How to Hire Employees in Thailand

Foreign companies can hire in Thailand through a local entity, an Employer of Record (EOR), or by engaging independent contractors.

The main compliance requirements include the Labour Protection Act, Social Security Fund (SSF) contributions, and work permit rules that apply to foreign nationals employed in the country.

• Bangkok's minimum daily wage is THB 363, effective 1 January 2024, setting the floor for all employment contracts in the capital.
• The SSF wage cap rises to THB 17,500 per month from 1 January 2026, capping employer and employee contributions at THB 875 per month each.
• Severance pay begins after 120 days of service and scales up to 400 days' pay for employees with 20 or more years of tenure.
• EOR onboarding in Thailand takes approximately one business day, compared to roughly three months to incorporate and register a local entity.

This guide covers employment contracts, payroll, statutory benefits, termination rules, and compliance obligations for companies hiring in Thailand.

Gloroots operates as a Global Employer of Record, employing workers in Thailand on behalf of foreign companies and managing payroll, contracts, and statutory filings under local law.

Job Market and Hiring Trends in Thailand

Demand for digital roles in cybersecurity, tech development, and digital marketing is rising steadily as internet penetration in Thailand approaches 84% by 2026, according to Statista.

Tech and engineering roles face persistent talent shortages, while general services roles see a relative surplus of available candidates.

• Unemployment fell to 1.15% in 2024, according to Thailand's National Statistical Office, signaling a tight labor market across most sectors.
• Thailand had 2.3 million registered migrant workers as of 2023, per the Ministry of Labour, adding depth to the available workforce in manufacturing and services.
• Thailand's digital economy is projected to reach $53 billion by 2025, per the Google and Temasek e-Conomy SEA report, reflecting sustained investment in technology sectors.
• Internet penetration stood at 81.1% in 2022 and is projected to reach 84% by 2026, per Statista, supporting continued growth in remote and digital work.
• The services sector employs 45.9% of the workforce and contributes approximately 56% of GDP, per World Bank 2021 data, making it the primary hiring ground for foreign employers.

Companies hiring in Thailand should account for competition in technical roles and plan sourcing strategies accordingly, particularly for engineering and software development positions.

Plan your hiring route

Talk through your country-specific employment requirements with the Gloroots team.

Book a demo

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

Three paths exist for hiring in Thailand: set up a local entity, engage independent contractors, or use a Global Employer of Record (EOR). Each suits a different scale and risk tolerance.

Entity setup takes roughly three months and costs approximately $94,000 as a one-off, with annual ongoing costs near $40,200. That commitment makes sense only when headcount justifies it.

Contractors suit project-based work but carry real misclassification risk under Thai labour law. Misclassification can trigger back-payment of Social Security Fund (SSF) contributions, severance, and statutory benefits.

An EOR lets you employ workers in Thailand without a local entity. To understand how does EOR work in practice, the model places Gloroots as the legal employer on record while you retain day-to-day management. First hire can be active within one business day. If you are evaluating providers, see our guide to the best employer of record options available today.

Employees vs. Contractors in Thailand

Misclassifying a worker in Thailand is a compliance liability. Courts can order back-payment of SSF contributions, severance, and all statutory benefits from the original start date.

Thai courts apply a multi-factor test to determine worker status. The test examines control over work hours, who owns the equipment, how integrated the worker is into the organisation, whether pay is a fixed salary or per-project, and whether the worker can subcontract the work to someone else. No single factor is decisive; courts weigh the full picture.

Cost to Hire an Employee in Thailand

Total employment cost in Thailand exceeds gross salary. Employer statutory contributions add approximately 7.90% on top of base pay.

Employers are required to pay into three schemes: the Social Security Fund (SSF) at 5% of wages (capped at THB 875 per month from January 2026), a mandatory Provident Fund at 2%, and the Workmen's Compensation Fund at 0.20% to 1.00% depending on industry risk classification.

Understanding these contribution layers helps finance teams model accurate headcount costs before committing to hires. For a broader view of what entity-free employment costs, see employer of record cost.

Clear global hiring pricing

See country-specific EOR pricing before you plan your next international hire.

Check our pricing

Compliance Risks While Hiring in Thailand

Non-compliance with Thai labour law exposes employers to fines, back-pay orders, and criminal liability under multiple statutes.

