
12 Aug MondayThe Queen’s Birthday
13 Oct FridayAnniversary of the Death of King Bhumibol
23 Oct WednesdayChulalongkorn Day
5 Dec ThursdayKing Bhumibol’s Birthday/Father’s Day
10 Dec TuesdayConstitution Day
11 Dec WednesdaySubstitute Holiday for Constitution Day
31 Dec TuesdayNew Year’s Eve

Tax in Thailand

In Thailand, a social security fund is available to all employees. This reduces the financial risk from lost wages that may arise from sickness or injury, pregnancy and child birth, unemployment, and death.

Employers in Thailand are responsible for registering new employees with the social security office. Employers must also inform the social security office of any employee resignations or terminations during scheduled monthly submissions.

For tax purposes, both employers and employees contribute 5%. For a monthly wage of 1,650 THB, the minimum monthly contribution is 83 THB. For a monthly wage of 15,000 THB, the maximum monthly contribution is 750 THB.  

If an employee earns less than 15,000 THB a year, they are exempt from taxes. For earnings above this amount, tax rates will range from 5% to 35%. A tax rate of 35% applies to yearly earnings above 4,000,000 THB. 

Health insurance

Thailand has universal healthcare provided through the civil welfare system for public workers. It also has Social Security for private employees (including nationals and expats), and universal coverage for all other Thai nationals. The Social Security fund assigns employees a local hospital where they can receive care at no cost. 

Employers may provide supplementary health insurance as an additional benefit to employees. Alternatively, employers can choose to provide their employees with an insurance allowance.

Vacation leave

After employees have been with a company for one year, they are entitled to at least six days of paid leave each year. Unused leave time can be accumulated and rolled over.

Employers can provide additional annual leave in subsequent years. They can also provide prorated leave to employees with less than one year’s service. 

To become more competitive in the marketplace, some employers offer their employees between 10 and 15 day’s paid vacation each year. 

Sick leave

In Thailand, sick leave is provided as a separate benefit to annual vacation leave. After employees have been with an employer for one year, they are entitled to one month’s paid sick leave per year. An employer may request an employee to submit a medical certificate if they are sick for more than three consecutive days.

If an employee was injured or became ill at work, sick leave does not have to be used for subsequent days off. 

Maternity and paternity leave

Expecting mothers are entitled to three months of paid maternity leave. Employers pay 50% of this leave and the the remaining 50% is paid by the social security system. Maternity leave is paid at full pay.

Paid paternity leave of 15 days is available to state officials or employees whose wives have given birth. 

Personal leave

Personal leave can be taken by employees for situations deemed essential by the employer’s work policies in the contract agreement. 

National service leave or military leave

Employees in Thailand are also entitled to National Service Leave or Military Leave. This type of leave is available for male employees who meet any of the following criteria:

  • They are required for military practice
  • They need to confirm their military status
  • They are leaving to join the military

National Service Leave provides the same rate of pay to the employee. This type of leave cannot exceed two months.

Training leave

Employees can take unpaid leave for training purposes or to attend a course or program with a definitive duration. However, employers can refuse to provide training leave if it would negatively affect the business, or if the employee has previously taken leave on three or more occasions for a minimum of one month’s duration. 

Sterilization leave

Sterilization leave is provided to employees for family planning purposes. It is available to male and female employees going through a sterilization procedure. The applicable leave period is stated in the employee’s medical certificate.

Other types of leave

Employees in Thailand may use other types of leave, but these are at the discretion of their employer. Some examples of additional types of employment leave in Thailand include:

  • Marriage leave – This type of leave allows a person to miss work in order to participate in their marriage ceremony. It is based on the company’s policy.
  • Huji leave – This type of leave is only eligible for Islamic employees and cannot exceed four months.
  • Monkhood leave – This type of leave is only eligible for Buddhist men and cannot exceed four months.
  • Hospitalization leave – This type of leave allows a worker miss work to assist a hospitalized relative.
  • Compassionate leave – This is bereavement leave that is provided to workers who have recently lost a loved one.

Termination and severance

Employers must provide written notice of at least one month before terminating an employee without a specific cause. Alternatively, the employer can pay the employee for the notice period.

Employers are responsible for providing severance payments in the following amounts, based on the length of service:

  • 20 days but less than one year’s service – One month’s salary and allowances
  • One to three year’s service – Three month’s salary and allowances 
  • Three to six year’s service – Six month’s salary and allowances
  • Six to ten year’s service – 240 day’s salary and allowances
  • Ten or more year’s service – 300 day’s salary and allowances

If the employee is terminated for economic reasons, employees with six or more years of continuous service are entitled to receive additional compensation. This compensation is equivalent to 15 day’s wages for every year of employment, up to a maximum payment that is equivalent to 360 day’s wages.

Work for more than 180 days is counted as one full year of service. This payment is made in addition to the severance pay described above.

Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Thailand EOR can mitigate risk for foreign companies and provide guidance through this process.  

hassle-free Thailand compensation & benefits

Compensation & Benefits

Thailand compensation laws

There is no universal minimum wage in Thailand. Rather, the minimum wage is determined by the province in which work is conducted. In 2018, Thailand increased its minimum wages by between 5 THB and 22 THB. Minimum wages were increased by as much as 7% in industrialized provinces such as Chonburi and Rayong.

Overtime Thailand workers are paid around THB 336 daily

Minimum Wage Country Comparison Chart(Per month in USD)
Switzerland (Geneva)$4,000
Italy$2,255
Australia$1996
Algeria$156
Uzbekistan$22
Guaranteed benefits in Thailand

There are 13 paid public holidays each year in Thailand. This grants employees a total of 15 paid days off per year. Employees are also entitled to a minimum of six day’s paid vacation time – although many employers offer between 10 and 15 days.

Employees in Thailand are also entitled to different leave types that include:

  • National service leave
  • Training/exam leave
  • Sterilization leave
  • Monkhood leave
  • Hujj leave
  • Compassionate leave
  • Marriage leave
  • Hospitalization leave
Thailand benefit management

Employers in Thailand should be mindful of supplemental benefits that many employees may expect to receive. Even though Thailand has a universal health care system, a number of employers will offer supplemental health coverage as an added benefit. Many executives and expats in Thailand will request supplemental health and life insurance as part of their benefits.

Employers may also offer their employees a provident fund that encourages retirement savings. Employer contributions to these funds are required to be equal or greater than an employee’s contribution. Employers can provide this benefit through a variety of conditions that include working period, membership, job title, and salary rate.

Benefits and compensation restrictions

The majority of benefit and compensation restrictions will stem from agreements outside of an employment contract. Whilst trade unions and collective bargaining agreements are not the ‘norm’ in Thailand, employers need to ensure they are complying with statutory minimums.

Hire in Thailand in 12h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

Generally speaking, the terms “Thailand PEO” and “Thailand EOR” are used interchangeably.

An EOR in Thailand can feasibly hire both local and foreign nationals to work in Thailand.

However, the ability of Horizons to sponsor your foreign national employee in Thailand may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ Thailand EOR can hire & onboard your employee within 12 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Thailand.

It is possible to get a work visa in Thailand. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Thailand are limited, however—get started today to secure your employees’ visa spot.

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