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Wages and working hours
To some extent, working hours in Thailand are up to the company and its employees, through standard working hours cannot exceed 48 hours per week. Employees should have at least one day off per week, and they should not work more than six days in a row.
Overtime is permissible, though it may not exceed 36 hours per week. If employees work overtime on weekdays, they should receive 150 percent of their base salaries for those hours. If they work overtime on weekends, they should generally receive three times their base salary.
The minimum wage in Thailand varies by province. As of 2020, the country’s minimum wages ranged from 313 baht to 336 baht per day — about 10 to 10.80 U.S. dollars.
Legally, employees in Thailand must receive a minimum of six vacation days annually. In practice, however, most companies provide their employees with 10 to 15 days of paid vacation each year. This leave may carry into the next year if employees do not use it.
Employees in Thailand are also legally entitled to a few additional formal types of leave:
If their employers are willing, Thai employees may take a few additional leave types, including compassionate leave, hospitalization leave, marriage leave, Hajj pilgrimage leave for Muslim employees, and monkhood leave for Buddhist men.
Thai labor law also requires employers to provide employees with 30 days of paid sick leave separate from their vacation leave. A company may request a medical certificate if the employee misses three or more consecutive days of work. If employees become sick or injured because of job duties, however, they may take time off without using their sick leave.
Female employees in Thailand may take maternity leave for the birth of their children. Pregnant employees may take 98 days of paid maternity leave. The company pays 45 days, the social security fund pays 45 days, and the remaining eight days are usually unpaid, though sometimes the employer agrees to pay them. Companies may also provide paternity leave at their discretion.
In addition to this time off, paid leave in Thailand includes 13 public holidays. These add up to 15 paid days off, since Songkran, Thailand’s world-famous Buddhist New Year and water festival, lasts for three days.
Anti-discrimination law
Thailand’s Ministry of Labour Relations prohibits numerous forms of hiring and workplace discrimination. Employers may not discriminate against job candidates or employees for any of the following characteristics:
To minimize the appearance of discrimination, your company will want to keep its hiring processes free from questions on these topics. You should also tailor your job advertisement language so it reads inclusively for all candidates.
What does a company need to hire employees in Thailand?
Hiring new employees in Thailand can be a lengthy and complicated process, especially if your company elects to set up a subsidiary. You’ll need to decide how to incorporate, develop a budget, and learn the dozens of legal requirements you must adhere to. Establishing a business presence in Thailand is particularly complicated because of the Foreign Business Act, which restricts international operations, often requiring special permissions before international companies can start doing business in Thailand.
If you decide to set up a subsidiary, here are a few of the requirements you will need to fulfill:
An alternative option is to work with a professional employer organization (PEO), also known as an Employer of Record (EOR). A reliable global EOR will take on the administrative, legal, and human resources work of hiring new employees for you, so you’ll be able to focus on other aspects of your business. Because a good EOR already has an established presence in the country, you can skip entity setup and start hiring right away.
Hiring remote employees in Thailand
As you add new employees to your team, your obligations in your home country may require you to interview and hire remotely. Here are a few tips for convenient, streamlined remote hiring:
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We offer a diverse range of job vacancies spanning various industries, expertise, and locations, including Bangkok, Rayong, Phra Nakhon Si Ayutthaya, Chachoengsao and other business and industrial areas across Thailand.
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From beautiful temples, stunning beaches, and rich history to affordable business costs, a growing economy, and a wealth of vital exports, several features make Thailand an attractive place for international business expansion.
As your company begins to put its teams together, you will need some familiarity with the country’s hiring processes and requirements. This guide to hiring employees will explore essential employment requirements and offer some valuable tips for hiring in Thailand.
Incentives to hire Thai workers
Thailand’s laws require that every business hire at least four Thai nationals per international worker. Additionally, companies that want to employ international workers must obtain permission and licensing from Thailand’s Director-General of the Department of Employment. They must also provide a guarantee against any costs and damages associated with hiring an international employee.
Additional tips for how to hire in Thailand
Here are a few more steps to hiring in Thailand for your company to consider:
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Contract employment
Employment law in Thailand allows for either written or verbal contracts, as well as both fixed-term and permanent contracts. We recommend that you draft a detailed written contract for each of your employees. The contract should spell out employment details like these:
While there is no mandatory minimum or maximum probationary period, Thai labor law recommends probationary periods last no more than 119 days. During this time, if the relationship is not working out, the employer and employee can easily part ways. After that, termination requirements depend on whether the termination occurs with or without cause. If a company is terminating an employee without cause, it must provide written notice of at least one pay cycle. It must also pay severance as determined by the length of the employee’s time with the company:
In some cases, the employer may opt to pay additional compensation to shorten the notice period.
If a company terminates an employee for financial reasons rather than performance-related reasons and the employee has worked at the company for six years or more, the company must provide additional severance pay. This pay should equal 15 days’ salary for every year of employment, maxing out at 360 days’ salary.
Thailand has a national social security fund, and employers and employees must pay into it. This fund assists employees with medical care, child care, and lost wages due to unemployment, disability, or childbirth. It also provides retirement pensions and assistance with funeral costs.
Both employer and employee must contribute approximately 5 percent of the employee’s salary into this fund every month. The minimum contribution is 83 baht per month, and the maximum contribution is 750 baht per month. Your company will also need to pay Thailand’s corporate tax, which is generally about 20 percent of the employee’s salary.
What to know before hiring in Thailand
Before you get started, you’ll need to learn the nuances of contracts, wages, time off, terminations, and other critical hiring topics.
