Employer of Record in Thailand

An Employer of Record (EOR) in Thailand employs workers on behalf of a foreign company, managing all legal employer obligations under Thai law.

The primary compliance requirements include the Labour Protection Act B.E. 2541, Social Security Fund (SSF) registration, and the 4:1 Thai-to-foreign employee ratio required to support work permit applications.

• EOR hiring takes 1 to 2 weeks; entity setup ranges from 2 weeks to 5 months depending on structure.
• Employer SSF contribution is 5% of monthly wages, capped at 750 THB per month.
• Standard notice period is 30 days, though contracts may specify longer periods.
• Severance pay obligations begin after 120 days of continuous employment.

This page covers EOR mechanics, hiring structure options, employment law, payroll, visas, and termination rules in Thailand.

Gloroots operates as an EOR provider in Thailand. This guide is written to help readers evaluate all available paths, including entity setup, PEO arrangements, and contractor engagement, not only Gloroots.

What Is an Employer of Record in Thailand?

An EOR holds a Thai legal entity, appears as the employer on Thai government documents, and manages Labour Protection Act compliance while the client company directs the employee's daily work.

Foreign companies without a Thai entity, companies testing the market, and businesses in M&A transitions are the primary users of EOR arrangements.

In practice, the client selects the candidate. The EOR then issues a compliant Thai employment contract, registers the employee with the SSF and Revenue Department, runs monthly payroll in THB, and administers statutory benefits. The client manages day-to-day tasks directly. Under Supreme Court Ruling No. 4970/2552, the EOR is deemed the employer under Thai labor law and can be held jointly liable for employment obligations. To understand how does EOR work in detail, see Gloroots' dedicated guide.

Your Hiring Options in Thailand: EOR vs. Entity vs. PEO vs. Contractor

Four paths exist for employing workers in Thailand: EOR, own entity (Private Limited Company, Representative Office, or Branch Office), PEO, and independent contractor. Each suits a different risk tolerance and speed requirement. Gloroots EOR services cover the entity-free path end to end.

EOR is appropriate when you have no Thai entity, are testing the market, need to hire immediately, or must retain staff after an acquisition.

Entity setup is appropriate when you have a long-term committed market presence, require trading operations, or want to qualify for Board of Investment (BOI) incentives.

Path	Setup Time	Compliance Ownership	Cost Structure	Best For
EOR	1 to 2 weeks	EOR owns compliance	Per-employee fee	Market testing, no entity
Private Limited Company	2 weeks	Client owns compliance	2M THB capital per work permit	Long-term trading operations
Representative Office	1 month	Client owns compliance	2M THB over 3 years	Non-trading liaison activities
Branch Office	3 to 5 months	Client owns compliance	3M THB plus Foreign Business License	Regulated industries
PEO	Varies	Shared	Per-employee fee	Client has existing Thai entity
Contractor	Immediate	Client bears misclassification risk	Project fee	Short-term defined scope

How to Hire in Thailand Through an EOR: Step by Step

The following six steps cover the full workflow for hiring in Thailand through an EOR, from the initial structure decision through to offboarding.

Step 1: Decide Between EOR and Entity

Assess your hiring timeline, available capital, and long-term market commitment. If entity setup takes 2 weeks to 5 months and requires significant capital, EOR is the faster, lower-cost path to employment.

Step 2: Select and Vet an EOR Provider

Confirm the EOR holds its own Thai legal entity. Verify its Labour Protection Act compliance record and review service agreement terms covering liability allocation under Supreme Court Ruling No. 4970/2552.

Step 3: Draft a Compliant Employment Contract

Contracts must state the role, salary in THB, working hours (max 8 per day, 48 per week), overtime rates, and termination grounds under the Labour Protection Act.

Step 4: Register Statutory Requirements and Onboard

The EOR registers the employee with the Social Security Fund and Revenue Department for withholding tax. For foreign hires, it initiates the Non-Immigrant B visa and work permit process before the employee starts.

