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Andi Refandi
Andi serves as a Senior Account Executive on Emerhub’s global team.
Managing payroll in Thailand requires a thorough understanding of the country’s intricate labor laws, tax requirements, and mandatory social security contributions. For companies hiring in Thailand, navigating these complexities is crucial to ensure accurate and timely employee compensation, benefits administration, and compliance with local regulations.
Getting payroll right not only safeguards your business from legal risks but also supports your employees’ financial well-being and job satisfaction. To help you understand the country’s intricate payroll regulations, we have created an article as a guide on what are your obligations as an employer and payroll components you should be aware of.
Payroll Obligations for Employers
Mandatory Social Contributions for Employees
Both you and your employees are required to contribute to the Social Security Fund (SSF) and the newly introduced Employee Welfare Fund (EWF). This system covers benefits such as sickness, maternity, disability, death, child allowance, old-age pension, and unemployment among others for both Thai nationals and eligible foreign workers. Both contributions must be submitted to the Social Security Office (SSO) by the 15th of the following month.
Here is the breakdown of contributions:
| Contribution Type | Employee Contribution | Employer Contribution |
|---|---|---|
| Social Security Fund | 5% of salary (max 750/month) | 5% of salary (max 750/month) |
| Employee Welfare Fund* | N/A | 0.25% of wages (from Oct 1, 2025, increasing to 0.5% in 2030) |
| Workmen’s Compensation Fund | 0.25% | 0.25% |
*Effective from October 1, 2025 all employers with 10 or more employees must register for this fund and contribute. From October 1, 2030, the contribution rates for both employers and employees will increase to 0.5%.
Tax Withholding and Reporting
Managing Thailand payroll requires that you ensure strict compliance with income tax reporting regulations imposed by the Thai Revenue Department. Part of the payroll process in Thailand is to calculate, deduct, and remit income tax monthly. As the employer, you will need to withhold personal income tax (PIT) from your employees’ monthly salaries based on the progressive rate that applies to their annual net income 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% |
The withheld tax must be submitted no later than 7 days after the end of the month in which the wages were paid. Additionally, you are required to file a payroll tax return within the same timeframe, and to submit an annual withheld income tax statement by the end of February of the following year.
Payroll Components for Employees in Thailand
Minimum Wage in Thailand
As imposed by the Labor Protection Act, B.E. 2541 (1998), the minimum wage for employees in Thailand varies by province from THB 337 to THB 400 per day. Here are some examples of different minimum wage rates in different areas in Thailand:
| Location | Minimum Wage (THB) |
|---|---|
| Bangkok, Chachoengsao, Chonburi, Phuket, Rayong, and Ko Samui (Surat Thani) | THB 400 |
| Mueang Chiang Mai (Chiang Mai) and Hat Yai (Songkhla) | THB 380 |
| Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, and Samut Sakhon | THB 372 |
| Narathiwat, Pattani, and Yala provinces | THB 337 |
Working Hours and Overtime
The standard working hours allowed by law in Thailand are 8 hours per day and 48 hours per week. Work beyond these hours is considered overtime and is subject to overtime premium pay. Overtime is compensated at 1.5x the normal hourly wage for regular work days. Meanwhile, overtime conducted on rest days or holidays are 2x more than the hourly wage.
Payroll Cycle and Payment Practices in Thailand
Thailand follows a monthly payroll cycle for employees, usually on the last working day of the month. Employers are required to provide payslips detailing gross salary, deductions, net pay, and payment dates either in physical or electronic form.
Payment methods commonly used include cash, bank transfer, or cheque, with the payment schedule clearly stated in the employment contract. As the employer, you must keep accurate payroll records to maintain compliance with labor and tax laws.
How to Make Payroll Easier in Thailand?
If you want to establish a legal entity in Thailand and hire employees, you need to be prepared to address challenges in payroll management. Perhaps the biggest mistake any new company in Thailand makes is using fragmented or manual systems (spreadsheets, paper-based) which is at risk for human error, resulting in data inaccuracies. In turn, this can compromise records which are crucial for audits and statutory reporting.
For companies who want to hire expats, you are also subject to immigration regulations and provide the correct work permit for your foreign staff. Furthermore, you also need to consider their tax residency status, possible income from abroad, and relevant tax treaties Thailand has with other countries to avoid double taxation.
Helping you manage your payroll, Emerhub provides integrated, cloud-based payroll platforms that automate tax, social security, and overtime calculations, minimizing human error and saving time. By consolidating payroll data in a unified system, we can help reduce fragmented data issues and enhance operational efficiency. We provide support for hiring foreign workers with our visa processing services.
Talk to our local experts in Thailand about how you can efficiently manage payroll for your business. Fill out the form below!
FAQs About Payroll in Thailand
Yes, you are legally required to provide your employees with payslips for each pay period. The payslip must be a detailed document showing the breakdown of salary, including base pay, bonuses, overtime, and all deductions such as withholding tax, social security contributions, and provident fund payments. It must also state the net amount actually paid to the employee. Payslips can be issued either in physical paper form or electronically (as an epayslip in PDF or other formats).
A 13th-month salary is not mandatory by law unlike other neighboring countries in Southeast Asia such as Indonesia and the Philippines. Payment of any bonus is at the discretion of the employer and is usually outlined in the employment contract or company policy if offered.
Employers are required to retain payroll records for at least 2 years after the termination of employment for each employee. This includes detailed records of wages, overtime pay, holiday pay, and other payroll-related documents. Tax-related payroll records such as income tax withholding and social security contributions are generally required to be kept for a longer period, typically 5 to 7 years, as stipulated by the Revenue Department.
In general, foreign employees face the same core payroll requirements as locals but require additional compliance around work permits, insurance, and international tax considerations.
Here’s what you need to know:
- Foreign employees are subject to the same payroll tax obligations as Thai nationals. Foreign workers must file annual personal income tax returns if they meet tax residency requirements (spending 180 days or more in Thailand).
- Employers must register with the Thai Social Security Office and make social security contributions for foreign employees.
- Foreign employees must have legal work permits and visas, which involve minimum salary thresholds and other regulatory compliance. As the employer, you are responsible for ensuring these permits are valid to avoid penalties.
