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The cost of hiring a full-time employee in Thailand.

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the cost of hiring a full-time employee in thailand

There is much more than just salary to factor in when considering full-time employee costs. Companies will need to plan for compliance, legal requirements, social security contributions and more to ensure that they comply with Thailand’s labour law and that employees receive any compensation they are entitled to.

This guide will explain the costs involved in hiring and maintaining full-time employees in Thailand.

Key takeaways

  • Employers must contribute 5% of the employee’s salary to the Social Security Fund each month
  • The minimum wage in Thailand is based on the province and ranges from 354 THB to 328 THB
  • Employees who work overtime must be paid 1.5 times, two times or three times the base pay depending on whether they work outside of their regular work hours or are required to work on a holiday
  • Employees are entitled to paid annual leave, sick leave, maternity leave and military service leave
  • Employees who are terminated must be paid severance based on the years they have been working for the company. The rate of severance pay ranges from 30 days to 400 days.

Salary costs

Minimum wage

Several factors are considered to determine the minimum wage, including the cost of living, inflation rate, labour productivity growth rate and other macro and microeconomic aspects. The new minimum wage for employees in Thailand ranges from 1 October 2022 are 354 THB to 328 THB, depending on the province.

The daily minimum wage in Thailand is as follows:

DistrictMinimum wage rate
1Phuket Province370
6Bangkok, Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon363
2Chonburi, Rayong361
1Nakhon Ratchasima352
1Samut Songkhram351
6Khon Kaen, Chachoengsao, Chiang Mai, Prachinburi, Phra Nakhon Si Ayutthaya , Saraburi350
3Nakhon Nayok, Suphanburi , Nong Khai348
2Krabi, Trat347
15Kanchanaburi, Chanthaburi, Chiang Rai, Tak, Nakhon Phanom, Buriram, Prachuap Khiri Khan, Phang
Nga, Phitsanulok, Mukdahan, Sakon Nakhon, Songkhla, Sa Kaeo, Surat Thani , Ubon Ratchathani
3Chumphon, Phetchaburi, Surin344
3Nakhon Sawan, Yasothon ,Lamphun343
5Kalasin, Nakhon Si Thammarat, Bueng Kan, Phetchabun, Roi Et342
5Chainat, Chaiyaphum, Phatthalung, Singburi ,Ang Thong341
16Kamphaeng Phet, Phichit, Maha Sarakham, Mae Hong Son, Ranong, Ratchaburi, Lampang, Loei, Sisaket, Satun, Sukhothai, Nong Bua Lamphu, Amnat Charoen, Udon Thani, Uttaradit, Uthai Thani340
4Trang, Nan, Phayao, Phrae338
3Narathiwat, Pattani, Yala330

Minimum wage for foreign employees

The prescribed minimum income for foreign employees varies based on the employee’s nationality.

Minimum wage/month (THB)Nationality
50,000Europe (including the United Kingdom), Australia, Canada, Japan and the United States of America
45,000Hong Kong, Malaysia, South Korea, Singapore and Taiwan
35,000China, India, Indonesia, the Middle East and the Philippines
25,000Africa, Cambodia, Laos, Myanmar and Vietnam

Overtime payment

Employees who work more than their regular work hours must be paid 150% of the employee’s hourly compensation. Up to eight hours of work during a holiday or day off are paid at a base rate of 200%, and any additional hours worked during a holiday or day off are paid at a rate of 300% of the base hourly rate.

Paid leave entitlement

Employees in Thailand are entitled to paid leaves after completing one year of service. The following are examples of leaves that are provided to employees:

Annual leave

An employee who has worked continuously for one full year shall be entitled to an annual vacation of not less than six working days and get his basic pay at a rate equal to normal working days. For those who have worked for less than one year, the employer may grant the employee an annual vacation on a pro-rata basis.

Sick leave

Employees in Thailand are entitled to 30 days of paid sick leave each year. When an employee uses three or more days of sick leave, the employer can ask for a medical certificate.

Maternity leave

In 2019, the length of maternity leave was expanded to 98 paid days instead of 90 days. The 98 days include day-offs for prenatal doctor visits. The days of maternity leave shall include holidays that occur during the leave.

The employer pays the employee the full amount of her salary during the first 45 days of leave. The second half of the leave is paid 50% by social security.

Military service leave

Male employees are entitled to leave for military service for inspection, military drilling or for readiness testing and get their basic pay at a rate equal to normal working days during the leave but not exceeding 60 days.

Social security contributions

Both the employer and employee are required to contribute to the Social Security Fund (SSF), and the current contribution rate is 5% of the employee’s salary. The minimum salary to be calculated is 1,650 THB, and the maximum is 15,000 THB; therefore, the minimum contribution is 83 THB, and the maximum is 750 THB. Even though an employee’s salary exceeds 15,000 THB, the maximum contribution will be 750 THB.

A total of 10% of the salary is paid to the SSF by the employer. Each new employee must be registered into the social fund within 30 days after they start working for the company. If an employee leaves the company, he/she should be deregistered from the social fund within 15 days of the employment termination.

Social security in Thailand covers the following benefits:

  • Child benefits
  • Death benefits
  • Disability benefits
  • Injury or sickness benefits
  • Maternity benefits
  • Old-age benefits
  • Unemployment benefits

Termination compensation

The new Labour Protection Act (No.7) B.E. 2562 (2019) became effective on 5 May 2019. The Labour Protection Act increased the number of days of the wage for terminating an employee with an employment period of 20 years or more.

The rates of severance pay are as follows:

Employment periodRate of severance pay
120 days but less than one year30 days
One year but less than three years90 days
Three years but less than six years180 days
Six years but less than 10 years240 days
10 years but less than 20 years300 days
20 years or more400 days

How Acclime can help with your HR needs

Understanding the exact employee costs is crucial for business owners in order to accurately estimate and allocate budgets for their operations. It’s important to keep in mind that employee costs go beyond just salary and include additional expenses such as healthcare contributions, social security contributions, paid leave entitlement, and severance pay. By taking all of these factors into account, business owners can make informed decisions and effectively manage their finances.

Acclime provides professional HR services, including PEO, payroll & HR administration. Work with an in-country expert to seamlessly pay and maintain your staff without having to handle any time-consuming administration tasks. Contact us if you need any assistance with employment and HR needs. We are ready to help.

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About Acclime.

Acclime is Asia’s premier tech-enabled professional services firm. We provide formation, accounting, tax, HR and advisory services, focusing on delivering high-quality outsourcing and consulting services to our local and international clients in Thailand and beyond.

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