Your guide to payroll in Thailand

Organizations have legal requirements around payroll and employee remuneration. 

If you’re hiring employees in Thailand, you need to know the local laws around payroll in Thailand, taxes, employee benefits, and more.

Thailand payroll: Wages and other payments

Payroll management in Thailand requires a deep understanding of the payroll cycle, minimum wage, sick pay, maternity leave, and severance packages. Let’s take a closer look at each element of payroll.

1) Payroll cycle

Employees are usually paid monthly in Thailand, and payday is often the last working day of the month.

2) Minimum wage

Thai law mandates a daily minimum wage of 337 to 400 baht ($10.25 to $12.17), depending on the company’s location. 

The minimum wage is higher in areas with lots of economic activity (and expensive living costs) and lower in rural areas.

Thailand’s minimum wage is:

• 400 baht per day in Chachoengsao, Chonburi, Phuket, Rayong, Koh Samui 
• 380 baht per day in Muang District (Chiang Mai) and Hat Yai District (Songkhla) 
• 372 baht per day in Bangkok, Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, and Samut Sakhon
• 337 baht per day in Narathiwat, Pattani, and Yala

If an employee is asked to work more than the standard 48-hour work week or 8-hour working day, their organization must pay them overtime. 

On a regular working day, overtime pay is 1.5 times the employee’s normal wage. This jumps to 3 times their wage for public holidays or days of rest.

3) Sick pay

Employees in Thailand are entitled to up to 30 days of paid sick leave per year. A doctor’s note may be required after 3 consecutive days of illness.

4) Maternity pay

Thai employers are obligated to provide 98 days of maternity leave for each pregnancy. This leave can be taken before and after the birth. 

Employees receive pay for 90 of those days, with the first 45 days paid by the employer and the next 45 covered by Thailand’s social security fund.

Thai employees are entitled to other types of paid and unpaid leave. The leave policy in Thailand is something that all local employers need to be aware of.

5) Severance packages

In Thailand, employees are owed severance pay based on their length of tenure:

• 120 to 365 days of service: 30 days of pay
• 1 to 3 years of service: 90 days of pay
• 3 to 6 years of service: 180 days of pay
• 6 to 10 years of service: 240 days of pay
• 10 to 20 years of service: 300 days of pay
• 20+ years of service: 400 days of pay

Payroll in Thailand: Contributions and deductions

When paying employees, employers are required to withhold salary tax in Thailand. 

Other contributions to the Thai social security, Workers’ Compensation Fund, and Employer Welfare Fund are also deducted. 

1) Salary tax in Thailand

Thai workers pay taxes on their earnings, ranging from 0 to 35%.

The bands of salary tax in Thailand are:

• 0.00% on earnings between 0-150,000 baht
• 5.00% on earnings between 150,001-300,000 baht
• 10.00% on earnings between 300,001-500,000 baht
• 15.00% on earnings between 500,001-750,000 baht
• 20.00% on earnings between 750,001-1,000,000 baht
• 25.00% on earnings between 1,000,001-2,000,000 baht
• 30.00% on earnings between 2,000,001- 4,000,000 baht
• 35.00% on earnings of 4,000,000 baht and above

2) Social security

We mentioned above that some maternity pay is funded by Thailand’s state social security fund. Contributions to this fund also cover pensions, health insurance, and unemployment benefits.

Both the employer and the employee must contribute 5% of the employee’s monthly salary to Thai social security, totaling 10%. The Thai government then adds a further 2.75%.

3) Workers’ Compensation Fund

Thai employers make annual contributions to the Workers’ Compensation Fund (WCF). This fund helps support employees and their families in the case of work-related illness, injury, or death.

Employers contribute 0.2% to 1% of their employees’ annual wages to WCF, depending on how risky the work is (the higher the risk level, the higher the contribution).

4) Employee Welfare Fund

Thailand’s new Employee Welfare Fund (EWF) applies to businesses with 10 or more employees and kicks in as of 1 October 2025. 

Between 1 October 2025 and 30 September 2030, the contribution rate is 0.25% of the value of the employee’s wage, and is payable by both the employer and the employee (totaling 0.5%). After 1 October 2031, the rate will increase to 0.5% for both parties.

A company may be exempt from EWF if it can prove similar contributions to a separate employee welfare program. This program must meet the standards of Thailand’s Labor Protection Act.

Mandatory Thai employee benefits

Thailand’s social security pays out the following employee benefits:

• Pension: Thai workers can retire at age 55. They must have contributed to social security for at least 15 years to be eligible for a state pension.
• Child allowance: Working parents with at least 1 year of social security contributions can access an allowance of 600 baht per month per child (aged 15 and under), for up to 3 children.
• Medical benefits: If an employee gets sick (and it’s not work-related), the government will support them with half their core wage to help pay for medical exams, rehabilitation, and other hospital expenses.
• Disability benefits: Disability cover provides up to half an employee’s wage for medical exams, medication, supplies, and other medical expenses related to their disability.
• Death benefits: The family of a deceased Thai worker can access funds for funeral expenses and other associated costs.

Some employers will offer additional benefits to help attract and retain top talent. 

In Thailand, this can include health insurance, paid time off beyond what’s mandated by law, flexible working, and additional training and development.

How to pay employees in Thailand

When it comes to running a payroll in Thailand, companies have few options, like:

1. Setting up a local entity: This can be costly and time-consuming as it requires a lot of administrative overhead. Additionally, you’ll take on responsibility for Thai work permits and visas, as well as payroll management, taxes, and benefits as per Thailand’s laws.
2. Using international payment platforms or doing a wire transfer.
3. Partnering with an EOR in Thailand: An Employer of Record (EOR) like Payoneer Workforce Management is one of the easiest and efficient ways to hire and pay employees in Thailand. They act as a legal employer and offer support for staying compliant as per local labor law and payroll management in Thailand.

FAQs about payroll in Thailand 

1) What is the payroll system in Thailand?

In Thailand, payroll typically runs month to month. Employees receive base pay for up to 48 hours a week (working up to 8 hours a day). Overtime pay must be provided for longer days or weeks.

2) What is the payroll tax in Thailand?

Payroll tax in Thailand helps fund the state social security program, which covers employees when they retire, get sick, or otherwise need financial support. The average payroll tax in Thailand is 5.2 to 6%, and the tax year runs from January 1st to December 31st.

3) What is the Thai basic wage?

Thailand’s minimum wage is 337 to 400 baht per day ($10.25 to $12.17), depending on the company’s location.