What are the statutory contributions for employees and employers in Thailand?
Employee Income Tax
The Thailand tax system applies a progressive tax structure, with rates as follows:
| Taxable Income | Tax Rate |
|---|---|
| THB 150,000 | 0% |
| THB 150,001 – THB 300,000 | 5% |
| THB 300,001 – THB 500,000 | 10% |
| THB 500,001 – THB 750,000 | 15% |
| THB 750,001 – THB 1,000,000 | 20% |
| THB 1,000,001 – THB 2,000,000 | 25% |
| THB 2,000,001 – THB 5,000,000 | 30% |
| more than THB 5,000,000 | 35% |
Employer Payroll Contributions
Employers are required to contribute to their employees’ social insurance accounts, including their pension, health insurance, unemployment insurance, and work injury insurance.
The Social Security Fund (SSF) is Thailand’s social security system which protects the insured in the event of illness, disability, maternity, unemployment, death, and much more. Both employees and employers contribute to the SSF, with the employee contributing 5% of their monthly salary and the employer contributing an equal amount. The maximum employee salary to be subjected is THB 15,000, therefore both employee and employer contribution is capped at THB 750.
To learn more about SSF, visit this link.
Workmen’s Compensation Fund is a mandatory insurance scheme that protects employees in the event of work-related injury, illness, or death. The employer is solely responsible for contributing to the WCF yearly, with the contribution rate varying from 0.2 – 2.0% based on employee’s risk of work. The rate of contribution may increase or decrease depending on the accident record of the company.
Employers also contribute to the provident fund (PVD), with a contribution of 5% during the employee’s first 5 years or service, and will increase their contributions following the employee’s service year.
Employee Payroll Contributions
Employees are required to contribute to their own social insurance accounts, including their pension, health insurance, and unemployment insurance. The employee contributes 5% to their SSF and 2-15% to their provident fund as per their request.
What is the minimum wage in Thailand?
Thailand sets a national minimum wage which varies by region, ranging from THB 313 to THB 336.
What is the payroll cycle in Thailand?
The standard payroll cycle in Thailand is monthly, with pay dates falling on the last day of the month as agreed within the employment contract.
There is no statutory requirement for a 13th-month salary payment in Thailand.
How long is the working hours in Thailand ?
The maximum number of working hours in Thailand is 8 hours per day and 48 hours per week. If employees are required to work outside of these hours, they are entitled to overtime pay with a rate set at 150%-200% of their regular pay.
How many leaves are employees entitled to?
- Standard paid time off — employees in Thailand are entitled to at least 6 days of paid annual leave after completing one full year of employment; however, should they have not completed a year of service, they are provided a yearly leave on a pro-rated basis.
- Compulsory annual public holidays — there are 16 national public holidays in Thailand.
- Minimum paid sick leave — employees in Thailand are entitled to unlimited sick leaves, but the number of paid sick leaves shall not exceed 30. The employer may require an employee to produce a certificate from a qualified medical professional for a sick leave of three days or more.
- Other leaves:
Military Service Leave — in accordance with the law governing military service, male employees are entitled to up to 60 days off work for inspection, military training, or readiness testing. During this time, he will continue to receive his regular basic salary.
What are the public holidays in Thailand?
Here is the list of public holidays in Thailand for 2023:
| Date | Name |
| 1 Jan | New Year’s Day |
| 2 Jan | New Year’s Day (in lieu) |
| 6 Mar | Makha Bucha |
| 6 Apr | Chakri Day |
| 13 Apr | Songkran |
| 14 Apr | Songkran |
| 15 Apr | Songkran |
| 16 Apr | Songkran |
| 1 May | Labor Day |
| 4 May | Coronation Day |
| 6 May | Coronation Day (bridge day) |
| 3 Jun | Visakha Bucha Day |
| 3 Jun | H.M Queen’s Birthday |
| 5 Jun | Visakha Bucha Day (in lieu) |
| 5 Jun | H.M. Queen’s Birthday (in lieu) |
| 28 Jul | H.M. King’s Birthday |
| 1 Aug | Asahna Bucha Day |
| 13 Oct | Anniversary of the Death of King Bhumibol |
| 23 Oct | Chulalongkorn Day |
| 5 Dec | King Bhumibol’s Birthday/Father’s Day |
| 10 Dec | Constitution Day |
| 11 Dec | Constitution Day (in lieu) |
| 31 Dec | New Year’s Eve |
How long is the maternity and paternity leave in Thailand ?
- Statutory maternity leave — female employees in Thailand are entitled to up to 98 days of paid maternity leave, which is paid on a regular rate for 45 days and half of the regular rate for the remaining days.
- Statutory paternity leave — male employees in Thailand’s public sector are entitled to 15 days of paternity leave while the private sector does not have a mandated paternity leave.
- Statutory parental leave — there is no mandatory parental leave in Thailand.
What rights do employees have upon leaving employment due to certain conditions?
Employers can terminate employees for valid reasons such as poor performance or misconduct, but this must be done via providing a notice. When an employee’s service with a company is terminated for certain reasons, they are entitled to certain rights and benefits, including:
- Notice period — employers must provide employees with a written advance notice at least a month prior to the date of the next salary payment. Should employers fail to do so, they must make a “special payment” of one month’s salary plus fixed allowances in lieu of the notice period.
- Severance pay — employees working for more than 120 days are entitled to severance pay, which varies based on their length of service.:
| Length of Service | Final Wage Rate |
| > 120 days, < 1 year | 30 days |
| > 1 year consecutively, < 3 years | 90 days |
| > 3 years consecutively, < 6 years | 180 days |
| > 6 years consecutively, < 10 years | 240 days |
| > 10 years consecutively, < 20 years | 300 days |
| > 20 years | 400 days |
- Probation period — Thailand does not require probation period, but it is common for employers to set a probation period of up to 119 days.
What is the type of visa for employees in Thailand?
For short-term work activities up to 15 days, the appropriate work permit is the Urgent Work Permit (UWP). The UWP may be extended for another 15 days if the work is not completed during the initial 15-day period. Except for visa-exempt nationals, foreign nationals seeking an UWP must obtain a Non-Immigrant B visa before entry.
For work activities that exceed 30 days, a Work Permit is required. The Work Permit can be granted for one to four years duration, depending on the company’s status in Thailand. All foreign nationals intending to obtain a Work Permit, including visa-exempt nationals, must obtain a Non-Immigrant B visa before entry.
Standard VAT Rate
The standard VAT rate in Thailand is 7%.
Is there a maximum length of contract for employees?
Thailand employs fixed-term employment contract, which is required to state both starting and ending dates explicitly during the employment period. The maximum length of employment in a fixed-term contract is two years long.
After the two-year period has passed, the employment cannot be extended but instead renewed. This rule applies to both local and foreign employees.
What is the retirement age in Thailand?
Under the Labour Protection Act, the statutory retirement age for employees in Thailand is set at 60 years old. However, depending on the terms of their employment contracts, internal policies, or work requirements, companies are allowed to set a retirement age for employees.
Should the employee wish to retire, they are required to inform the employer and will be allowed to retire 30 days after the notification.