Asia-Pacific · THB

Hire in Thailand

Kingdom of Thailand — 72 million population, $7,650 GDP per capita. Everything you need to know about employment law, tax, compliance and hiring in Thailand.

Capital

Bangkok

Currency

Thai Baht (THB)

Languages

Thai

Time zones

UTC+7 (ICT)

Hiring overview

Typical time to hire
1-3 weeks for contractor, 3-5 weeks for full-time
Entity requirement
Thai limited company. Registration at DBD (Department of Business Development). Foreign business may need Foreign Business License.
EOR available
Yes — from $399/employee/month through a Corpshore entity
Contractor of record
Yes — from $39/worker/month

Employment law

Standard workweek
48 hours (8 hours/day, 6 days)
Maximum weekly hours
48 hours
Minimum annual leave
6 working days after 1 year (many employers offer 10-15)
Public holidays
16 per year
Maternity leave
98 days (45 paid by employer, 45 by social security)
Paternity leave
No statutory provision (some government agencies offer 15 days)
Notice period
1 pay period (employer and employee)
Severance
30-400 days depending on tenure (30 days for 120 days-1 year; 400 days for 20+ years).
Probation
119 days maximum (to stay under 120-day severance threshold). No statutory probation concept.
Overtime rules
1.5x (regular overtime), 3x (holiday overtime). Maximum 36 overtime hours per week.

Tax overview

Income tax range
0% to 35%
Corporate tax
20%
Social contributions
Social security: 5% each (employee/employer), capped at THB 750/month each. Workmen's comp: 0.2-1% employer.
VAT / GST
7% (reduced from standard 10%)
Tax year
Calendar year
Treaty network
Over 60 tax treaties

Compliance landscape

Worker classification
Labour Protection Act B.E. 2541 (1998) governs. Employment relationship based on supervision and direction.
Data protection
Personal Data Protection Act (PDPA, fully effective June 2022). PDPC enforces.
Right to work
Work permit and non-immigrant B visa required. Some occupations reserved for Thai nationals. Maximum ratio: 4 Thai employees per 1 foreign worker.
Non-compete
Generally enforceable if reasonable under Thai Civil and Commercial Code. Courts may reduce excessive duration.
Collective bargaining
Protected under the Labour Relations Act. Labour unions active in manufacturing and state enterprises.

Payment rails

Bank transfer (PromptPay)
Wise

PromptPay (national e-payment) enables instant transfers by ID number or phone. Thailand has high digital payment adoption. Wise supports THB.

Key considerations for hiring

  • Severance pay is generous and mandatory — up to 400 days wages for long-tenured employees
  • 119-day probation practice avoids triggering the 120-day severance threshold
  • BOI (Board of Investment) incentives available for promoted activities (tax holidays, foreign ownership waivers)
  • Bangkok is Southeast Asia's most-visited city and a major digital nomad destination

Business and cultural context: Thailand

Business culture

Hierarchical, polite, and non-confrontational. Saving face (kreng jai) is extremely important. Wai (palm-together greeting) is the standard. Seniority is deeply respected. Thai business culture avoids direct conflict.

Key industries

Automotive (Detroit of Asia — largest manufacturer in ASEAN)
Tourism
Electronics
Agriculture (rice, rubber, cassava)
Medical tourism

Talent pool strengths

Automotive engineering
Hospitality and tourism
Software development
Manufacturing
Medical services

Historical context

Thailand is ASEAN's largest automotive manufacturer, producing over 1.8 million vehicles annually (the 'Detroit of Asia'). Toyota, Honda, and Ford have major production facilities. The Eastern Economic Corridor (EEC) initiative aims to transform the eastern seaboard into a hub for advanced manufacturing, robotics, and aviation.

Ready to hire in Thailand?

Use our EOR service from $399/month and we handle employment law, payroll, tax and compliance in Thailand for you.

Hire in Thailand — employment law, tax, compliance | Corpshore Work