Build Your Thailand Team. We Handle Everything Else.
Thailand sits at the heart of ASEAN's digital economy with strong talent in tech, manufacturing, and hospitality. RecruitGo handles employment contracts, payroll, social security, tax, and compliance under the Labour Protection Act so you can start hiring in 7 business days.
What Is an Employer of Record in Thailand?
An Employer of Record (EOR) is a locally registered company that legally employs workers in Thailand on your behalf. RecruitGo's Thai entity becomes the legal employer. We sign the employment contract, register employees with the Social Security Office (SSO), withhold and file personal income tax (PIT) through the monthly PAYE system, and manage all reporting required under the Labour Protection Act B.E. 2541 (1998) and its subsequent amendments.
You retain full control over the employee's work, schedule, and responsibilities. They report to you, work on your projects, and function as part of your team. We handle everything that Thai labour law places on the employer.
Without EOR: Setting up a Thai limited company (Co., Ltd.) requires at least 2 shareholders (reduced from 3 since February 2023), minimum registered capital of THB 2 million (higher for work permit sponsorship), and foreign ownership is capped at 49% unless you obtain BOI promotion. The process typically takes 3 to 6 months. See full EOR vs entity comparison →
Who Should Use EOR in Thailand?
What It Costs to Hire Through EOR
Thailand has one of the lightest statutory contribution burdens in Southeast Asia. Social security is the primary employer cost at 5%, capped at THB 875/month as of January 2026. There is no mandatory 13th month pay, no mandatory bonus, and no equivalent of Indonesia's THR or severance reserve. From October 2026, the new Employee Welfare Fund (EWF) adds a further 0.25% of wages for employers with 10+ employees who do not already offer a provident fund.
| Component | Monthly (THB) | Rate |
|---|---|---|
| Gross salary | 35,000 | — |
| Social Security Fund (SSF) | 875 | 5% (capped at THB 17,500 base) |
| Workmen’s Compensation Fund | ~70–350 | 0.2%–1% (by industry) |
| Employee Welfare Fund (from Oct 2026) | ~88 | 0.25% (no cap) |
| Total loaded cost (before EOR fee) | ~36,033\u201336,313 | ~103\u2013104% |
* Social security cap increased from THB 15,000 to THB 17,500 effective January 2026 (max employer contribution now THB 875/mo). Workmen's Compensation rates vary by industry risk class. The Employee Welfare Fund (EWF) takes effect October 1, 2026, at 0.25% of wages for both employer and employee, with no wage ceiling. Employers who already provide a qualifying provident fund are exempt from EWF. EOR management fee starts from $49.99/month and is not included above.
How this compares: Thailand's total employer statutory cost is only 3\u20134% above gross salary, the lowest among RecruitGo's markets. Compare this to Malaysia (~15\u201318%), Philippines (~18\u201322%), Vietnam (~23.5%), or Indonesia (~30\u201340%). The social security cap means that for employees earning above THB 17,500/month, the employer cost as a percentage decreases as salary increases.
How Hiring Works Through EOR
You share the role, salary range, location (Bangkok, Chiang Mai, or EEC zone), and start date. We confirm compliance requirements and return a cost breakdown within 24 hours.
We draft an employment contract compliant with the Labour Protection Act, register the employee with the Social Security Office (SSO), and set up monthly PAYE withholding with the Revenue Department. If probation applies, we cap it at 119 days.
We run monthly payroll, calculate and remit social security contributions (at the new 2026 THB 17,500 cap), process PIT withholding, and provide payslips. Overtime, holiday pay, and shift differentials are calculated automatically.
Thai labour law evolves through amendments to the Labour Protection Act, Revenue Department orders, and SSO regulation changes. We monitor everything, including the 2026 social security cap increase, the Employee Welfare Fund launch in October 2026, and ongoing minimum wage adjustments across provinces.
EOR vs Thai Entity vs Contractors
| EOR | Thai Co., Ltd. | Contractor | |
|---|---|---|---|
| Time to first hire | 7 business days | 3–6 months | Immediate |
| Setup cost | None | THB 2M+ capital | None |
| Foreign ownership | Not applicable | 49% cap (unless BOI) | Not applicable |
| Compliance risk | Handled by EOR | Your responsibility | High |
| Work permit sponsorship | Limited | Full rights | Not applicable |
| Best for | 1–15 people, testing | 20+, permanent ops | Short-term projects only |
The 49% ownership issue: Thailand restricts foreign ownership of most companies to 49%, which is the primary reason many foreign companies cannot simply set up their own entity. BOI (Board of Investment) promotion can unlock 100% foreign ownership, but the application process takes months and is limited to promoted activities. EOR bypasses this restriction entirely because you are not forming a Thai company.
