EOR Service in Thailand

Shraddha Saxena

Hire, Onboard and Pay Employees in Thailand Quickly and Efficiently

Hiring in Thailand at a glance

CURRENCY
Thai Baht
working hours
48 hours per week.
public/bank holidays
18 days
capital
Bangkok
language
Thai
date format
DD/MM/YYYY
remote workers
1.2M
tax year
1 Jan - 31 Dec
minimum hourly salary
No minimum wage
CURRENCY
Thai Baht
public/bank holidays
18 days
capital
Bangkok
language
Thai
date format
DD/MM/YYYY
tax year
1 Jan - 31 Dec
payroll frequency
Monthly
GDP
$495.34B (2022)
working hours
48 hours per week.

Employer of Record in Thailand

An EOR in Thailand simplifies the process of onboarding international talent. They handle legal, administrative, payroll, and regulatory compliance, ensuring a smooth transition for your company and your employees. By partnering with an EOR, you can take full advantage of Thailand's dynamic economy while maintaining compliance and reducing operational complexities.

Why use Thailand EOR?

For employers building a distributed team, tapping into Thailand’s talent pool can greatly contribute to their business growth. 


However, hiring around Thailand’s labor laws can be a bit tricky. For example, minimum wage rates vary by province and are determined based on the local cost of living and economic conditions. To stay current with these trends, employers may have to consult local experts. 


Moreover, Thai labor law allows for collective bargaining. Employees have the right to form labor unions and participate in collective bargaining negotiations.


It is for these reasons, foreign employers will benefit from using a Thailand EOR/PEO for several key reasons. Firstly, these services handle compliance and employment matters, and allow businesses to enter the Thai market swiftly. In summary, employers gain efficiency, compliance, and cost savings when partnering with a Thailand EOR/PEO, enabling a seamless expansion into the Thai market.

EOR Costs in Thailand

The cost of Thailand EOR/PEO services in Thailand may differ based on various factors, such as the number of employees, the extent of services needed, and the intricacy of the project. The pricing structure for Thailand EOR/PEO services usually involves a monthly fee per employee or a percentage of the employee's salary. Extra charges may apply for additional services or customization.

Key Metrics For Foreign Employers 

Thailand has implemented effective economic policies, advancing towards becoming a middle-income economy and making substantial progress in achieving Sustainable Development Goals. 

The country has experienced significant economic growth over two decades, with professional reforms in 2018 streamlining aspects like acquiring electricity, tax payments, business startups, and international trade.

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Thailand.

Factors Global Ranking Interpretation
Rule of law 57 Indicates effectiveness of law enforcement
Labour-employer cooperation 60 Indicates positive labor-employee relationships
Reading Maths, and Science 60 Indicates average scores in OECD's survey of 15-year old students
University Ranking 38 Indicates average QS rankings
Labour productivity per employee 73 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 46 Indicates findability of skilled talent
Workforce with tertiary education 81 Indicates % of workforce with PG degrees
Digital Skills 73 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Thailand.

Why work in Thailand ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

"Risks of misclassification" refers to the inaccurate classification of workers, where employers label them as independent contractors or exempt from certain laws when they should be employees with legal rights. In Thailand, partnering with a PEO/EOR addresses these risks. It ensures compliance with labor laws, accurate employee classification, payroll processing, and benefits access, allowing employers to concentrate on core operations. By entrusting these responsibilities to experienced professionals, you can navigate the Thai labor market with confidence and efficiency.

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Employing in Thailand

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Tax and Social Security contribution:

Payroll Tax Contributor Rate
Pension Employer 3.00%
Health Insurance (Expatriate workers will require private health cover) 1.50 %
Unemployment 0.50%
Work Injury 0.20%-1.00%
Total Employee Cost 5.20% – 6.00%
Pension Employee 3.00%
Health Insurance 1.50%
Unemployment 0.50%
Total Employee Cost
(Every employee must make a mandatory contribution to a social security fund,
which is calculated as 5% of their monthly salary,
with a maximum cap of 750 THB per month.)
5.00%

Employee Income tax

Income Range Rate
0 to 150,000 THB 0.00%
150,001 to 300,000 THB 5.00%
300,001 to 500,000 THB 10.00%
500,001 – 750,000 THB 15.00%
750,001 – 1,000,000 THB 20.00%
1,000,001 – 2,000,000 THB 25.00%
2,000,001 – 5,000,000 THB 30.00%
5,000,000 THB and above 35.00%

Separation

In Thailand, employment can be ended with "just cause," which includes:

  • Criminal offenses
  • Willful damage of property by the employee
  • Negligence leading to serious harm to the employer or others
  • Violation of work rules despite prior warnings
  • Unexplained absence for three consecutive days
  • Employee's sentencing to imprisonment

If termination occurs without "just cause," the terminated employee can file an unfair dismissal claim in the labor court, as Thai labor law tends to favor the worker in such cases.

Termination payments, which comprises of the current month's salary, unused annual leave, and severance pay, must be disbursed to the employee within three days of termination.

Once employment is terminated, the employer must notify the Social Security Office. In the case of foreign workers, the employer also needs to inform the Immigration Bureau and the Department of Employment.

Severance Pay

In Thailand, severance pay is obligatory based on an employee's tenure with the employer. Employees who have worked for the same employer for less than 120 days are not eligible for severance pay.

Duration of service Severance pay
120 days to 1 year The last 30 days of wages
1 year to 3 years The last 90 days of wages
3 years to 6 years The last 180 days of wages
6 years to 10 years The last 240 days of wages
10 years to 20 years The last 300 days of wages
> 20 years The last 400 days of wages

Severance pay is not required in cases of termination for just cause.

Notice Period

Typically, the notice period is around 30 days, but employers can define longer notice periods in the employment contract. This notice should be given before the next salary payment is due, to take effect for the subsequent salary payment date. 

Additionally, employers can provide equivalent payment in lieu of notice is available.

In Thailand, notice periods must be communicated in advance in written form. 

Probation period

While there is no obligatory demand to incorporate a probationary period, it is a common practice to include a probation period of up to, but not exceeding, four months.

Start Hiring in Thailand today

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder. 

Gloroots helps you minimize all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. We do this by helping you with generating employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

Grow your team in Thailand

Expanding your team necessitates the right hires at the right moment and in the correct roles. In Thailand, navigating compliance, payroll, tax, and benefits management can be complex. Our global Employer of Record (EoR) service at Gloroots takes the burden of these tasks off your plate, ensuring compliance and allowing you to focus on what truly matters: your employees and business growth. With us, you can streamline the process and thrive in Thailand's dynamic market.

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Experience Seamless Hiring in Thailand ?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Thailand .

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