Outsource Thai Payroll to RecruitGo.
Thai payroll centers on Social Security Fund contributions (with a new higher wage ceiling from January 2026), monthly income tax withholding via PND 1, the Workmen's Compensation Fund, and a new Employee Welfare Fund. This guide covers each component, what it costs, and where companies get it wrong.
How Thai Payroll Works
Thai payroll requires employers to manage three core obligations each month: Social Security Fund (SSF) contributions to the Social Security Office (SSO), income tax withholding (PIT/PND 1) to the Revenue Department, and the Workmen's Compensation Fund (WCF) to the SSO. Since October 2025, a new Employee Welfare Fund (EWF) adds a fourth contribution for companies with 10 or more employees.
Pay frequency is typically monthly. Thailand's payroll structure is simpler than the Philippines (four agencies) or Indonesia (five BPJS programs). The Social Security Fund is the main statutory contribution at 5% each from employer and employee, capped at a relatively low wage ceiling. Income tax withholding follows progressive rates from 0% to 35% and is filed monthly by the employer.
Like Malaysia, Thailand has no mandatory 13th month pay and no mandatory religious holiday bonus (THR). Annual bonuses are discretionary and market-driven. This keeps the statutory cost burden lower than other Southeast Asian markets, typically adding 7 to 10% above gross salary for employer contributions.
Key 2026 change: Effective January 1, 2026, the Social Security Fund wage ceiling increases from THB 15,000 to THB 17,500 per month. This raises the maximum monthly contribution from THB 750 to THB 875 per party. The increase is part of a phased plan: THB 20,000 in 2029 and THB 23,000 in 2032. For employees earning above the old ceiling, this means higher deductions and higher employer costs starting January 2026.
Personal Income Tax Withholding (PND 1)
Employers in Thailand must withhold personal income tax (PIT) from employee salaries each month and remit it to the Revenue Department via Form PND 1. Tax is calculated on net taxable income after deducting allowable expenses (a standard 50% of employment income, capped at THB 100,000), personal allowances (THB 60,000 for the taxpayer, THB 60,000 for a spouse with no income, THB 30,000 per child), and eligible deductions such as social security contributions and provident fund.
| Annual Net Taxable Income (THB) | Tax Rate |
|---|---|
| 0 to 150,000 | Exempt |
| 150,001 to 300,000 | 5% |
| 300,001 to 500,000 | 10% |
| 500,001 to 750,000 | 15% |
| 750,001 to 1,000,000 | 20% |
| 1,000,001 to 2,000,000 | 25% |
| 2,000,001 to 5,000,000 | 30% |
| Over 5,000,000 | 35% |
Monthly withholding is calculated by annualizing the employee's monthly income, applying deductions and the progressive rates, then dividing the annual tax by 12. The employer files PND 1 by the 7th of the following month (paper) or the 15th (electronic filing, under the Revenue Department's 8-day extension policy). At year-end, employees file PND 91 (employment income only) or PND 90 (multiple income types) by March 31 (or approximately April 8 for e-filing).
2024 foreign income rule: From January 1, 2024, Thai tax residents (180+ days in Thailand) are taxed on foreign-sourced income remitted into Thailand in the year of receipt. Previously, foreign income was only taxable if remitted in the same year it was earned. This affects expats who receive salary from offshore entities or have foreign investment income. Employers must ensure that foreign employees' tax withholding accounts for any Thai-sourced components.
Workmen's Compensation, Employee Welfare Fund, and Provident Fund
Workmen's Compensation Fund (WCF)
The WCF provides compensation for employees who suffer work-related injuries, illnesses, or death. It is funded entirely by the employer at a rate of 0.2% to 1.0% of total annual payroll, depending on the industry risk classification. Office-based and tech roles typically fall in the 0.2% category. The WCF is paid annually to the Social Security Office, not monthly.
Employee Welfare Fund (EWF) — New from October 2025
Under a new regulation published in November 2024, employers with 10 or more employees must register with the Employee Welfare Fund. Both employer and employee contribute 0.25% of wages from October 2025 through September 2030, increasing to 0.5% from October 2030. The fund provides financial support for employees in cases of termination, death, or other qualifying events. Employers who already offer a Provident Fund covering all employees (including temporary staff) may be exempt.