Employment Contracts in Thailand
Thai law does not mandate written contracts for all employment, but they are strongly recommended and required for certain terms. In practice, all EOR arrangements use written contracts specifying salary, duties, working hours, benefits, and termination conditions.
Indefinite Employment
The default under Thai law
Fixed-term Contract
Limited to specific circumstances
The 119-day probation rule: Thai law does not have a statutory probation period. However, the Labour Protection Act requires severance pay for any employee who has worked 120 days or more. This is why probation in Thailand is almost always set at 119 days. If you dismiss an employee before 120 days, no severance is owed. After 120 days, the full severance scale applies. Your EOR ensures probation periods are set and managed correctly.
Personal Income Tax (PIT)
Thailand uses a progressive PIT system. Employers withhold tax monthly through the PAYE (Pay As You Earn) system and file with the Revenue Department by the 7th of the following month (or the 15th if filing electronically). Annual PIT returns are due by March 31.
| Annual taxable income (THB) | Rate |
|---|---|
| Up to 150,000 | 0% (exempt) |
| 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% |
| Over 5,000,000 | 35% |
Taxable income is calculated after deductions including a personal allowance of THB 60,000, spouse allowance of THB 60,000, child allowance of THB 30,000 per child, and social security contributions. Tax residents (those who stay in Thailand for 180 days or more in a tax year) are taxed on worldwide income. Your EOR calculates monthly withholding, files with the Revenue Department, and issues annual withholding certificates (Phor. Ngor. Dor. 1) to employees.
2026 tax note: Thailand has been tightening rules on taxing foreign-sourced income brought into the country, following Revenue Department Order No. Por 161/2566. This affects expatriates and digital nomads who are Thai tax residents. Your EOR monitors these changes and ensures compliant tax treatment.
Social Security Fund, Workmen's Compensation, and Employee Welfare Fund
Thailand has three mandatory employer programs. The social security system changed significantly in January 2026 with the first cap increase in over a decade. The Employee Welfare Fund (EWF), long dormant since its creation in 1998, launches on October 1, 2026. Your EOR handles registration, monthly calculation, and remittance for all programs.
| Program | What it covers | Employer rate | Employee rate |
|---|---|---|---|
| Social Security Fund (SSF) | Sickness, maternity, disability, death, child allowance, old-age pension, unemployment | 5% (capped at THB 875/mo) | 5% (capped at THB 875/mo) |
| Workmen’s Compensation Fund | Work-related injury, illness, and death | 0.2%–1% (by industry) | None |
| Employee Welfare Fund (from Oct 2026) | Lump-sum payout on termination, resignation, retirement, or death | 0.25% (no cap) | 0.25% (no cap) |
2026 SSF cap increase: Effective January 1, 2026, the wage ceiling for social security contributions increased from THB 15,000 to THB 17,500 per month. This means the maximum monthly contribution rose from THB 750 to THB 875 for both employer and employee. This is the first increase in over a decade and will be followed by further increases to THB 20,000 in 2029 and THB 23,000 in 2032.
Employee Welfare Fund (EWF): Starting October 1, 2026, employers with 10 or more employees must contribute 0.25% of each employee's wages (no wage ceiling) to the EWF. Employees contribute the same rate via payroll deduction. The rate rises to 0.5% from October 2031. Employers who already provide a qualifying provident fund or comparable welfare scheme are exempt. Unlike the SSF, the EWF has no cap on the wage base used for calculations.
Unlike Malaysia (EPF at 12\u201313%), the Philippines (SSS at ~10%), or Vietnam (BHXH at 17.5%), Thailand's social security system is capped at a flat maximum. This means that for a THB 50,000/month employee, the employer pays just THB 875 (1.75% effective rate), compared to 13% in Malaysia or 17.5% in Vietnam.
Employee Benefits and Leave Entitlements
Mandatory leave entitlements
Common additional benefits
Thailand has no mandatory 13th month pay, bonus, or provident fund. However, competitive employers typically offer:
Songkran planning: The Songkran holiday (Thai New Year, April 13\u201315) is Thailand's most significant holiday, similar to Tet in Vietnam or Lebaran in Indonesia. Many companies extend the break to a full week. Productivity typically drops in the week before and after. Plan project timelines accordingly.
Termination Rules and Severance Pay
Thailand is not an at-will employment market. Unless the employee has committed serious misconduct (as defined by law), employers must provide advance notice and pay severance based on length of service. Thai Labour Courts strongly favour employees in disputes.