Step 5: Run Compliant Monthly Payroll

The EOR processes monthly payroll in THB, withholds personal income tax per progressive brackets, remits the 5% employer Social Security Fund contribution, and issues payslips that meet Revenue Department requirements.

Step 6: Manage Offboarding and Exit

The EOR issues written notice of at least 30 days, calculates severance by tenure, disburses termination payments within 3 days, and notifies the SSF, Immigration Bureau, and Department of Employment for foreign workers.

How to Choose the Right EOR in Thailand

Selecting an EOR in Thailand requires evaluating legal standing, support quality, pricing transparency, and platform capability before signing any agreement.

Start by confirming the provider holds its own registered Thai legal entity. A third-party partner arrangement shifts liability and reduces your control over compliance outcomes.

Assess support structure next. A dedicated account owner who understands Thai labour law is more reliable than a shared support queue. Ask how the provider handles disputes under the Labour Protection Act.

Review pricing carefully. Predictable, country-specific pricing lets Finance teams model headcount costs without surprises. Avoid providers who bundle undisclosed fees into payroll runs.

Finally, evaluate the platform. You need visibility into payroll runs, contract status, and statutory filings in one place. For a broader comparison of providers, see our guide to the best employer of record options available today.

Local Legal Knowledge and Entity Ownership

Confirm the EOR holds its own registered Thai legal entity. Providers relying on third-party partners create liability gaps that affect your compliance standing under Supreme Court Ruling No. 4970/2552.

Labour Protection Act Compliance Track Record

Confirm the EOR has documented compliance with the Labour Protection Act B.E. 2541, accurate SSF administration, and direct experience applying the 2025 maternity and paternity leave amendments.

Support Model and Response Time

Verify the EOR assigns a dedicated account manager and provides in-country Thai-language HR support, not only a shared ticketing queue with generic response windows.

Pricing Transparency

Request a fully itemized fee schedule covering per-employee management fees, SSF administration, work permit support costs, and currency conversion charges for THB payroll. Review Gloroots pricing for a clear breakdown of country-specific costs.

Security and Data Compliance

Confirm the EOR's data handling practices comply with Thailand's Personal Data Protection Act (PDPA) B.E. 2562, which governs how employee data is collected, stored, and processed.

Platform and Integration Capability

Assess whether the EOR platform integrates with your HRIS, supports THB payroll reporting, and gives employees self-service access to payslips and leave requests.

Workforce and Talent Pool in Thailand

Thailand has a workforce of approximately 40 million people drawn from a population of around 71.5 million, with a median age of roughly 40 years and growing technical and professional sectors.

Bangkok is the primary business hub. Chiang Mai, Phuket, and the Eastern Economic Corridor (EEC) are secondary talent centers for manufacturing, technology, and tourism roles.

Thai professionals are cost-competitive relative to peers in Singapore or Hong Kong. English proficiency is moderate and strongest in Bangkok's financial and technology sectors. Thailand holds double taxation treaties with more than 60 countries, which reduces cross-border payroll complexity for multinationals hiring across the region, including those also managing an employer of record Vietnam engagement.

Indicator	Detail
Workforce Size	~40 million
Median Age	~40 years
English Proficiency	Moderate; strongest in Bangkok
Top Talent Hubs	Bangkok, Chiang Mai, EEC
Key Industries	Manufacturing, Tourism, Financial Services, Technology, Agriculture

Employment Law Essentials in Thailand

Four statutes form the legal foundation of employment in Thailand. The Labour Protection Act B.E. 2541 (1998) sets minimum standards for wages, leave, and termination. The Labour Relations Act (1975) governs collective bargaining and dispute resolution. The Workmen's Compensation Act (1994) covers workplace injury and illness. The Occupational Safety, Health and Environment Act (1970) establishes employer duties on workplace safety.

Together, these laws define the rights and obligations that every employer operating in Thailand must meet before hiring a single worker.

One practical threshold shapes probation decisions. Employees who complete 120 days of service become eligible for statutory severance pay. For this reason, probation periods are typically set at 119 days, keeping the employment relationship below that threshold. Employers who extend probation beyond 119 days without terminating must account for severance obligations from day 120 onward.

