Thailand offers a large Southeast Asian workforce and low direct employer contributions, but generous statutory severance. All-in employer cost runs around 1.05x the gross salary, before severance. Here is what to know before your first Thai hire.
Employment runs under the Labour Protection Act plus the Social Security Fund. Contributions are capped and modest, but statutory severance on termination is substantial and scales steeply with tenure.
The daily minimum wage varies by province, roughly THB 330 to 370 in 2024*, so the figure depends on location.
Monthly payroll. A 13th-month or annual bonus is customary but not statutory.
At least 16 public-holiday days a year, set annually with national and traditional dates.
Written terms are standard. A probationary period of up to 119 days is common, since severance obligations begin at 120 days.
Employer social-security contributions are low and capped (around 5%), but statutory severance is the real cost, rising to up to 400 days' pay for long service.
Statutory severance runs from 30 days' pay after four months up to 400 days' pay after 20 years of service, payable on dismissal without cause.
Employees pay personal income tax and their social-security share, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
A statutory minimum of six paid days a year after one year of service, with many employers granting more.
98 days of maternity leave, with 45 days paid by the employer and the rest through social security.
Up to 30 paid sick days a year with a medical certificate for longer absences.
Paid personal-business leave and military-service leave are provided under the Labour Protection Act.
Notice is generally one pay period, and dismissal without a fair reason can trigger unfair-termination compensation on top of severance.
Statutory severance from 30 up to 400 days' pay by tenure is the headline cost of ending employment.
A period of up to 119 days is common, since severance obligations start at 120 days of service.
A contractor working like an employee can be reclassified, with back contributions and severance liability.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Thai employment contract, payroll, Social Security Fund, and severance, handled. One invoice, flat $399 per month.