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Thai Baht is the official currency of Thailand. Its currency symbol is ฿, THB.
5%- 10% on top of employee salary.
Though Thailand is home to 71 living languages, Thai is its official language.
The population of Thailand is 69.95 million (based on World Bank numbers as of 2021).
Salaries are paid monthly and it is customary (though not required) to pay a 13th month salary bonus.
To start growing your team in Thailand, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary.
This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Hiring in Thailand opens a key strategic location between India and China, which can help your business penetrate the Asian market and unlock new potential. Moreover,
the Thai government is supportive of businesses looking to expand and thus the registration process is relatively uncomplicated compared to other ASEAN countries.
Thailand is currently ranked 17th in the World Bank’s Ease of Doing Business rankings.
That said, Thailand has a corporate tax level of 30% on net income and investment regulations can often be complicated, with increased government intervention for
foreign investors.
Thailand hosts one of the largest communities of digital nomads globally alongside over four million foreign workers. With an emphasis on remote working, there are many
public spaces dedicated to digital nomads for them to utilise and socialise with each other, further building the community. Thailand has become favoured by digital nomads
for a multitude of reasons including its low cost of living, reliable telecom infrastructure, and low tax rates.
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| Social Security: | 5% with a maximum monthly contribution of THB 750. |
Pension and child allowance.
Health insurance (including disability, maternity, and death benefits).
Unemployment insurance.
Workmen’s Compensation.
Contracts in Thailand must include:
There is no requirement under Thai labour law to have a written employment contract. However, in practice, it is advisable to set out key terms and conditions of employment
in writing.
Probation periods are typically no more than 120 days. This is not a statutory requirement.
Emerald Technology can onboard employees in Thailand within 48 hours.
Thailand has one of the world’s best healthcare systems, having opened universal health coverage to all citizens in 2002. Most Thai citizens, therefore, receive health
coverage through that universal coverage scheme, with civil servants and their families receiving coverage via the civil service welfare system. Private employees are often
covered by a social security system that is supported by payroll contributions. Foreign citizens who hold private sector jobs in Thailand may be eligible for this coverage.
Pregnant employees are entitled up to 98 days of maternity leave; 45 of which are paid by the employer, 45 by the social security fund, and the remaining 8 unpaid (or paid
by the employer by prior agreement). There is no statutory requirement for paternity leave.
Under Thai labour law, an employee is entitled to sick leave of up to 30 paid working days per year. If the employee is out for 3 or more consecutive days, the employer has
the right to request a medical certificate. Days taken off due to an injury or illness encountered at work cannot be deducted from the sick leave balance.
There are two types of employee contributions in Thailand: Social Security Fund and Provident Fund. The social security contribution rate is 5% on a capped remuneration of
THB 15,000 per month. All employees are required to contribute to a social security fund an amount equal to 5% of their salary, up to a maximum contribution of THB 750 per
month. Employers and the government contribute an additional 5% each.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
| Notice Periods: | An employer or employee can terminate an employment contract by giving notice in writing to the other party. This is generally a one month notice period, unless other terms are provided for under the employment contract. The employer does not need to give notice (or payment in lieu of notice) if the employment relationship is terminated due to serious misconduct by the employee. |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
| Severance Pay: | tatutory severance pay is based on the employee’s length of service within the company, according to the following schedule: |
Employees are entitled to a statutory minimum of six vacation days per year, after completing their first year of service. In practice, it is common to grant professional employees 10-15 days of paid vacation per year.
Thailand’s minimum wage ranges from THB 300 per day, depending on the cost of living in various provinces.
The normal working day in Thailand is eight hours. If the work is physically exhausting, the maximum number of hours is usually seven per day and 42 per week. Employees
must be given at least one hour’s break per day. Overtime cannot exceed 36 hours per week and must be paid at a rate of 1.5-3x the normal hourly salary of qualifying
employees. At weekends, overtime pay is equal to 3x the base salary. Non-qualifying employees, such as officers of the company, should be paid 2x their salary.
The payroll cycle in Thailand is generally monthly and is usually paid on the last working day, as agreed within the employment contract. Though not required by law, it is customary for employers to pay a 13th month salary.
It is customary (though not required) to pay a 13th month salary bonus.
Similar to other countries, Thailand has strict rules on classifying individual contractors and full-time employees differently. Misclassifying your workers can put your business at risk of fines.
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