Gloroots manages statutory compliance across all four acts, tracking tenure milestones and severance thresholds so your team does not miss a filing or payment deadline.

Employment Contracts

Under the Labour Protection Act B.E. 2541 and the Civil and Commercial Code, employment contracts may be written or verbal but must include statutory entitlements, compensation terms, notice provisions, and termination conditions.

Fixed-term contracts must be in writing. They must comply with specific conditions on duration and renewals. Contracts that do not meet those conditions convert automatically to indefinite employment.

Working Hours and Overtime

Thai law caps standard working hours at eight per day and 48 per week. Employers must provide a break of at least one hour after five consecutive hours of work.

Overtime is capped at 36 hours per week. On standard workdays, overtime is paid at 150% of the regular rate. On holidays, rates range from 200% to 300%. Overtime rules generally do not apply to employees in managerial positions.

Minimum Wage

Thailand's minimum wage is set regionally by the National Wage Committee and varies by province and, in some cases, by district or industry. Following Wage Committee Notification No. 14, published in the Royal Gazette and effective 1 July 2025, daily minimum wages range from 337 THB in Narathiwat, Pattani, and Yala to 400 THB in Bangkok, Chachoengsao, Chonburi, Phuket, Rayong, and Koh Samui (Surat Thani). Additional sector-specific rules also require a 400 THB daily minimum wage for certain hotel businesses nationwide and licensed entertainment venues.

Leave and Statutory Benefits in Thailand

Thai law sets minimum leave entitlements across several categories. The 2025 amendments expanded both maternity and paternity leave, increasing employer obligations in the private sector.

Maternity leave is now 120 days. The employer pays full wages for the first 60 days. The Social Security Office (SSO) covers the remaining 60 days. Paternity leave is 15 days paid, applicable to private-sector employees. It may be taken before birth or within 90 days after birth.

Leave type	Entitlement	Pay rate	Key conditions
Annual leave	Minimum 6 days	Full pay	After 1 year of service; pro-rata available before 1 year
Sick leave	Unlimited days; employer pays up to 30 days	Full pay (first 30 days)	Medical certificate required for absences of 3 or more days
Maternity leave	120 days	Full pay days 1-60; SSO covers days 61-120	2025 amendment
Paternity leave	15 days	Full pay	Private sector; within 90 days of birth or before birth; 2025 amendment
Public holidays	18 days per year	Full pay	Employees entitled to paid time off on all gazetted public holidays

Thailand observes at least 13 paid public holidays per year. Under the Labour Protection Act, employers must announce at least 13 public holidays annually. Many employers follow the government's full public holiday calendar, which includes 18 regular public holidays in 2025, plus additional Cabinet-approved special holidays for long weekends. Named holidays include New Year's Day (1 January), Makha Bucha Day, Chakri Memorial Day (6 April), Songkran Festival (14–15 April), Labour Day (1 May), Coronation Day (4 May), Royal Ploughing Ceremony Day, Visakha Bucha Day, Asalha Bucha Day, Buddhist Lent Day, Queen's Birthday and Mother's Day (12 August), Passing of King Rama IX (13 October), Chulalongkorn Day (23 October), King's Birthday and Father's Day (5 December), Constitution Day (10 December), and New Year's Eve (31 December).

Annual Leave

Thai law entitles employees to a minimum of six days of paid annual leave per year after completing one full year of service.

Employers may grant leave on a pro-rata basis before the one-year mark. Unused leave may be carried over by mutual agreement between employer and employee.

Sick Leave

Thai law entitles all employees to unlimited sick leave, with the employer required to pay full wages for up to 30 days per year. Absences of three or more consecutive days require a medical certificate.

Maternity and Paternity Leave

Under the 2025 amendment, maternity leave is 120 days per pregnancy, including prenatal appointments. The employer pays full wages for the first 60 days. The Social Security Office (SSO) covers the remaining days, subject to eligibility.

Private sector employees are entitled to 15 days of paid paternity leave under the same 2025 amendment. Leave may be taken before birth or within 90 days after birth, with the employer paying full wages throughout.