• Worker misclassification: Reclassification triggers back-payment of all SSF contributions and full statutory benefits owed from the start of the working relationship.
• Payroll contribution errors: Under-reporting wages to the Social Security Office carries financial penalties under the Social Security Act.
• Failure to register written work rules: Employers with ten or more employees must file work rules with the Department of Labour Protection and Welfare. Failure to do so results in an administrative fine under the Labour Protection Act.
• Incorrect termination: Wrongful dismissal creates severance liability of up to 400 days' pay, plus exposure to an unfair dismissal claim before the Labour Court.
• Tax filing errors: Late or inaccurate personal income tax filings attract surcharges and interest under the Revenue Code.
• Work permit violations for foreign employees: Employing a foreign national without a valid work permit can result in deportation of the worker and direct fines for the employer.

Each of these risks is manageable with the right employment structure in place. Gloroots EOR services provide local execution and centralized governance, keeping filings, contracts, and contributions accurate across every pay cycle.

Key Labor Laws in Thailand

Employment contracts

Thai law permits verbal or written employment contracts. Written contracts are strongly recommended. A compliant contract must cover employee entitlements, remuneration, notice periods, and grounds for suspension under the Labour Protection Act.

Working hours and overtime

The Labour Protection Act sets a maximum of 8 hours per day and 48 hours per week for standard work. Overtime is capped at 36 hours per week. Employees receive 150% of their normal wage for overtime worked on standard weekdays, rising to 200% to 300% for overtime on public holidays. Overtime rules generally do not apply to managerial staff.

Minimum wage

Thailand's minimum daily wage is set by the Wage Committee and varies by province. The Bangkok rate is THB 363 (approximately $11 per day) as of 1 January 2024, up from THB 353 the previous year. The highest provincial rate reaches THB 400 per day. Employers must apply the rate for the province where work is performed, not the company's registered location.

Leave entitlements

Statutory leave in Thailand covers annual leave, sick leave, maternity leave, and business leave. Full details on each entitlement, including duration and pay conditions, are covered in the Employment Benefits section below.

What to Include in an Employment Contract or Offer Letter in Thailand

A compliant Thai offer letter protects both the employer and the employee. It must address specific statutory requirements set out under the Labour Protection Act.

• Position, job description, and start date
• Probationary period (maximum 119 days)
• Working hours and overtime policy
• Compensation, allowances, and benefits
• Annual leave, sick leave, and public holiday entitlements
• Notice period (one full pay cycle, or payment in lieu)
• Termination policy and grounds for dismissal
• Non-disclosure and confidentiality clause
• Intellectual property assignment clause
• Governing law (Thai law) and contract language (Thai is recommended for enforceability)

Payroll and Taxes in Thailand

Thai payroll runs on a monthly cycle. Salaries are paid in Thai Baht on the last working day of the month.

Foreign employers without a registered local entity must use an Employer of Record or a locally registered company to run payroll legally in Thailand. Payroll cut-off falls on the 20th of each month, and proration is calculated using a 30-day divisor.

Employers withhold personal income tax each month and must issue a 50 Tawi withholding certificate to employees by 15 February of the following year. Employees file their annual personal income tax returns by 31 March.

Thailand applies a progressive income tax structure. The table below shows the applicable rates by income bracket.

Beyond income tax, both employers and employees contribute to the Social Security Fund (SSF), a Provident Fund where applicable, and the Workmen's Compensation Fund (WCF). Contribution rates for each are detailed in the Cost to Hire section of this guide.

Employment Benefits in Thailand

Thai law sets a core floor of statutory benefits that every employer must provide. Many employers supplement these with private health insurance, provident fund top-ups, and allowances to attract and retain skilled workers.

Paid time off and public holidays

Employees earn a minimum of six days of paid annual leave after completing one year of service. Thailand observes 18 public holidays each year. Employees are also entitled to three days of paid business leave per year at 100% of salary, which is separate from annual and sick leave.

Sick leave

Employees may take up to 30 days of paid sick leave per year. A medical certificate is required for any absence exceeding three consecutive days.

Maternity and paternity leave

Employees are entitled to 98 days of maternity leave. The employer pays full salary for the first 45 days; the Social Security Fund covers the remainder at 50% of the employee's regular salary. Surrogate mothers qualify for this entitlement. Adoptive parents do not. Leave cannot be shared with a partner, and there is no statutory paternity leave in the private sector.

Public health insurance

Private sector employees are covered under the Social Security Fund. After one year of SSF contributions, employees receive a child allowance of $18 per month per child under 15, for up to three children. Unemployment benefits become available after six months of SSF contributions, with payments starting on the eighth day after job loss. The SSF also covers funeral expenses and death allowances, and provides a disability benefit that is generally less than 50% of salary.

Work Permits and Visas in Thailand

Foreign nationals working in Thailand require a Non-Immigrant visa and a work permit issued by the Department of Employment.

