Find out how to calculate overtime pay, unpaid leave deductions, and leave encashments for employees in Thailand.
How to calculate overtime pay
Employees who work more than their normal working hours are entitled to overtime pay. Overtime rate in Thailand is 1.5, 2, or 3 times of normal hourly rate, therefore the calculation is carried out by multiplying the hourly rate of pay with overtime rate, and subsequently multiply with the actual overtime hours.
How to calculate the amount to deduct from unpaid leave
Unpaid leave deductions depends on company regulations, but the process is customarily carried out by dividing the monthly gross pay with the number of working days in the month, then multiplying it with the total number of taken unpaid leave.
How to calculate leave encashment
Leave encashment calculation depends on company regulations, but is customarily carried out by dividing the monthly gross pay with the number of working days in the month, followed by multiplying the total number of unutilized leaves.