Hiring in Thailand
Hiring in Thailand in 2026 is cheaper on paper than almost any other market in Asia, and more expensive than foreign employers expect once severance comes into view.
Hiring in Thailand in 2026 is cheaper on paper than almost any other market in Asia, and more expensive than foreign employers expect once severance comes into view.
Every Thai employment contract is written to 119 days, exactly the day before the Labour Protection Act §118 severance switch flips at 120 days. From day 120 onward, any employee dismissed without cause is owed 30 days of wages immediately, and that figure climbs to 400 days for long-tenure staff. The severance ladder under §118 of the Labour Protection Act 1998 walks to 90 days at one year, 180 days at three, 240 days at six, 300 days at ten, and 400 days at twenty-plus years of service. There is no accrual scheme to soften the cash hit. The full amount is owed at separation. That cliff sits inside what is otherwise the lightest mandatory employer burden across our APAC coverage. Social Security at 5% employer plus 5% employee on a capped wage base, with Workmen's Compensation between 0.2 and 1.0%, lands the all-in floor close to 5 to 6% of gross salary. This guide covers what one Thai hire actually costs in 2026, how the 1 January rule changes affect a headcount plan, and how to choose between an Employer of Record, payroll through your own Borisat Chamkat (Co., Ltd.), or a contractor arrangement that survives the substance test set by Supreme Court 3114/2567.Thailand at a glance
Hiring an employee on a THB 60,000 monthly salary in Bangkok adds roughly 1.5% in mandatory employer costs, mostly through the capped Social Security contribution and the Workmen's Compensation floor. Our Thailand payroll and employment facts set out the province-set minimum wage, Social Security and the statutory severance scale, each with its official source and date.
Once provident fund contributions, a conventional 13th-month bonus, and a reserve for §118 severance are factored in, the true cost of employing someone in Thailand climbs much higher than the headline rate suggests.
For small teams, an EOR is usually more cost-effective than setting up a Thai Borisat Chamkat. Local entity setup tends to make financial sense at around 8 to 12 Thai-national hires, or closer to 15 to 20 if the team is led by expatriate staff who need work permits.
Thailand's labour enforcement environment is active. Between October 2024 and April 2025, the Department of Employment inspected 38,734 businesses and prosecuted 1,329 employers for permit and right-to-work violations.
From 1 January 2026, the Social Security wage ceiling rises from THB 15,000 to THB 17,500 per month, lifting the capped contribution from THB 750 to THB 875 per side.
Thailand-registered EOR providers worth shortlisting
Deel
Operates via DEEL PAYROLL (THAILAND) CO., LTD. (DBD 0105565074796, Bangkok). Broad work-permit sponsorship throughput.
Remote
Operates through its own locally registered Thai entity. Cleanest dual-track severance accrual reporting in our 2026 audit.
Multiplier
Operates via MULTIPLIER TECHNOLOGIES (THAILAND) CO., LTD. (DBD 0105564057286, Bangkok). Competitive entry pricing.
Why do international companies hire in Thailand?
Thailand is not the cheapest ASEAN market on every line, and our editorial team has never argued otherwise. It ends up on the shortlist for five specific reasons that keep coming up in what we hear from companies hiring in Thailand.- Senior engineering costs well below Singapore and Hong Kong. A Bangkok software engineer with five to eight years of experience asks for THB 60,000 to 80,000 per month, against USD 5,200 to 6,700 for the same band in Singapore. A London asset manager building a six-person Chiang Mai development team funds two extra hires before the headline budget moves.
- The lightest statutory burden in our APAC coverage. Social Security at 5% plus Workmen's Compensation at 0.2 to 1.0% on a capped wage base, against Japan at 15 to 16% and Singapore CPF at 17%. The gap shows up immediately on a ten-person budget.
- Three regional talent hubs. Bangkok handles engineering, finance, and enterprise sales. Chiang Mai concentrates digital marketing, content, and customer support at a 15 to 20% discount. The Eastern Economic Corridor (Chonburi and Rayong) is the home of automotive and advanced manufacturing.
- A useful ASEAN time zone. A Bangkok working day overlaps with the Bengaluru morning, the Singapore open, the Sydney afternoon, and the London pre-open, all in a single shift. US fintechs increasingly route APAC overnight coverage through Bangkok rather than the Philippines.
- BOI-promoted status. A Board of Investment certificate relaxes the 4:1 Thai-to-foreign headcount ratio, waives or reduces the THB 2 million capital requirement per foreign hire, and grants up to eight years of corporate income tax exemption on promoted activities. It changes the entity-versus-EOR calculation for technology, advanced manufacturing, and regional headquarters projects.
What are the employer costs of hiring in Thailand?
