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.
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.
*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.