Public Holidays

Thailand gazetted the following public holidays for 2025. The exact list is announced annually and may vary by year.

Date	Holiday
1 January	New Year's Day
13 February	Makha Bucha Day
6 April	Chakri Memorial Day
13–15 April	Songkran Festival
1 May	National Labour Day
5 May	Coronation Day
12 May	Visakha Bucha Day
3 June	Queen Suthida's Birthday
10 July	Asanha Bucha Day
28 July	King Vajiralongkorn's Birthday
12 August	Queen Mother's Birthday / Mother's Day
13 October	King Bhumibol Memorial Day
23 October	Chulalongkorn Day
5 December	King Bhumibol's Birthday / Father's Day
10 December	Constitution Day
31 December	New Year's Eve

Payroll, Tax and Statutory Contributions in Thailand

Thailand runs a monthly payroll cycle. Employers must withhold personal income tax and remit Social Security Fund (SSF) contributions by the 15th of the following month.

The SSF contribution rate was updated effective 2025. Both employer and employee each contribute 5% of monthly wages, subject to a monthly wage cap for SSF calculation purposes. The previous breakdown of 3%, 1.5%, and 0.5% by category no longer applies.

Contributor	SSF Rate
Employer	5% of monthly wages (capped)
Employee	5% of monthly wages (capped)

Corporate income tax is levied at 20%. The standard VAT rate is 7%.

Personal income tax rates

Income Range (THB)	Rate
0 to 150,000	0%
150,001 to 300,000	5%
300,001 to 500,000	10%
500,001 to 750,000	15%
750,001 to 1,000,000	20%
1,000,001 to 2,000,000	25%
2,000,001 to 5,000,000	30%
Above 5,000,000	35%

Work Visas and Permits in Thailand

Foreign employees in Thailand must hold a Non-Immigrant B visa before applying for a work permit. Work permits are issued for one year as standard, or two years for executive and expert roles.

An EOR sponsors the work permit under its own Thai entity. The sponsoring entity must maintain a 4:1 ratio of Thai to foreign employees, and 39 occupations are restricted to Thai nationals only. The SMART Visa program (categories T, I, E, and S) covers targeted industries including technology, investment, executive roles, and startups, with validity of up to four years and no work permit required for qualifying individuals.

Visa Type	Purpose	Validity
Non-Immigrant B	Pre-work permit entry for employment or business	90 days, extendable
Work Permit	Authorization to work in Thailand	1 to 2 years
SMART Visa (T/I/E/S)	Targeted industries: tech, investment, executive, startup	Up to 4 years, no work permit required

Misclassification Risk in Thailand

In Thailand, misclassifying an employee as an independent contractor exposes the engaging company to back-pay liability and regulatory penalties under the Labour Protection Act.

Thai authorities apply the following criteria to determine whether a worker is an employee:

• Whether the engaging party controls the worker's schedule, tools, and methods of work.
• Whether the worker is integrated into the business's regular operations rather than operating independently.
• Whether the relationship is economically dependent rather than entrepreneurially independent.
• Whether a fixed-term contract was used without meeting the statutory conditions for fixed-term employment.

Companies found to have misclassified workers face the following penalties:

• Back payment of all statutory benefits, including annual leave, sick leave, and public holiday pay.
• Retroactive SSF contributions plus interest and penalties from the date the relationship began.
• Severance pay calculated from the actual start date of the misclassified relationship.
• Potential criminal liability for the engaging company's directors under the Labour Protection Act.

An EOR makes the EOR the legal employer under Thai law from day one, removing misclassification exposure entirely.

Hiring, Onboarding, Termination and Offboarding in Thailand

Hiring in Thailand requires employers to complete registration, documentation, and payroll setup before the first day of work. Probation periods are capped at 119 days in practice, because employees who reach 120 days of service become eligible for statutory severance.

Termination follows specific statutory rules. Written notice of at least 30 days is required, and just-cause grounds remove the severance obligation entirely. Offboarding involves settlement payments, document issuance, and government notifications, all within defined deadlines.