Provident Fund (voluntary)
Unlike Malaysia's mandatory EPF, Thailand's Provident Fund is voluntary. If offered, both employer and employee contribute between 2% and 15% of salary. Contributions are tax-deductible up to THB 500,000/year for the employee. The Provident Fund is a significant tool for attracting and retaining talent, especially in competitive sectors like tech and finance. Many multinational employers offer 5% to 10% matching contributions as part of their benefits package.
| Fund | Employer | Employee | Notes |
|---|---|---|---|
| Social Security (SSF) | 5% (max THB 875/mo) | 5% (max THB 875/mo) | Mandatory. Wage ceiling THB 17,500 (2026). |
| Workmen's Compensation (WCF) | 0.2% to 1.0% | 0% | Employer only. Paid annually. Rate by industry risk. |
| Employee Welfare Fund (EWF) | 0.25% | 0.25% | Mandatory if 10+ employees (since Oct 2025). Exempt if Provident Fund covers all staff. |
| Provident Fund | 2% to 15% | 2% to 15% | Voluntary. Tax-deductible. Powerful retention tool. |
What It Actually Costs to Employ Someone
Complete monthly payroll breakdown for an employee in Bangkok earning THB 40,000/month gross (~USD 1,120). This uses the 2026 wage ceiling of THB 17,500 for SSF calculations.
| Component | Employer Pays | Employee Pays | Notes |
|---|---|---|---|
| Social Security (SSF) | THB 875 | THB 875 | 5% each, capped at THB 17,500 ceiling (2026) |
| Workmen's Compensation (WCF) | THB ~80 | THB — | ~0.2% annual rate / 12 (office/tech risk tier) |
| Employee Welfare Fund (EWF) | THB ~100 | THB ~100 | 0.25% each (if 10+ employees, no Provident Fund) |
| Income Tax (PIT/PND 1) | THB — | THB ~1,625 | Monthly estimate. Single, no dependents. |
| Totals | THB ~41,055 | THB ~2,600 | Employer cost ~103% of gross. Employee take-home ~THB 37,400. |
PIT is approximate and depends on allowances, deductions, marital status, and dependents. WCF estimate based on low-risk office classification (0.2%). No Provident Fund included (voluntary). No mandatory 13th month or THR in Thailand. EOR management fee not included above.
Thailand has one of the lowest statutory employer burdens in ASEAN. At approximately 5.5 to 6.5% above gross salary (SSF + WCF + EWF), Thailand's mandatory employer cost is significantly lower than the Philippines (~14-18%), Indonesia (~15-18%), or Malaysia (~13-15%). However, competitive employers typically add a voluntary Provident Fund (5-10%) and discretionary annual bonuses, which increases the real total cost.
Deadlines, Forms, and Common Mistakes
Monthly filing deadlines
| Obligation | Deadline | Method |
|---|---|---|
| PND 1 (income tax withholding) | 7th of following month (paper) or 15th (e-filing) | Revenue Department e-filing portal |
| SSF contributions | 15th of following month | SSO e-Service portal or authorized banks |
| EWF contributions | 15th of following month (with SSF) | Via SSO system (when applicable) |
Key annual obligations
| Obligation | Deadline |
|---|---|
| Workmen's Compensation Fund (WCF) payment | Annually, within 30 days of SSO notification |
| PND 1 Kor (annual withholding tax certificate per employee) | By end of February of the following year |
| PND 91 / PND 90 (employee annual tax return) | March 31 (or ~April 8 for e-filing) |
| Provincial minimum wage review | Annually (Bangkok THB 400/day for 2026, varies by province) |
Common payroll mistakes
You Pay One Invoice. We Handle the Rest.
When you hire in Thailand through RecruitGo's Employer of Record, all payroll processing is managed by our local team. You do not interact with the SSO, Revenue Department, or any other Thai government agency directly.
We calculate gross-to-net pay, deduct employee SSF contributions and income tax, and pay your employees in Thai Baht on the agreed pay date. Compliant payslips issued monthly in Thai and English.
We register each employee with the SSO, calculate contributions using the current 2026 wage ceiling (THB 17,500), and remit by the 15th of each month. WCF is paid annually at the correct industry risk rate.
We calculate monthly income tax withholding using the progressive rates, file PND 1 electronically by the 15th, and issue annual withholding tax certificates (PND 1 Kor) to each employee by end of February.
