Thai Baht is the official currency of Thailand. Its currency symbol is ฿, THB.
Bangkok officially known in Thai as Krung Thep Maha Nakhon is the capital and most populous city.
Thailand is home to 71 living languages, but Thai is it's official language.
Salaries are paid monthly and employers are not required to, but it is customary to pay a 13 month salary bonus.
Thailand has 16 public holidays.
GROW YOUR TEAM IN THAILAND
NO ENTITY, NO PROBLEM
To start growing your team in Thailand, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
PROS AND CONS OF HIRING IN THAILAND
Hiring in Thailand opens a key strategic location between both India and China, which can help your business penetrate the Asian market and unlock new potential. Moreover, the Thai government caters towards supporting businesses in their expansion and thus the registration process is made relatively uncomplicated compared to other ASEAN countries. For instance, Thailand is currently ranked 17th in the World Bank’s ease of doing business rankings. Despite this, Thailand has a corporate tax level of 30% on net income and investment regulations can often be complicated, with increased government intervention for foreign investors.
WHY THAILAND S IS GOOD FOR REMOTE WORKERS
Thailand hosts one of the largest communities of digital nomads globally alongside over four million foreign workers. With an emphasis on remote working, there are many public spaces dedicated to digital nomads for them to utilise and socialise with each other, further building the community. Thailand has become favoured by digital nomads for a multitude of reasons including its low cost of living, reliable telecom infrastructure, and low tax rates.
WORKING TIME AND OVERTIME IN THAILAND
The normal working day in Thailand is eight hours. If the work is physically exhausting, the maximum number of hours is usually seven per day and 42 per week. Employees must be given at least one hour's break per day. Overtime cannot exceed 36 hours per week and must be paid at a rate of 1.5-3x the normal hourly salary of qualifying employees. At weekends, overtime pay is equal to 3x the base salary. Non-qualifying employees, such as officers of the company, should be paid 2x their salary.
ANNUAL LEAVE AND PUBLIC HOLIDAYS
Employees are entitled to a statutory minimum of six vacation days per year, after completing their first year of service. In practice, it is common to grant professional employees 10-15 days of paid vacation per year.
There are 16 public holidays.
January 1st: New Year's Day
January 3rd: New Year Holiday
February 1st: Chinese New Year
February 16th: Makha Bucha Day
April 6th: Chakri Day
April 13th-15th: Songkran Festival
May 2nd: Labor Day
May 13th: Royal Ploughing Ceremony
May 16th: Visakha Bucha Day
June 3rd: Her Majesty the Queen's Birthday
July 13th:Asahna Bucha Day
July 28th: King Vajiralongkorn's Birthday
October 13th: Passing of His Majesty the Late King
October 23rd: Chulalongkorn Memorial Day
December 5th: His Majesty the Late King's Birthday
December 10th: Constitution Day
December 25th: Christmas Day
PROBATION PERIOD IN THAILAND
Probation periods are typically no more than 120 days. This is not a statutory requirement.
RESIGNATION AND DISMISSAL IN THAILAND
An employer or employee can terminate an employment contract by giving notice in writing to the other party. This is generally a one month notice period, unless other terms are provided for under the employment contract. The employer does not need to give notice (or payment in lieu of notice) if the employment relationship is terminated due to serious misconduct by the employee. Statutory severance pay is based on the employee's length of service within the company, according to the following schedule:
- 120 days-1 year’s service: 30 days’ basic salary
- 1-3 years’ service: 90 days’ basic salary
- 3- 6 years' service: 180 days’ basic salary
- 6-10 years’ service: 240 days’ basic salary
- 10-20 years’ service: 300 days’ basic salary
- 20+ years’ service: 400 days’ basic salary
The employee is not entitled to any severance payment if the employment relationship is terminated due to their serious misconduct.
CONTRACT OF EMPLOYMENT IN THAILAND
There is no requirement under Thai labour law to have a written employment contract. However, in practice, it is advisable to set out key terms and conditions of employment in writing.
MATERNITY LEAVE IN THAILAND
Pregnant employees are entitled up to 98 days of maternity leave; 45 of which are paid by the employer, 45 by the social security fund, and the remaining 8 unpaid (or paid by the employer by prior agreement). There is no statutory requirement for paternity leave.
SICKNESS LEAVE IN THAILAND
Under Thai labour law, an employee is entitled to sick leave of up to 30 paid working days per year. If the employee is out for 3 or more consecutive days, the employer has the right to request a medical certificate. Days taken off due to an injury or illness encountered at work cannot be deducted from the sick leave balance.
There are two types of employee contributions in Thailand: Social Security Fund and Provident Fund. The social security contribution rate is 5% on a capped remuneration of THB 15,000 per month. All employees are required to contribute to a social security fund an amount equal to 5% of their salary, up to a maximum contribution of THB 750 per month. Employers and the government contribute an additional 5% each.
HEALTHCARE AND INSURANCE
Thailand has one of the world’s best healthcare systems, having opened universal health coverage to all citizens in 2002. Most Thai citizens, therefore, receive health coverage through that universal coverage scheme, with civil servants and their families receiving coverage via the civil service welfare system. Private employees are often covered by a social security system that is supported by payroll contributions. Foreign citizens who hold private sector jobs in Thailand may be eligible for this coverage.
FOREIGN NATIONALS IN THAILAND
Foreign nationals who wish to work in Thailand must obtain work permits from the Employment Department. To be eligible for a work permit, a foreign national must enter Thailand on a Non Immigration Category B (Non-B) visa.
Visas in the Thailand
The granting of a work permit is discretionary, based on such criteria as the nature of the work, the knowledge and skills of the applicant, the capital of the employer, and the proportion of Thai national employees to foreign national employees. After all required documents are received, the time for processing a work permit can range from approximately a few days up to two weeks, at the discretion of the authority. Applicants may not begin working in Thailand while their work permit applications and other papers are being processed. Work permits are usually granted for one year, after which they can be renewed.
MINIMUM WAGE IN THAILAND
Thailand's minimum wage ranges from THB 300 per day, depending on the cost of living in various provinces.
|Net Taxable Income||
Rate on Excess
|0 - 150,000||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%|
SALARY PAYMENTS IN THAILAND
The payroll cycle in Thailand is generally monthly and is usually paid on the last working day, as agreed within the employment contract. Though not required by law, it is customary for employers to pay a 13th month salary.
SOCIAL SECURITY CONTRIBUTIONS IN THAILAND
Employees contribute 5% of their salary to social security, in addition to a 5% contribution by their employer and a further 5% by the government.Contributions are capped at a qualifying earning threshold of THB 15,000 per month
SOCIAL CONTRIBUTIONS RATES IN THAILAND
Employers are required to pay 4% and employees 8% as social security contribution.
WORKER MISCLASSIFICATION IN THAILAND
Similar to other countries, Thailand has strict rules on classifying individual contractors and full-time employees differently. Misclassifying your workers can put your business at risk of fines.