Cost of Hiring Remote Employees in Thailand

With the popularity of remote work, many companies are exploring global talent pools in Southeast Asia. One of the most popular destinations for hiring remote workers is Thailand. Even for skilled professionals, hiring in Thailand costs lower than any market from the West. For example, hiring a senior software developer in Thailand can cost USD ~$36,000-$54,000 annually, compared to USD $100,000-$150,000 for the same role in the U.S.

However, hiring employees in Thailand is more than just knowing the base salary for the role. You need to understand what are the social contributions, income tax rates, bonuses, overtime pay, night differentials that play a crucial factor in calculating the total cost of hiring remote employees. 

Average Salary Levels in Thailand

The national average salary in Thailand is approximately THB 1,160,900  (USD 35,623.65) per year or THB 96,700 (USD 2,977.36) per month. Nevertheless, salaries can vary depending on industry, location, and experience level. For instance, salaries in Bangkok are generally higher compared to provincial areas. Furthermore, sectors like technology, finance, and multinational corporations tend to offer salaries above the national average.

Here are some examples to give you a better idea of the salary range for employees in Thailand:

Payroll Components for Employees in Thailand

Employee payroll is protected under the Labour Protection Act B.E. 2541 (1998) in Thailand. As an employer, you must calculate gross-to-net pay accurately, issue payslips, withhold tax and social security contributions, and file monthly returns. Employee contracts and pay records must comply with Thai language and legal standards.

Mandatory Social Contributions

Under the Social Security Act, you are required to contribute to the Social Security Fund and Employee Welfare Fund to cover pensions, health insurance, unemployment, and work injury. You are also required to contribute to Workmen’s Compensation Fund especially for high-risk industries. Both you and your employee are required to contribute to these social benefits except for Workmen’s Compensation Fund. 

*Effective from October 1, 2025, employers and employees must contribute 0.25% of wages to the EWF, increasing to 0.5% from 2030 onwards. 

Withholding Income Tax for Employees

As the employer, you are responsible for withholding personal income tax from your employees’ salaries on a monthly basis and remitting it to the Thai Revenue Department. The withholding tax rate depends on the employee’s income bracket and tax deductions: 

Income taxes are calculated after social security deductions (not including Employee Welfare Fund and Workmen’s Compensation Fund).

Bonuses, Overtime, and Night Differential

Part of the cost of hiring employees in Thailand are bonuses, overtime, and night differential. You are required to keep documentation of hours worked (especially for overtime and night shifts). 

• Bonuses: While not mandatory, giving bonuses is widely practiced as annual or performance bonuses. Bonuses can be a fixed amount or a percentage of the annual salary.
• Overtime Pay: is legally required for hours worked beyond the standard 8 hours. Overtime is 1.5x the employee’s regular hourly wage and can accrue up to 36 hours per week. For hours worked on rest days or holidays, the rate increases to 2x or 3x the hourly wage, respectively.
• Night Shift Differential: Work done between 10:00PM and 6:00AM must be compensated with an additional 30% of the standard hourly wage. You must clearly specify night shift allowances in employment contracts and adjust payroll calculations accordingly.

Breakdown of Total Cost to Hire Employees

Now that we have a better idea of Thailand’s average salary levels and payroll components, let’s calculate how this translates to numbers. Keep in mind that this calculation does not include overhead office equipment, internet, or optional benefits. For instance, you want to hire a mid-level Data Entry Specialist in Thailand with a THB 35,000 (~USD 1,100) monthly salary. 

Hiring with an Employer of Record (EOR) in Thailand

If you want to hire in Thailand, companies like RecruitGo can act as the legal employer to handle payroll, statutory contributions, tax withholdings, and all the compliance requirements needed on your behalf. With RecruitGo, you can outsource all your HR needs so you can focus on your core business functions. 

RecruitGo’s Employer of Record in Thailand has a fixed USD 200 fee for local employees and USD 300 if you employ foreigners. From the example above, here’s the cost of hiring an employee in Thailand with RecruitGo:

With RecruitGo, you can onboard a new-hire in just 3 days! Fill out the form below for a free consultation with our local experts in Thailand!