Hiring in Thailand: Complete Guide 2027
Everything you need to know about hiring and managing employees in Thailand
Overview
Thailand is the second-largest economy in ASEAN and the regional base for automotive, electronics and tourism groups. Employer costs are low: social security is 5% of wages on a base capped at ฿17,500 a month since 1 January 2026, so ฿875 at the cap, plus a workmen's compensation levy of 0.2% to 1%. The expense sits elsewhere. Severance under section 118 of the Labour Protection Act runs from 30 to 400 days' wages by tenure, and a foreign hire needs a work permit tied to an employer with four Thai staff per foreigner. An EOR carries both on its own entity.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Thailand
Payroll runs monthly in baht. An employer registers with the Department of Business Development, takes a tax ID from the Revenue Department and opens an SSO employer account within 30 days of the first hire. Social security (section 33) is 5% employer and 5% employee on wages up to ฿17,500 a month, a ceiling raised from ฿15,000 on 1 January 2026 and due to reach ฿20,000 in 2029 and ฿23,000 in 2032; at the cap each side pays ฿875. The employer alone funds the Workmen's Compensation Fund, 0.2% to 1% by industry on wages up to ฿240,000 a year. Income tax is withheld monthly on form PND1: 0% on the first ฿150,000 of net income, 35% above ฿5,000,000, after a 50% expense deduction capped at ฿100,000. The minimum wage is set by province, ฿337 to ฿400 a day, Bangkok at ฿400 since 1 July 2025. A provident fund (2% to 15%, matched) is voluntary, expected in multinationals. The EOR files PND1, the SSO monthly return and the work permit renewals.
Key Labor Laws &
Requirements
Employment Contracts
- Written bilingual contract, Thai text prevails
- Probation usually 119 days, under the severance threshold
- Foreign staff need a work permit tied to the employer
Leave & Time Off
- 6 days' annual leave after one year, 13 public holidays
- 30 days' paid sick leave a year
- Maternity 98 days, 45 paid by the employer
Termination Rules
- Severance 30 to 400 days' wages by tenure (section 118)
- One pay-period notice or pay in lieu (section 17)
- Unfair dismissal claims go to the Labour Court
COMPLIANCE
Section 11/1 Outsourcing Liability and Severance in Thailand
Section 11/1 of the Labour Protection Act makes a business that uses workers supplied by an outsourcing firm their employer for the Act, and obliges it to give them the same benefits as its own employees doing the same work. With no Thai entity this is theoretical. For one that already owns a Thai company, mixing EOR staff and direct hires on the same tasks invites an equal-benefits claim. Severance is the other cost: section 118 pays 30 days' wages from 120 days of service, 90 after one year, 180 after three, 240 after six, 300 after ten, 400 after twenty. Termination without cause needs one pay-period notice (section 17) or pay in lieu; unfair dismissal goes to the Labour Court. Probation runs 119 days to stay under the first threshold.
Key Challenges
- Severance from 30 to 400 days' wages (section 118)
- Work permits need four Thai staff per foreigner and ฿2M capital
- Bilingual contracts, the Thai text prevails in court
- Section 11/1 joint liability for outsourced staff
- Minimum wage set by province, ฿337 to ฿400 a day
Country Highlights
Advantages
- Employer social security capped at ฿875 a month
- Second-largest economy in ASEAN
- Deep automotive and electronics manufacturing base
- EOR onboarding in 3 to 7 days for a Thai national
- No mandatory employer pension; the provident fund stays voluntary
Popular Industries & Roles
Technology
Avg. Salary: ฿720k-฿1.5M
Bangkok's software teams serve the regional banks, e-commerce groups and the Eastern Economic Corridor's digital projects
Automotive & Electronics
Avg. Salary: ฿480k-฿960k
Thailand builds about 1.5 million vehicles a year and hosts the hard-disk and electronics plants of the Eastern Seaboard
Finance & Shared Services
Avg. Salary: ฿540k-฿1.1M
Regional finance and shared-service centres in Bangkok run accounting, treasury and customer operations for ASEAN
Top 3 Providers in Thailand
Based on our analysis of pricing, compliance record, service quality, and customer reviews
AYP Group
- APAC-owned entities in 14+ markets
- From $488/month EOR; $28/month payroll
- JuzTalent HRIS platform included
- No minimum headcount, transparent pricing
Multiplier
- 110+ owned entities; 150+ countries
- Flat $459/month annual or $499 monthly
- APAC heritage; 3,700+ companies served
- ESOP and equity administration included
Interloop
- ASEAN market entry consulting + EOR
- Thailand BOI specialist
- Owned entities in 8 countries incl. China, India
- No published pricing; DHL, Nespresso logos
Frequently asked questions
Hiring in Thailand through an EOR, in short.
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How much does an employer pay on top of salary in Thailand?
Employer contributions in Thailand come to ≈5–6%; the largest mandatory line is Social security 5%. With the other statutory benefits and a typical EOR fee, budget ~15–35% on top of gross salary.
What does an EOR charge per employee in Thailand?
Published EOR fees in Thailand run $300–600/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Thailand pay in tax and contributions?
Income tax is 0–35% progressive and employee social contributions are 5% (capped) (5% social security), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Thailand?
3-7 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Thailand?
AYP Group, Multiplier and Interloop hold the first three places in our ranking for hiring in Thailand. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Thailand.
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