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
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
Talent pool strengths
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.