# Hire in Thailand

Source: https://overseashire.com/hire/thailand · verified 2026-10-05 · confidence medium

A growing tech and creative talent pool in Bangkok at lower cost than Singapore, with strong customer-support and operations experience. Time zone is convenient for Asia-Pacific teams but is a stretch for the Americas.

## Employer cost
Employer on-costs 2–6% of gross salary. Statutory employer payroll charges are low: Social Security Fund 5% of wages capped at THB 17,500/month (max THB 875/month per party from 1 Jan 2026), plus Workmen's Compensation (rate depends on risk class, sample THB 40/month on a 50,000 salary per Payoneer, ~0.1%-ish for office work). The percentage falls as salary rises (about 1.75% at THB 50,000; 5% at or below THB 17,500). Excludes the customary 13th-month bonus, provident fund, health insurance and the severance liability, which can add a lot.

| Contribution | Rate | Notes |
|---|---|---|
| Social Security Fund (SSF) | 5% of wages up to THB 17,500/month (max THB 875) | Wage ceiling rose from THB 15,000 to THB 17,500 on 1 Jan 2026; further legislated increases to THB 20,000 (2029) and THB 23,000 (2032). |
| Workmen's Compensation Fund | Varies by risk class (sample THB 40/month on THB 50,000 salary) | Annual contribution based on payroll and class rate. |

Mandatory benefits: Annual paid leave of 6 working days after one year; 13 public holidays (employer must give at least 13); Sick leave up to 30 days paid per year; Maternity leave 98 days; Severance pay on dismissal without cause; Overtime and rest-day pay

## Rules
- Payroll: monthly (some pay twice a month)
- Probation: No statutory maximum, typically up to 119 days because severance eligibility starts at 120 days of service.
- Notice and severance: Termination without cause requires notice of at least one pay period (up to 3 months) or pay in lieu, and statutory severance based on tenure: 120 days to <1 year = 30 days' wages; 1 to <3 years = 90 days; 3 to <6 years = 180 days; 6 to <10 years = 240 days; 10 to <20 years = 300 days; 20+ years = 400 days.
- Termination: Dismissal with unfair cause can lead to the Labour Court ordering reinstatement or compensation. Dismissal for serious misconduct (specified list in the Labour Protection Act) removes severance but must be properly documented. Fixed-term contracts do not protect against back-claims if renewals are repeated.
- Working time: Up to 8 hours/day and 48 hours/week (40 in hazardous work). Overtime at 1.5x on working days and up to 3x on holidays.
- Paid leave: Minimum 6 working days after 1 year of service (many employers give 10-15). 13 public holidays minimum.
- Minimum wage: Varies by province, roughly THB 337-400 per day in 2025; 2026 rates not confirmed. Check the Ministry of Labour notification.

## Contractors
Contractors are common in Thailand's tech and creative scenes, and the Labour Protection Act looks at the substance of the relationship (control, fixed hours, integration). Misclassified workers may claim employee entitlements such as severance and overtime. Contractor risk is considered moderate.

## EOR
Foreign companies without a Thai entity cannot employ staff directly. EOR avoids setting up a Thai company (which takes months). Work permits are required for foreign nationals, but hiring Thai nationals needs none.
Onboarding: EOR Days to ~2 weeks (providers advertise 'days', no verified specific figure); own entity Months (Payoneer: 'takes months'; specific duration unverified).

## FAQ
**What are the employer social security costs in Thailand?** 5% of wages up to THB 17,500, so at most THB 875 a month per party in 2026, plus a small Workmen's Compensation contribution.

**How is severance calculated?** By length of service: 30 days' pay after 120 days, 90 days after 1 year, 180 after 3, 240 after 6, 300 after 10, 400 after 20 years.

**How many days annual leave?** The statutory minimum is 6 working days after one year, plus 13 public holidays.

**How long can probation be?** There is no statutory maximum; 119 days is typical since severance applies from 120 days.

Unverified: Workmen's Compensation rate range; 2026 provincial minimum wage figures; Notice period detail (at least one pay period, max 3 months) from general knowledge of Labour Protection Act s.17; Sick leave, maternity figures from general knowledge; Own-entity setup time; EOR onboarding time

Sources:
- https://www.bakermckenzie.com/en/insight/publications/alerts/2025/12/thailand-higher-wage-base-for-ssf-contributions
- https://www.payoneer.com/resources/workforce-management/eor-country-guides/thailand/
- https://www.secondtalent.com/resources/thailand-payroll-benefits-tax/
- https://remofirst.com/country-guide/thailand
- https://www.toptal.com/hireglobal/employer-of-record-thailand-guide

Not legal or tax advice.