Employers sponsoring foreign workers must hold a valid business registration. Processing takes 7 to 30 business days at the Department of Employment, Ministry of Labour.

Onboarding New Hires in Thailand

Onboarding in Thailand is a compliance step. Social Security Fund registration, work permit verification, and written work rules must be completed before or on Day One.

• Before Day One: Conduct background check covering criminal record, employment history, education, and work authorization (with employee consent). Issue the offer letter. Enroll the employee in the Social Security Fund and Provident Fund. Prepare workspace and equipment. Send a pre-onboarding package.
• Day One: Run an orientation session. Send a welcome email and make team introductions. Provide a key contacts list. Confirm written work rules are posted at the workplace. This posting is mandatory for employers with 10 or more employees.
• First Week: Hold a goal-setting meeting. Confirm probationary period terms in writing. Introduce the performance review schedule.
• First 90 Days: Schedule regular check-ins. Complete the probationary review before day 119. Confirm permanent employment status in writing.

What our clients are saying

“Managing 15 contractors across multiple countries was time-consuming and at times frustrating. Things like invoices and payment confirmations were all over email.”

Julio Arias

Co-founder, Sketchnote

Read Case Study

NDAs, Confidentiality and IP Protection in Thailand

NDAs and confidentiality clauses are enforceable in Thailand under the Civil and Commercial Code. No standalone NDA statute exists.

For an NDA to hold, its scope must be fair and reasonable. Enforceable agreements can protect trade secrets, customer lists, financial information, and business strategies. IP assignment clauses are enforceable, and non-compete clauses are valid but restricted to reasonable duration and geographic scope.

Intellectual property rights are governed by the Thai Patent Act, Trademark Act, and Copyright Act, all administered by the Department of Intellectual Property under the Ministry of Commerce. Trademarks require registration to receive protection. Copyright protection is automatic, though optional registration is available.

Employee data is governed by Thailand's Personal Data Protection Act (PDPA). Employers must collect only necessary data, obtain employee consent, notify the Personal Data Committee of any breach, and delete data once the retention period ends.

Termination and Offboarding in Thailand

Thai law requires notice of one full pay cycle before termination, or payment in lieu of notice. Just-cause dismissal, such as gross misconduct or a criminal act, requires no notice and no severance payment.

No-cause dismissal triggers statutory severance based on length of service. Severance is calculated on the employee's last monthly wage. Probation periods are capped at 119 days, and termination during probation does not trigger severance.

Severance entitlements by tenure are as follows:

• 120 days to under 1 year: 30 days' wages
• 1 to under 3 years: 90 days' wages
• 3 to under 6 years: 180 days' wages
• 6 to under 10 years: 240 days' wages
• 10 to under 20 years: 300 days' wages
• 20 years or more: 400 days' wages

Final pay, including accrued leave, must be settled within 3 days of termination.

Offboarding steps for employers:

1. Revoke system access and collect company equipment.
2. Issue a termination letter stating the grounds for dismissal.
3. Settle final pay within 3 days of the termination date.
4. Cancel the work permit for any foreign employee within 7 days of termination.

Business Culture in Thailand

Thai business culture is structured around hierarchy. Address senior colleagues by title and first name, preceded by "Khun" as a mark of respect.

Communication is indirect and polite. Thai professionals avoid direct disagreement to preserve group harmony, so read context carefully in meetings and written exchanges.

• Relationship-building first: The concept of "bun khun" (reciprocal goodwill) means trust must be established before formal negotiations begin.
• Consensus-driven decisions: Decision-making involves multiple stakeholders and moves more slowly than Western norms. Build extra time into project timelines.
• Punctuality matters: Arriving late to a business meeting signals disrespect. Be on time.
• Saving face (kreng jai): Deliver criticism privately and diplomatically. Public correction causes lasting damage to working relationships.
• Respect major holidays: Avoid scheduling meetings during Songkran (Thai New Year) and Loy Krathong. Work-life balance is genuinely valued, and these periods are observed widely.

Top Sectors to Hire From in Thailand

Thailand's economy spans five sectors with strong hiring demand. Each offers distinct roles and growth trajectories worth understanding before you build a team.

• Digital and technology: Thailand's digital economy was projected to reach $53 billion by 2025 (Google/Temasek). In-demand roles include software engineers, cybersecurity analysts, and digital marketers.
• Tourism and hospitality: The sector contributed roughly 20% of GDP before 2020 and has recovered strongly since. Employers hire hospitality managers, event coordinators, and multilingual customer service staff.
• Manufacturing and industrial: Thailand is ASEAN's second-largest auto manufacturer. Production engineers, quality control specialists, and supply chain managers are consistently in demand.
• Agriculture and agri-tech: Agriculture employs approximately 31% of the workforce (World Bank). Agri-tech specialists and logistics coordinators are growing roles as the sector modernizes.
• Financial services: Bangkok is a regional fintech center. Compliance officers, financial analysts, and fintech developers are active hiring targets across both local and international firms.

