Thailand Payroll Solutions
Our expert payroll solutions ensure compliance with Thailand’s Labor Protection Act.Â
Payroll Regulations in Thailand
Under the Labour Protection Act B.E. 2541 (1998), you must comply with wage standards, working hours, leave, and termination. As the employer, you are also obligated to contribute to employee social security as well as withhold and remit income tax for your employees in Thailand.
Social Security Contributions
Social contributions cover pension, sickness, unemployment support, disability, and death for your employees whether local or foreign. These contributions must be accurately calculated and submitted to the Social Security Office (SSO) by the 15th of the following month.
| Contribution Type | Employee Contribution | Employer Contribution |
|---|---|---|
| Social Security Fund | 5% of salary (max THB 750/month) | 5% of salary (max THB 750/month) |
| Employee Welfare Fund* | N/A | 0.25% of wages (increasing to 0.5% in 2030) |
| Workmen’s Compensation Fund | 0.25% | 0.25% |
*Effective from October 1, 2025: all employers with >10 employees must register for EWF and provide contributions.
Tax Withholding and Reporting
Part of your obligations as an employer is to ensure income tax withholding and reporting for your staff in Thailand. Every month, you must deduct the correct income tax from your employee’s salary according to their tax bracket:
| Taxable Income (THB) | Tax Rate |
|---|---|
| 0 – 150,000 | 0% (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% |
| Over 5,000,000 | 35% |
Reporting must be made no later than 7 days after the end of every month in which your staff wages are paid. On top of that, you are also required to file P.N.D. 1 Kor and P.N.D. 91 forms every February annually for your employee’s yearly tax filing.
Minimum Wage in Thailand
Minimum wage in Thailand is protected under Thailand’s Labor Protection Act. Rates vary depending on the region’s economic level. For example, the minimum wage in Bangkok is higher (THB 400 per day) than in Narathiwat (THB 337 per day) in the South.
Overtime Premium
Thailand follows the standard 8-hour day and 48 hours per week. Overtime is considered any work above the standard work hours and is subject to an overtime premium rate per hour. The standard overtime rate for regular work days is 1.5x the normal hourly wage and 2x for rest days or holidays.
Have questions about payroll components and obligations?
Why You Should Outsource Payroll in Thailand
Outsourcing payroll in Thailand is ideal for startups and SMEs who need additional resources to manage their growing staff. We can also help you manage payroll for your remote employees to simplify compliance – even if you don’t have a legal entity in Thailand!
Provides Scalability and Flexibility
Outsourcing allows payroll services to scale easily as the business grows or changes, without the headache of adjusting in-house resources.
Ensures Accuracy and Compliance
Outsourcing allows payroll services to scale easily as the business grows or changes, without the headache of adjusting in-house resources.
Reduce Cost
Helps optimize resources related to hiring, training, software, and maintaining an in-house payroll team.
Saves Time
Outsourcing payroll frees up internal resources from the HR team, allowing them to focus on other human resource aspects such as recruitment or employee engagement.
Offers Employee Self-Service Options
Many outsourced payroll providers offer portals for employees to view payslips and manage information, reducing HR workload.
Stay compliant with Thailand’s Labour Protection Act
Streamline Your Payroll Processes with Emerhub
Our Comprehensive Payroll Solutions
Our service suite covers every aspect of payroll management in Thailand. Emerhub provides you with a complete and seamless solution whether you’re a startup, an SME, or simply in need of help in managing payroll for remote employees in the country.
Salary and Leave Calculations
Precise calculation of salaries, including allowances, bonuses, overtime, and all relevant deductions.
Social Security Fund (SSF) Processing
End-to-end management of monthly SSF contributions, including submission of all required documentation.
Personal Income Tax (PIT) Filing
Expert preparation and timely submission of all necessary tax forms to the Thai Revenue Department.
Payslip Generation
Secure, confidential, and professional payslips delivered to each of your employees every payment cycle.
Comprehensive Reporting
Receive detailed monthly and annual reports that provide a clear and concise overview of all payroll activities.
FAQs About Payroll Services in Thailand
Yes, employers must issue payslips for every pay period, detailing salary components, deductions (tax, social security), and net pay. Payslips can be delivered electronically or in printed form, helping ensure transparency and employee recordkeeping.
No, unlike some neighboring countries, the 13th-month salary is not mandatory by law in Thailand. Any bonuses are at the employer’s discretion and typically outlined in employment contracts.
Payroll and employment records should be maintained for at least 2 years after an employee leaves, with tax-related documents retained up to 5-7 years as per Thai Revenue Department rules to support audits and compliance reviews.
Foreign employees have similar payroll obligations as locals but need additional compliance for work permits, visas, and international tax rules. Employers must ensure valid permits and social security registrations.
Outsourcing firms calculate monthly payroll, deduct taxes and social security, issue payslips, file statutory documents, handle year-end tax reconciliation, track leaves and benefits, and integrate with HR systems, ensuring compliance and saving administrative burden.
Schedule a call with an Emerhub consultant in Thailand
Tell us about your plans. We’ll reach out to discuss your needs and how we can help you setup payroll for your business in Thailand.
Email Us
info@emerhub.com
Call Us
+66 92 554 5444
Visit Us
20th Floor, United Business Center II Building, 591 Sukhumvit 33 Alley, Khlong Tan Nuea, Watthana, Bangkok 10110