The sections below cover each phase in sequence: onboarding steps before and after day one, termination grounds and notice requirements, and the full offboarding checklist for both local and foreign workers.

Onboarding

• Before day one: Collect Thai ID or passport and visa or work permit documentation. Issue a compliant employment contract in Thai and English. Register the employee with the Social Security Fund (SSF) and the Revenue Department. Confirm probation does not exceed 119 days.
• Day one: Conduct statutory orientation covering work rules, safety obligations under the Occupational Safety Health and Environment Act, and leave entitlements.
• First week: Confirm payroll data including a THB bank account. Set up leave tracking. Issue an employee handbook covering Labour Protection Act entitlements.
• Beyond: Schedule 30-day and 90-day check-ins. Confirm SSF contributions are remitting correctly. Review probation performance before day 119.

Termination

Thai law requires written notice of at least 30 days, or payment in lieu. Just-cause grounds include criminal offense, willful damage, negligence, rule violation after warning, three days of unexplained absence, or imprisonment. Termination on any of these grounds carries no severance obligation.

Offboarding

• Settlement: Calculate and disburse current month salary, unused annual leave payout, and severance (if applicable) within three days of termination.
• Documents: Issue a written termination letter. Provide a social security certificate. For foreign workers, return the work permit to the Department of Employment and cancel the Non-Immigrant B visa if applicable.
• Exit: Notify the SSF of termination. For foreign workers, notify the Immigration Bureau and the Department of Employment. Revoke system access, collect company property, and conduct an exit interview per company policy.

What's New: Recent Regulatory Changes in Thailand

The Labour Protection Act was amended in 2025, introducing two significant changes to statutory leave entitlements that directly affect employer payroll obligations and employment contract templates.

• Maternity leave increased from 98 to 120 days per pregnancy, including prenatal appointments, effective 2025.
• Employers now pay full wages for the first 60 days of maternity leave, up from 45 days at full pay previously.
• Private sector employees are now entitled to 15 days of paid paternity leave. There was no prior private sector equivalent.
• SSF contribution rates are adjusted to 5% for employers and 5% for employees following multi-year Thai Cabinet approval.

Employers must update employment contract templates and payroll systems to reflect these changes before the next payroll cycle.

Employers should review and update employment contract templates, employee handbooks, and payroll systems to ensure compliance with the latest labour law requirements before the next payroll cycle.

Costs and Financial Planning for Hiring in Thailand

The total cost of employing someone in Thailand extends beyond gross salary to include statutory contributions, work permit fees, and EOR management fees.

Hidden costs include the work injury fund contribution (0.2% to 1.0% of wages depending on industry risk class), work permit application fees (approximately 3,000 to 5,000 THB per permit), and the cost of maintaining the 4:1 Thai-to-foreign employee ratio if scaling a foreign workforce.

Cost element	Direct entity	Gloroots EOR
Entity setup cost	2M to 3M THB capital plus registration fees	None
SSF employer contribution	5% of monthly wages	5% of monthly wages (same statutory rate)
Work injury fund	0.2% to 1.0%	Included in EOR fee
Work permit support	Client manages	Included in EOR service
Payroll administration	Internal hire or outsource	Included in EOR fee
Corporate income tax	20% on profits	Not applicable (no Thai entity)
EOR management fee	N/A	Per-employee monthly fee

Common Challenges and How Gloroots Solves Them in Thailand

Hiring in Thailand without a local entity creates predictable compliance, payroll, and immigration challenges that an EOR is specifically structured to address.

Challenge	How Gloroots Addresses It
Navigating 2025 Labour Protection Act amendments mid-contract	Gloroots updates contract templates and payroll configurations automatically when statutory changes are gazetted.
Managing the 4:1 Thai-to-foreign employee ratio for work permit eligibility	Gloroots tracks headcount ratios and advises on hiring sequencing to maintain compliance.
Avoiding the 120-day severance trigger during probation	Gloroots flags probation end dates at day 100 to allow informed extension or confirmation decisions.
Ensuring PDPA-compliant employee data handling	Gloroots processes employee data under PDPA B.E. 2562-compliant data processing agreements.
Handling termination payments within the 3-day statutory window	Gloroots pre-calculates severance and initiates disbursement on the termination date.

