How to Hire Employees in Thailand without Entity

Are you a business owner waiting for Thai registration or permits but need to hire employees now? You’re not alone. Waiting for government approval doesn’t have to stall your growth or recruitment plans.

In this article we’ll walk you through lawful, practical ways to hire employees in Thailand without an entity. 

What Options Do You Have to Hire in Thailand Without Opening a Local Entity?

Hiring in Thailand can be challenging without a registered company. Thai labor laws require employers to be legally established for payroll, tax, and social security compliance.

However, if you are still waiting for government approval or do not plan to open an entity yet, you still have options. There are two fully legal and compliant ways to engage local talent without forming a company.

You can either hire through an Employer of Record (EOR) or work with independent contractors. To help you decide what works best, we’ll walk you through both the ways to bring talent on board in Thailand:

1. Use an Employer of Record (EOR) Service

If you plan to build a full-time team quickly, an Employer of Record (EOR) is ideal. This option works well for companies expanding into Thailand but not ready for full incorporation.

For instance, a tech company hiring a software developer, a marketing agency recruiting a local account manager, or a retail brand employing sales staff can use an EOR. Through this arrangement, the EOR becomes the legal employer, while you manage daily tasks, goals, and team performance.

How an EOR Helps You:

• The EOR legally employs your staff under its registered Thai entity.
• It handles payroll, income tax, and social security contributions accurately.
• You maintain operational control over your team’s responsibilities and results.
• It prepares compliant employment contracts and manages work permits for foreign employees.
• The EOR ensures full compliance with Thai labor laws and regulations.

Therefore, this option allows faster hiring, lower risk, and smoother market entry. It’s perfect for companies planning long-term growth or testing operations in Thailand.

2. Hire an Independent Contractor

If you need short-term support or project-based skills, hiring an independent contractor may suit you better. This method is flexible and cost-effective, especially when you need expertise for specific tasks.

For example, a digital agency outsourcing graphic design, a construction firm hiring a local consultant, or a software business engaging a UX designer for three months can all benefit from this setup. Contractors work independently, handle their own taxes, and use their own equipment.

How Contractor Hiring Works:

• You sign a service agreement outlining tasks, scope, and payment terms.
• The contractor works independently, managing their own tools, schedule, and methods.
• You pay based on project milestones or deliverables, not fixed monthly wages.
• This setup suits remote, creative, or project-based roles that need flexibility.
• However, ensure the role doesn’t resemble full-time employment to stay compliant.

This method offers flexibility and efficiency, making it ideal for temporary or specialized freelance work.

Onboarding, Payroll, and Compliance for Your New Hire in Thailand

Once you’ve chosen your hiring structure, the next step involves proper onboarding and compliance. This stage ensures your worker is legally integrated while aligning with Thailand’s labor requirements. 

1. The Offer and Contract Stage

After selecting your candidate, the process begins with the employment or service agreement.

For EOR hires, the EOR prepares a Thai-language employment contract following the Thai Labour Protection Act (LPA). It clearly defines job details, salary, working hours, statutory leave, and termination clauses. The EOR manages the entire signing process and ensures compliance with local employment law.

In the case of contractors, you’ll need a Service Agreement that specifies project scope, deliverables, payment schedule, and ownership rights. The contract should emphasize the contractor’s independent status, protecting your business from potential misclassification issues.

2. Statutory Registrations and Legal Compliance

If you’re hiring through an EOR, these legal requirements are handled for you. However, if you operate under your own entity, you’ll be responsible for completing each registration.

• Social Security Fund (SSF): Both employer and employee contribute 5% of salary, capped at THB 750 each per month. This fund supports healthcare, retirement, and unemployment benefits. It must be submitted by the 15th of the following month.
• Personal Income Tax (PIT): The EOR withholds and submits progressive tax rates from 0% to 35% each month. These taxes are remitted to the Thai Revenue Department for full legal compliance.
• Workmen’s Compensation Fund (WCF): Employers contribute 0.2% to 1.0% of annual payroll, based on industry risk level. This contribution covers medical expenses and compensation for work-related injuries or illnesses.

Note on Contractors: Independent Contractors are classified as self-employed individuals and are not registered under these statutory employee programs. They are responsible for managing their own tax affairs (including Personal Income Tax) and voluntary social security. 

3. Payroll, Benefits, and Leave Management

As of January 1, 2025, employers must follow Thailand’s updated minimum wage rates, ranging from THB 337 to THB 400 per day, depending on the province. When hiring through an EOR, payroll must be processed in Thai Baht (THB) and paid into a local Thai bank account. Monthly payment cycles are the standard in Thailand. Furthermore, the EOR issues detailed payslips showing gross income, tax, and social contributions.

Thai labor law provides several mandatory benefits and leave entitlements, which the EOR ensures are properly administered:

• Annual Leave: Minimum 6 paid days per year after one year of service.
• Public Holidays: At least 13 national holidays annually.
• Sick Leave: Up to 30 days of paid leave per year.
• Maternity Leave: 98 days, including 45 days paid by the employer.
• Social Security Benefits: Coverage includes health care, unemployment, and pensions.

For contractors, the arrangement is different. They are self-managed and not entitled to paid leave or statutory benefits. Instead, they handle personal insurance, taxes, and savings independently.

4. Work Permits and Visas for Foreign Nationals

If your new hire is a non-Thai citizen, they must hold a valid Non-Immigrant B Visa and Work Permit before starting employment.

An EOR simplifies this step since it serves as the official sponsor for visa and permit applications. This eliminates complex paperwork and ensures full compliance with immigration rules.

In contrast, if your company sponsors the permit directly, you must meet specific requirements such as registered capital thresholds — usually around THB 2 million per foreign employee. These requirements vary depending on the role and business sector.

5. HR Management and Daily Operations

Once onboarding is complete, focus shifts to effective management and communication. You remain responsible for guiding your new hire’s goals, tasks, and performance standards.

To promote strong integration, establish clear communication channels using tools like Slack, Zoom, or Microsoft Teams. Regular check-ins and team meetings help maintain alignment with company culture.

For employees under an EOR, you can also rely on the provider for HR administration, leave tracking, and compliance updates. In contrast, contractors require less oversight. You should focus on project outcomes, timelines, and deliverables rather than daily work processes.

Simplify Hiring and Secure Your Thai Expansion with RecruitGo

Failing to register employees with Thailand’s Social Security Fund can result in fines up to THB 20,000 or even imprisonment for the responsible director. Such penalties remind us that hiring in Thailand is only the beginning, not the end. Compliance is an ongoing responsibility that requires attention every month and precision in every process.

To manage this effectively, you need a reliable partner who supports more than just hiring. RecruitGo ensures your business remains fully compliant while you focus on leading your team and growing your operations.

Here’s how RecruitGo supports you: 

• Handles Monthly Payroll and Taxes: Ensures accurate salary processing, PIT deductions, and timely tax submissions.
• Manages Statutory Contributions: Registers and maintains employee records with the Social Security and Workmen’s Compensation Funds.
• Monitors Legal Updates: Keeps you compliant with any changes in Thai labor or tax regulations.
• Supports Work Permits and Visas: Manages renewals and documentation for foreign employees, preventing costly delays.
• Maintains HR Records: Tracks leave, overtime, and employee changes to meet recordkeeping requirements.

Need to hire employees in Thailand without setting up an entity? Fill out the form below, and our team will get in touch to help you start hiring quickly.