We assess whether the EWF applies to your team, handle registration if required, and remit the 0.25% contributions. If a Provident Fund is offered in lieu, we manage the exemption documentation.
You receive a single consolidated invoice covering gross salary, all employer statutory contributions, and EOR fee. No THB bank accounts, no government portal access, no FX management needed.
We monitor the phased SSF ceiling increases (THB 20,000 in 2029, THB 23,000 in 2032), annual minimum wage reviews, Revenue Department updates, and new regulations like the EWF. Payroll calculations update automatically.
Frequently Asked Questions
For a typical employee earning THB 30,000 to 60,000/month, mandatory employer contributions add approximately 5.5 to 6.5% above gross salary (SSF 5% capped + WCF ~0.2% + EWF 0.25%). This is the lowest statutory burden among the four ASEAN markets in our payroll series. However, competitive employers in Thailand typically add a voluntary Provident Fund (5-10%) and discretionary bonuses, which brings the real total cost closer to 15 to 25% above gross depending on the benefits package.
No. Thailand has no statutory 13th month pay, no mandatory THR (religious holiday bonus), and no legally required annual bonus. Bonuses are entirely at the employer's discretion. However, annual bonuses of 1 to 3 months' salary are common in the Thai market, especially in Bangkok's competitive tech, finance, and professional services sectors. Not offering a bonus may put you at a disadvantage for talent retention.
The wage ceiling for SSF contributions increased from THB 15,000 to THB 17,500 per month effective January 1, 2026. The contribution rate stays at 5% each for employer and employee, but the maximum monthly contribution rises from THB 750 to THB 875 per party. This is the first phase of a three-step increase: THB 20,000 in 2029 and THB 23,000 in 2032. Alongside higher contributions, benefit entitlements also increase (sickness, maternity, death, pension amounts all rise).
Yes. Foreign nationals with valid work permits employed under Thai labor law are required to contribute to the Social Security Fund at the same 5% rate as Thai employees, subject to the same wage ceiling. This applies regardless of whether the foreign employee also contributes to social security in their home country. Some bilateral social security agreements may allow exemptions, but these are limited.
The EWF is a new mandatory fund effective October 2025 for employers with 10 or more employees. Both employer and employee contribute 0.25% of wages (increasing to 0.5% from October 2030). The fund provides financial support in cases of termination, unemployment, or death. Employers who already offer a Provident Fund that covers all employees (including temporary staff) may be exempt from the EWF requirement.
Thailand's top personal income tax rate is 35%, comparable to the Philippines (35%) and higher than Malaysia (30%) and Indonesia (35%). However, Thailand's generous personal allowances (THB 60,000 per taxpayer + THB 60,000 for a non-working spouse + THB 30,000 per child) and the 50% employment income deduction (capped at THB 100,000) mean that effective tax rates for mid-level earners are often lower than in comparable markets.
This page focuses specifically on payroll mechanics: SSF contribution rates and the 2026 ceiling increase, income tax withholding via PND 1, the WCF, the new EWF, and compliance deadlines. The EOR Thailand page covers the broader employment picture: employment contracts under the Labour Protection Act, termination and severance, leave entitlements, work permit requirements, and the full cost of hiring through an EOR.
Social Security Fund (SSF)
The Social Security Fund under Section 33 of the Social Security Act covers sickness, maternity, invalidity, death, child allowance, old-age pension, and unemployment benefits. Both employer and employee contribute 5% of the employee's monthly wages, capped at the wage ceiling. Contributions are mandatory for all employees including foreign workers with valid work permits.
The minimum contribution base remains at THB 1,650/month. For employees earning between THB 1,650 and the wage ceiling, contributions are 5% of actual wages. For employees earning above the ceiling, contributions are capped at the maximum amounts shown above. The SSF covers seven benefit categories: sickness, maternity, invalidity, death, child allowance, old-age pension, and unemployment.
Improved benefits from January 2026: Alongside the ceiling increase, benefit entitlements improve. Monthly sickness, disability, and unemployment benefits increase from THB 7,500 to THB 8,750. The childbirth lump sum rises from THB 22,500 to THB 26,250. The death benefit increases from THB 90,000 to THB 105,000. Workers with 15+ years of contributions receive a pension of THB 3,500/month (previously THB 3,000).