Overview

Capital
Bangkok
Currency
Thai Bhat (THB)
Date Format
dd/mm/yyyy

COVID-19

The monthly Social Security contributions for employees has been reduced to 0.5% in February and March. The reduced rate of 3.0% for employers will remain for the months of February and March.

Taxes

Employer

Employer Payroll Tax

3.00%
Pension
1.50%
Health Insurance
0.50%
Unemployment
0.2%-1.0%
Work Injury
5.2%-6.00% Total Employment Cost
Employee

Employee Payroll Taxes

3.00%
Pension
1.50%
Health Insurance
0.50%
Unemployment
5.0% Total Employee Cost
Employee

Employee Income Tax

0.00%
0 to 150,000
5.00%
150,001 to 300,000
10.00%
300,001 to 500,000
15.00%
500,000 - 750,000
20.00%
750,000 - 1,000,000
25.00%
1,000,000 - 2,000,000
30.00%
2,000,000 - 5,000,000
35.00%
Over 5,000,000
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
China
Slovakia
Thailand
South Africa
Georgia
Macedonia
82.39%
41.12%
37.2%
6%
2%
2%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Macedonia
Netherlands
Thailand
Georgia
Belarus
Ukraine
45%
28%
27.65%
5%
2%
1%
0%

Minimum Wage

General

The daily minimum wage in Thailand varies dependent on the region, from 313THB to 336THB. 

Minimum wage (per month)
$4000
$2663
$2491
$198
$47
$36.80
$2.33
Geneva
Luxembourg
Australia
Thailand
Malawi
Angola
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

The pay date is determined between the employer and the employee. Overtime pay, holiday pay, and holiday overtime pay are given to employees once a month, also on an agreed date. The employer also must pay the employee’s salary in his or her workplace, unless agreed otherwise. If employers want to deposit salary into the employee’s bank account, they must obtain the permission of the employee to do so. No employee can be forced to receive money deposited into his or her bank account instead of cash. 

13th Salary

Not required by law.

Working Hours

General

The maximum number of work hours is 8 per day, with a total of 48 hours weekly. Employees performing hazardous tasks work 7 hours per day and 42 hours weekly.  

A 1-hour rest period during a working day is given to employees. They can break their rest period into parts, the minimum time being 20 minutes and the longest time being an hour. If the employee is engaged in such work where stoppages may damage its production or quality, the employer may request the former to work without breaks. The employee’s consent is required in this case.  

Overtime

An employee must consent to overtime and cannot exceed 36 weekly. Employees working overtime are entitled to overtime pay. Overtime pay is 150% their normal rate or 200% the rate for work on holidays.

Leave

Paid Time Off

An employee who has worked continuously for one full year is entitled to an annual holiday of 6 days per year. If the employee works for less than one year, his or her annual leave is prorated. Sometimes, employers voluntarily give more than 6 days of annual leave to employees. If employees do not use their annual leave holiday within a year, it is carried over to the next year and added to the next year’s annual leave. Yet some employers refuse to carry unused annual leave to the next year, annulling it when the year to which it belongs ends.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Albania
Thailand
Michigan
China
Federal
30
13
43
30
12
42
28
14
42
6
16
22
2
11
13
5
7
12
10
10
Public Holidays

16 public holidays.

Sick Days

Employees are eligible to take up to 30 days of paid sick leave per year. If the employee is absent for more than 3 consecutive days, the employer can ask for a doctor’s note verifying the illness.  

Maternity Leave

Employed expectant mothers are granted a minimum of 98 days of maternity leave. 45 days out of these 98 days are paid. Whether the remaining days are paid for or not dependon the employer’s agreement with the pregnant employee.

PAID MATERNITY LEAVE (DAYS)
410
365
365
98
45
30
0
Bulgaria
Serbia
Albania
Thailand
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

The rights enjoyed by fathers of newborn babies vary depending on the sector in which they work. Fathers working in the private sector receive no paternity leave. The public sector, by contrast, gives fathers 15 days of paternity leave to take care of their newborn babies.  

Parental Leave

No statutory regulation.

Other Leave

Work-related injury leave: If the employee needs to receive medical treatment due to work-related injury or occupational disease, his or her work-related injury leave should not exceed more than 12 months. In case of serious injury or special circumstances, the work-related injury leave may be appropriately extended upon the confirmation by the municipal labor ability certifying committee.

Yet again the extension shall not exceed 12 months. Injured employees are paid 100% of their daily wages while they receive the required medical treatment. Employers bear the full brunt of payments for employees’ injury compensation.

Termination

Termination Process

When employers want to discharge the employee, they are required to give them one month’s notice in advance of termination. Yet in those cases when employees are discharged for a reason connected with their behavior or performance, employers are not expected to warn them in advance. Among these reasons are the following:  

  • Dishonesty at the workplace or criminal offense against the employer. 
  • Harming the employer intentionally;  
  • Violating work rules or orders, provided a written warning has already been issued. 
  • Neglecting duties and, in so doing, causing harm to the employer. 
  • Being imprisoned.  

When employees are discharged for misbehavior, they are not paid severance money either.  

If employers suspend their business temporarily for a cause other than a force majeure, they pay to the employee 50 percent of the daily wage he or she received before the suspension of the business. The payment is given to the employee for the whole period his or her services are not required.

Notice Period

he employee or employer can terminate by giving notice at or before any time of payment to take effect at the following time of payment. 30 days advanced notice is common, and some ask for a longer 2 or 3-month notice period. As a rule, the duration of the notice period is stipulated in the employment contract.

Severance Pay

If employees are not dismissed for the reasons mentioned in the section above, they are paid severance according to the following scheme:  

Period of Employment   Amount of Severance Pay  
More than 120 days but less than 1 year   30 days salary  
At least 1 year but less than 3 years   90 days salary  
At least 3 years but less than 6 years   180 days salary  
At least 6 years but less than 10 years   240 days salary  
10 years  but less than 20 years  300 days salary  
20 years or more  400 days salary 

 Employees working for less than 120 days for the same employer are not eligible to receive the severance payment. Other employees who do not qualify for severance payment are those who are hired for a fixed duration. As specified in the Labour Protection Act, these employees must have a written contract of no more than 2 years duration. To receive such a contract, employees usually do a special project, not in the normal course of the employer’s business. Or it must be temporary or seasonal employment.  

When the employer announces termination and requires employees to work until the end of the following month, employees can find other employment and resign before the specified date. If this is the case, employers do not pay severance pay to the resigned employee.

Probation Period

Not required, however, Thai law does specify severance pay for employees who have worked for 120 days or more and are terminated without cause. As a result, to avoid paying severance, many employers in Thailand set probation periods of up to 119 days.

VAT

General

7% standard rate.

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