Why Gloroots Is a Strong EOR Partner in Thailand

Gloroots is best suited for companies that need to hire in Thailand quickly, within 1 to 2 weeks, without committing to the capital and timeline required for a Thai Private Limited Company or Branch Office.

Country-specific strengths include in-house Labour Protection Act compliance expertise, direct management of SSF and Revenue Department filings, work permit sponsorship under Gloroots' own Thai entity, and platform support for the 2025 leave amendments.

Gloroots handles the full employment lifecycle in Thailand, from contract to offboarding, under one service agreement.

Ideal for market-entry teams, post-M&A staff retention, and companies piloting Thai operations before full incorporation.

Buyers should confirm whether Gloroots' Thai entity is directly owned or partner-supported, and request a sample service agreement that addresses liability allocation per Supreme Court Ruling No. 4970/2552.

Conclusion

Thailand's 2025 Labour Protection Act amendments, extending maternity leave to 120 days and introducing private sector paternity leave, mark the most significant statutory change in years.

Companies evaluating Thailand entry should map their hiring timeline and headcount against the entity setup requirements and EOR cost structure before committing to either path. The decision is reversible early but costly to unwind after entity registration. For companies also considering regional expansion, the employer of record Singapore page covers a complementary APAC hiring destination.

Frequently Asked Questions About Employer of Record in Thailand

The questions below cover the most common decision points for companies evaluating an EOR arrangement in Thailand.

Is it legal to use an Employer of Record in Thailand?

Yes. EOR arrangements are legally recognized in Thailand. The EOR holds a registered Thai entity and appears as the employer on government documents. Supreme Court Ruling No. 4970/2552 established that the EOR is deemed the employer under Thai labor law. The service agreement between the EOR and the client must clearly allocate liability for employee compensation and damages.

Can a foreign company hire employees in Thailand without setting up a local entity?

Yes, through an EOR. The EOR's own Thai entity acts as the legal employer, so the foreign company does not need to register a Private Limited Company, Representative Office, or Branch Office. This allows hiring within 1 to 2 weeks rather than the 2 weeks to 5 months required for entity setup.

What is the difference between an EOR and a PEO in Thailand?

A PEO requires the client company to have a registered Thai entity, because the client remains the legal employer. An EOR does not require any Thai presence. The EOR is the legal employer via its own Thai entity. Both manage payroll and HR, but the liability structure differs fundamentally.

How long does it take to hire an employee in Thailand through an EOR?

An EOR can onboard an employee in Thailand in as little as 1 to 2 weeks after employment documentation is completed. A Thai Private Limited Company takes around 2 weeks, a Representative Office takes 1 month, and a Branch Office takes 3 to 5 months. Work permit processing adds time for foreign employees.

What are the risks of misclassifying an employee as a contractor in Thailand?

Thai authorities assess supervision, control, and integration into the business to determine employment status. Misclassification can result in back payment of all statutory benefits, retroactive SSF contributions with interest and penalties, severance calculated from the actual start date, and potential criminal liability for company directors under the Labour Protection Act B.E. 2541.

Can an EOR sponsor work permits for foreign employees in Thailand?

Yes. An EOR can sponsor work permits for foreign employees under its own Thai entity. The foreign employee must first obtain a Non-Immigrant B visa before the work permit application is submitted. The EOR must also maintain the 4:1 Thai-to-foreign employee ratio and ensure the role is not among the 39 occupations restricted to Thai nationals.

What happens to employees if a company closes its Thai operations?

If a company using an EOR exits Thailand, the EOR manages the offboarding process. This includes issuing written termination notices, calculating and disbursing severance based on tenure, and notifying the SSF. For foreign employees, the EOR also notifies the Immigration Bureau and the Department of Employment. Termination payments must be disbursed within 3 days of the termination date under Thai law.