Cost of Hiring Remote Employees in Thailand

If you’re planning to hire remotely from Thailand, part of your decision-making process is cost. Aside from salary, you must also consider mandatory contributions, bonuses, overtime, and night differential premium (especially if you’re in a different timezone). 

In this article, we will give you a price estimate of how much it costs to hire remote employees in Thailand. 

Average Salaries in Thailand by Role

Part of the benefits of hiring remote staff in Thailand is cost. 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.

 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 like Chiang Mai and Chonburi, which are 15% to 25% lower. Furthermore, sectors like technology, finance, and multinational corporations tend to offer salaries above the national average.

In terms of salary, here’s a list of common roles often outsourced in Thailand:

Based on approximately THB 35 = USD 1. Actual rates vary by experience, industry, and company size.

For role-specific figures, see RecruitGo's Thailand Salary Calculator.

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 Employer 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 (WCF) 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, 2026, employers and employees must contribute 0.25% of wages to the EWF, increasing to 0.5% from 2031 onwards. 

If you hire a marketing specialist with a THB 40,000  (~USD 1,143) salary per month, you would need to pay THB 1,055 per month in contributions. That is roughly an additional 2.64% on the monthly salary. 

Bonuses and Overtime

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: Legally required for hours worked beyond the standard 8 hours. Overtime is compensated at a minimum of 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.

Optional Benefits for Employees

These are not legally required, but they are standard in the Thai job market, especially for hiring skilled professionals:

• Private health insurance: THB 500–2,500 per month, depending on coverage level
• Transport allowance: THB 1,000–2,500 per month, common in Bangkok
• Meal allowance: THB 500–1,500 per month
• Performance bonuses: Expected in tech and finance
• 13th month pay: Not mandated in Thailand, but offered by many mid-to-large employers as a retention tool

Income Tax Calculation

Income tax is primarily your employees liability since these are deductions to their gross salary. However, you are considered as their withholding agent to calculate, deduct, and remit the correct amount monthly. It is also your responsibility to file annual returns with the Revenue Department for your employees. 

Thailand follows a progressive tax system based on income:

Employees get a personal allowance of THB 60,000 and an employment income deduction of 50% (capped at THB 100,000). Most entry- and mid-level employees end up paying little to no income tax after deductions.

Although Income Tax calculations carry no financial burden for you as an employer, they are a crucial part of your employee’s payroll.

Severance Pay

In the event that you need to let go of your remote employees without cause, you also need to include a severance package based on the length of service: 

Severance does not apply during probation (under 120 days), upon resignation, or for termination with cause.

Using the same example above (marketing specialist at THB 40,000 per month), here’s what their severance package would cost at different tenure points: 

Though it is a one-time cost, it adds up quickly for long-tenured employees. When you hire, you must always factor their severance from day one of their contract. 

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. 

If you want to hire a mid-level software engineer in Thailand with a THB 55,000 (~USD 1,570), here’s how much it would cost: 

Because the Social Security cap is flat, your cost ratio drops as salary increases. 

If this employee works overtime, the hourly rate would be THB 229.17/hour (THB 55,000 ÷ 30 working days ÷ 8 hours). Under Section 68 of the Thai Labour Protection Act, monthly salaried employees are legally calculated using a standard 30-day divisor and standard 8-hour workday. 

Overtime is paid at 1.5x on regular days so here’s how much it would cost: 

Hiring with RecruitGo’s EOR

If you don’t have a legal entity in Thailand to hire remote staff, you can partner with RecruitGo to act as the Employer of Record (EOR) for your employees. We have a fixed-fee cost at USD 200 for local employees and USD 300 for foreign employees in Thailand on top of the gross salary. 

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!