Severance pay schedule
| Length of service | Severance pay |
|---|---|
| Less than 120 days | None |
| 120 days–1 year | 30 days’ wages |
| 1–3 years | 90 days’ wages |
| 3–6 years | 180 days’ wages |
| 6–10 years | 240 days’ wages |
| 10–20 years | 300 days’ wages |
| 20 years or more | 400 days’ wages |
Termination without severance (serious misconduct)
An employer can terminate without severance only for specific grounds defined in Section 119 of the Labour Protection Act:
Advance notice: Either party must give at least one full pay period's advance notice of termination (typically 30 days). Payment in lieu of notice is permitted. If the employer fails to provide notice or pay, the termination can be challenged at the Labour Court. Your EOR manages the full termination process including documentation, notice, severance calculation, and final pay.
Regional Minimum Wages (2026)
Thailand sets minimum wages by province, adjusted periodically by the National Wage Committee. As of July 2025, Bangkok joined the highest tier at THB 400/day. The THB 400 rate also applies nationwide to hotels (types 2, 3, and 4) and entertainment venues regardless of province.
| Rate (THB/day) | Provinces | Approx. monthly |
|---|---|---|
| 400 | Bangkok, Phuket, Chonburi, Rayong, Chachoengsao, Koh Samui + hotels (types 2–4) and entertainment venues nationwide | ~THB 8,700 |
| 380 | Mueang Chiang Mai district, Mueang Songkhla district | ~THB 8,265 |
| 372 | Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon, Nakhon Pathom | ~THB 8,091 |
| 352–363 | Khon Kaen, Ayutthaya, Saraburi, Prachinburi, and other industrial provinces | ~THB 7,656–7,895 |
| 337 | Narathiwat, Pattani, Yala (Deep South) | ~THB 7,329 |
Monthly estimates based on 21.75 working days. These are legal floors. Skilled roles in Bangkok typically start at THB 18,000\u201325,000 for entry-level and THB 30,000\u201360,000+ for experienced professionals in tech, finance, and engineering.
Working Hours, Overtime & Holidays
Standard working hours are 8 hours per day and 48 hours per week. Hazardous work is capped at 7 hours/day and 42 hours/week. Most office-based roles follow a 5-day, 40-hour schedule.
| Scenario | Rate |
|---|---|
| Overtime on a regular workday | 1.5x hourly rate |
| Work on a rest day (regular hours) | 1.0x daily rate (additional) |
| Overtime on a rest day | 3.0x hourly rate |
| Work on a public holiday | 1.0x daily rate (additional to holiday pay) |
| Overtime on a public holiday | 3.0x hourly rate |
Overtime is limited to 36 hours per week. Employees are entitled to at least 1 rest day per week. Thailand has 13 paid public holidays in 2026, including the extended Songkran period. If a holiday falls on a rest day, the next working day is a substitute holiday. Your EOR tracks all holiday, overtime, and shift calculations automatically.
Frequently Asked Questions
RecruitGo’s EOR management fee starts from $49.99/employee/month. On top of that, you pay the employee’s gross salary plus social security (5% capped at THB 875/month as of 2026) and Workmen’s Compensation (0.2–1%). From October 2026, the Employee Welfare Fund adds 0.25% of wages. Thailand has the lowest statutory employer burden of any RecruitGo market at roughly 3–4% above gross salary.
Typically 7 business days from signed agreement to the employee’s first day. This compares to 3–6 months for setting up a Thai Co., Ltd., especially when factoring in the foreign ownership restrictions and BOI application timeline.
Thai law requires severance pay for any employee with 120 or more days of service. Setting probation at 119 days gives the employer a window to assess fit without triggering severance obligations. After 120 days, even a dismissal for poor performance requires severance.
No. Unlike the Philippines (13th month pay), Indonesia (THR), or Vietnam (Tet bonus custom), Thailand has no statutory bonus requirement. Annual bonuses are discretionary and depend on company policy. However, bonuses of 1–4 months are common in Thai corporate culture.
Effective January 1, 2026, the wage ceiling for social security contributions increased from THB 15,000 to THB 17,500 per month. This raised the maximum monthly contribution from THB 750 to THB 875 for both employer and employee. Further increases are planned for 2029 (THB 20,000 cap) and 2032 (THB 23,000 cap).
Launching October 1, 2026, the EWF requires employers with 10+ employees to contribute 0.25% of each employee’s wages (no cap). Employees contribute the same rate. Employers who already provide a qualifying provident fund are exempt. The rate rises to 0.5% from October 2031.
Not without BOI promotion or a Foreign Business License. Thai law restricts foreign ownership to 49% for most business activities. This is the primary reason many foreign companies use EOR instead of setting up their own entity. EOR bypasses the restriction entirely.
Thailand is not an at-will market. Employers must provide at least one full pay period’s advance notice (typically 30 days) and pay severance based on tenure (30–400 days’ wages). Dismissal without severance is only allowed for serious misconduct as defined in Section 119 of the Labour Protection Act.
