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Employer of Record Thailand
Hire staff and expand your business in Thailand with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Thailand designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Thailand. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Thailand takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Thailand
A Brief Guide to Thailand
Thailand, the land of smiles, is an enchanting realm brimming with history, culture, and natural wonders. Embraced by coastal waters, Thailand unfolds into lush forests, awe-inspiring temples, bustling urban landscapes, and picturesque beaches.
Category | Information |
Location | Southeast Asia |
Capital City | Bangkok |
Official Language | Thai |
Area | 513,120 square kilometers |
Population | Approximately 70 million |
Currency | Thai Baht (THB) |
Major Cities | Bangkok, Chiang Mai, Phuket, Pattaya, Ayutthaya |
GDP | $509.2 billion (as of 2022) |
Major Industries | Automotive, Electronics, Agriculture, Tourism |
Business Culture
Business Culture in Thailand
In the corporate world of Thailand, respect and politeness are held in high regard. Traditionally, interactions often begin with the ‘wai’, a gesture of greeting. Hierarchical structures dictate the business environment and decisions are generally made from the top-down. Punctuality is critical for business meetings and formal attire is preferred. Thai businesspeople tend to be indirect in their communications, so sensitivity to non-verbal cues is important. Relationship-building is also key to successful business, with social events often forming part of the process.
Payroll and Taxes
Payroll and Taxes in Thailand
Employee Taxation
In Thailand, income tax rates are progressive, with higher income levels subject to higher tax rates.
Taxable Income (THB) | Tax Rate |
0 – 150,000 | 0% |
150,001 – 300,000 | 5% |
300,001 – 500,000 | 10% |
500,001 – 750,000 | 15% |
750,001 – 1,000,000 | 20% |
1,000,001 – 2,000,000 | 25% |
2,000,001 – 5,000,000 | 30% |
5,000,001 + | 35% |
Employer Taxation
Employers in Thailand are required to make contributions towards the funding of social security. The contributions are currently set at 5% of each employee’s salary, capped at THB 750 per month for each employee.
Pension and Healthcare
Thailand Pensions
Pension schemes in Thailand are primarily overseen by the Social Security Office under the Ministry of Labour. The government provides a mandatory pension scheme funded by contributions from employees, employers, and the government. The Social Security Pension scheme provides a universal pension for all elderly citizens, while the Government Pension Fund caters to civil servants. Thailand’s pension system has evolved over the years, integrating provident funds and private pension funds, allowing citizens to voluntarily save for retirement.
Healthcare in Thailand
Thailand’s healthcare system is lauded as one of the best in Asia. The country operates a universal healthcare system funded by taxes, allowing all Thai citizens access to healthcare services. This public system is complimented by an extensive private healthcare sector known for high-quality care and minimal wait times.
Public healthcare is provided through the National Health Security Office, administering a wide range of medical services from prevention to rehabilitation. The scheme is largely funded by the government and provides healthcare at low or no cost to Thai citizens.
The private sector attracts medical tourists from around the world due to its high-quality services, state-of-the-art facilities, and competitive pricing. It’s often preferred by those who can afford it for non-emergency care and elective procedures.
Employment Law
Employment Law in Thailand
Relevant Legislation: Thailand’s employment laws are primarily governed by the Civil and Commercial Code (CCC), the Labour Protection Act (LPA) and the Social Security Act. These legislations set the framework for employment contracts, wages, working hours, holidays, and the welfare and safety of employees.
Employment Contracts: While employment contracts in Thailand may be verbal or written, it’s advisable to have written agreements, especially for foreign employees. Contracts should specify terms such as job role, compensation, working hours, holidays, and termination conditions.
Working Hours: The standard working week in Thailand is capped at 48 hours, or eight hours a day over six days for most businesses. For certain sectors like hotels or healthcare, a 7-day working week might be applied, with work not exceeding 8 hours a day.
Leave: Employees are entitled to at least one day of rest per week, usually a Sunday. Thai labor laws also grant a minimum of six days of paid vacation after one year of service, and 30 days of paid sick leave annually. Maternity leave is also provided, up to 90 days including holidays.
Overtime: Overtime applies to work done beyond the regular working hours and must be compensated at a rate of no less than 1.5 times the normal rate. However, overtime is capped at 36 hours per week.
Termination: Both employer and employee can terminate the contract without cause by giving advance notice. However, an employee can be dismissed without notice if they are guilty of misconduct as specified in LPA.
Notice: If termination is without cause, notice must be given at least one pay cycle in advance or equivalent payment in lieu of notice.
Severance Pay: Severance pay is mandated by Thai law and varies based on length of service, ranging from 30 days of wages for more than 120 days of work, up to 300 days of wages for 10 years of service or more.
IMMIGRATION
Work Permits in Thailand
The administration of Thailand’s immigration system falls under the jurisdiction of the Thai Immigration Bureau, which is a subdivision of the Royal Thai Police. This agency handles all matters relating to foreign nationals residing in or visiting the country.
The Thai immigration system is primarily governed by the Immigration Act B.E. 2522 (1979), which sets out the rules for entry, stay, and departure of foreigners from the country. The system is quite intricate, and it’s recommended to consult with experts to navigate through the legalities smoothly.
When it comes to work-related immigration, the Non-Immigrant Visa “B” is the most common type of visa issued to foreigners who wish to work or conduct business in Thailand. This visa is usually issued for a single entry but can be extended within Thailand for a period of one year at a time. To be eligible for a Non-B visa, the foreigner must have a job offer from a Thai company, a letter of approval from a government agency (for example, the Board of Investment), or they may be business owners themselves.
In the case of employees working in companies promoted by Thailand’s Board of Investment (BOI), a different type of work visa, known as the BOI Visa, is issued. These companies enjoy certain privileges such as faster work permit and visa processing through One-Stop Service Centers.
In addition to a visa, most foreign nationals intending to work in Thailand must also secure a work permit before commencing their employment. The Department of Employment under the Ministry of Labor is responsible for issuing work permits. The application can be processed after the foreigner has entered Thailand with the appropriate visa.
Thailand also offers a Smart Visa program aimed at attracting skilled professionals, investors, and startup entrepreneurs in targeted industries. This visa comes with several benefits including a validity of up to 4 years, no work permit requirement if working in the field of expertise, and the ability to bring dependents without additional visa requirements.
Overall, while the process can be complex, with the right knowledge and guidance, navigating Thailand’s immigration system can be made significantly easier. Companies like AgilityEOR play a crucial role in this aspect, helping businesses and their employees understand and manage immigration procedures efficiently.
Public Holidays
Thailand Public Holidays
Holiday | Date |
New Year’s Day | January 1 |
Chakri Memorial Day | April 6 |
Songkran Festival | April 13-15 |
Labour Day | May 1 |
Coronation Day | May 4 |
Visakha Bucha Day | Full moon day of the 6th lunar month |
Asahna Bucha Day | Full moon day of the 8th lunar month |
The Queen’s Birthday | June 3 |
King Vajiralongkorn’s Birthday | July 28 |
The Queen Mother’s Birthday | August 12 |
Chulalongkorn Day | October 23 |
King Bhumibol’s Birthday | December 5 |
Constitution Day | December 10 |
New Year’s Eve | December 31 |
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The Benefits
Thailand Employer of Record Benefits
When you choose Agility EOR to expand in Thailand, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Thailand so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Thai authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Thailand payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.