For companies expanding across Southeast Asia, comparing talent availability in neighboring markets is useful. See how to hire employees in Singapore for a regional reference point.

Top Cities to Hire From in Thailand

Thailand's talent is concentrated in five cities, each with distinct specializations that affect hiring strategy and cost.

Bangkok is the primary hub for financial services, technology, and regional headquarters functions. Most multinational employers start here due to the depth of English-speaking professional talent.

Chiang Mai offers a lower cost of living than Bangkok and a well-established remote-work community. It is a strong source for IT, digital marketing, and creative roles.

Pattaya is growing quickly, with infrastructure investment driving demand in hospitality, real estate, and construction management.

Phuket has seen a recovery in tourism since 2022 and now supports a growing pool of digital and creative professionals alongside its hospitality workforce.

Khon Kaen is the northeast's emerging manufacturing and logistics corridor. Government-backed investment in the region has increased demand for agri-tech and supply chain roles, and operating costs remain well below Bangkok. Companies also hire employees in Vietnam as a comparable regional option.

Hire Compliantly in Thailand with Gloroots

Gloroots acts as the legal employer in Thailand, managing contracts, payroll, Social Security Fund contributions, and work permit support so clients can employ workers without setting up a local entity.

This model suits companies testing the Thai market or managing one to five employees before committing to entity setup.

• No local entity required: employ in Thailand from day one.
• Fast onboarding: first hire active within one business day.
• Local compliance and payroll: SSF, Provident Fund, and income tax handled correctly.
• Predictable pricing: flat per-employee monthly fee with no hidden costs.
• Dedicated support: local HR and legal expertise available on demand.

Gloroots is best suited for companies hiring fewer than 10 employees in Thailand or those prioritizing speed and compliance over long-term entity investment. Companies expanding across the region can also hire employees in Philippines through the same platform.

Start hiring with Gloroots

Set up compliant employment in your target country without building a local entity first.

Sign up for Gloroots

Frequently Asked Questions About Hiring in Thailand

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

Yes. A foreign company can hire employees in Thailand without registering a local entity by using a Global Employer of Record (EOR). The EOR becomes the legal employer on record, handling contracts, payroll, and statutory filings. This keeps the hiring company compliant without the cost of entity setup.

What is the fastest route to hire in Thailand?

An EOR is the fastest route. Once a candidate accepts an offer, an EOR can onboard the employee in as little as one business day. Entity setup, by contrast, can take several weeks and requires ongoing administrative overhead to maintain compliance.

What is the minimum wage in Thailand?

Thailand's minimum wage is set at THB 363 per day in Bangkok, effective 1 January 2024. The highest provincial rate reaches THB 400 per day. Rates vary by province, so employers must confirm the applicable rate for each work location before setting compensation.

How does employee vs. contractor classification work in Thailand?

Thai authorities apply a multi-factor test that examines control, integration, and economic dependence to determine worker status. Misclassifying an employee as a contractor can trigger Social Security Fund back-payments, penalties, and potential legal liability. Employers should review classification carefully before engaging any worker.

What are the payroll and tax obligations for employers in Thailand?

Employers run payroll on a monthly cycle and pay wages in Thai Baht. Employer contributions include Social Security Fund (SSF) at 5%, Provident Fund at 2%, and Work Compensation Fund (WCF) at 0.20% to 1.00% depending on industry risk. Employee income tax is withheld monthly under a progressive rate structure.

What statutory benefits must employers provide in Thailand?

Employers must provide a minimum of six days of paid annual leave after one year of service, up to 30 days of paid sick leave per year, 98 days of maternity leave, paid public holidays (18 per year), and business leave as required by law. SSF enrollment is mandatory for all eligible employees.

Do foreign employees need a work permit in Thailand?

Yes. Foreign nationals must hold a Non-Immigrant B Visa and a valid work permit before starting employment in Thailand. Processing typically takes 7 to 30 business days depending on the applicant's nationality and the completeness of supporting documents. Working without a permit carries significant penalties for both the employee and the employer.

What are the severance and termination rules in Thailand?

Employers must give notice equal to one pay cycle before termination. Severance entitlements begin after 120 days of continuous service, starting at 30 days of pay. Employees with 20 or more years of service are entitled to 400 days of pay. Termination for cause without severance requires documented grounds under the Labour Protection Act.