The main employer costs in Thailand are Social Security at 5% employer plus 5% employee capped at THB 750 per month (rising to THB 875 in January 2026), severance under §118 of the Labour Protection Act ranging from 30 to 400 days based on tenure, plus a 13th-month bonus that is conventional in many sectors. On a THB 720,000 annual salary, core employer costs add roughly THB 10,980 per year before optional benefits or EOR fees. Once the §118 severance ladder is factored in, the true cost varies materially with the tenure of the role and any provident fund or bonus arrangement. The table below shows the typical cost structure for a THB 720,000 hire in Thailand.| Cost line | Rate | Annual on THB 720,000 gross | Important considerations |
|---|---|---|---|
| Social Security (employer) | 5% capped at THB 875/month from 1 Jan 2026 | THB 10,500 | Wage base rises to THB 17,500 per month in 2026; flat above the cap. |
| Social Security (employee) | 5% capped at THB 875/month | Withheld from gross | Same cap as the employer side; covers sickness, maternity, pension, and unemployment. |
| Workmen's Compensation | 0.2-1.0% by risk band | THB 480 (office role) | Annual earnings cap of THB 240,000; higher rates for hardware and supply-chain roles. |
| Provident fund (optional) | 2-15% (3-5% typical) | THB 21,600-36,000 | Not statutory but near-universal for senior hires; matched by the employee. |
| Severance under §118 LPA | 30-400 days by tenure | THB 180,000 at year 3 (90 days) | Owed in full on termination without cause; no accrual scheme. |
| 13th-month bonus (conventional) | ~8.3% | THB 60,000 | Not statutory but expected in finance, technology, and most multinationals. |
| Personal Income Tax (withheld from salary) | 0-35% progressive | Withheld via P.N.D.1 | Monthly e-Filing due by the 15th; a 1.5% per month surcharge applies on late returns. |
| Core employer cost (Social Security + Workmen's Comp) | ~1.5% | THB 10,980 | Provident fund and the 13th-month bonus usually add another 12-15% on top. |
What changed in Thailand for 2026?
Six changes that affect any 2026 hiring plan for Thailand, in order of how much they move the budget or the compliance picture.| Change | Effective date | What it does | Action for HR/Finance |
|---|---|---|---|
| Social Security wage ceiling rise | 1 Jan 2026 | Wage base THB 15,000 to 17,500; cap THB 750 to 875 per side | Update payroll before the second pay cycle; plan for further rises in 2028 and 2030 |
| BOI promotion relaxation | Phased through 2026 | Eases the 4:1 ratio and capital floor on promoted activities (technology, advanced manufacturing, regional HQ) | Test eligibility before signing an EOR contract for an expatriate-led market entry |
| Personal Income Tax review | 2026 | Revenue Department review of tax brackets and reliefs (no rate cut confirmed at publication) | Track P.N.D.1 schedule changes; refresh the offer-letter take-home calculator quarterly |
| DBD Biz Regist platform mandatory | 1 Jan 2026 | Sole channel for Co., Ltd. registration; processing drops from one to three weeks down to one to two days | Filings missing a digital signature, director ID, or share-capital declaration will be rejected |
| Employee Welfare Fund re-introduction | 1 Oct 2026 | 0.25% each side on wages, for employers with 10 or more staff; rises to 0.5% later | Sits on top of the Social Security cap; often missed in any budget that ignores October |
| 2026 daily minimum wage tiering | 2026 | THB 337 to 400 per day across 77 provinces (Bangkok and Phuket at THB 400; far south at THB 337) | Provincial choice carries an 11 to 16% annual difference for entry-level roles |
What employment laws should you know before hiring in Thailand?
The Labour Protection Act 1998 (LPA) sets the floor, and it is materially more employee-protective than the Social Security burden suggests. The §118 severance ladder is the line that foreign employers consistently underweight when drafting the offer letter.| Standard | Statutory minimum | Common contractual uplift | Practical note |
|---|---|---|---|
| Working week | 40-48 hours (8h/day, 6 days) | 5-day weeks common in multinationals | Hazardous work capped at 42 hours per week (7 hours per day) |
| Annual leave | 6 paid working days after 1 year + 13 public holidays | 10-15 days typical at multinationals | The statutory floor rises with tenure in most collective agreements |
| Probation cap | Not mandated; market norm 119 days | Never extend past day 120 | Day 120 triggers §118 severance; extending probation creates exposure, not flexibility |
| Sick pay | 30 paid working days a year, employer-funded | Social Security top-up beyond 30 days | Medical certificate required for three or more consecutive days |
| Maternity leave | 98 days (60 employer-paid + 30 days Social Security at 50% wage) | Multinationals commonly top up to 100% | Employer carries the first 60 days of pay regardless of Social Security |
| Paternity leave | Not statutory for the private sector | 5-15 days typical at multinationals | Public-sector workers have a 15-day entitlement; the private sector is a contractual upgrade |
| Notice period | At least one full pay period (30-60 days for monthly-paid) | Payment in lieu permitted | Notice does not waive §118 severance after day 120 |
| Severance under §118 LPA | 30 days (120d-1y), 90 days (1-3y), 180 (3-6y), 240 (6-10y), 300 (10-20y), 400 (20y+) | Statutory; cannot be reduced by contract | Owed on termination without cause; criminal exposure up to THB 100,000 plus six months for non-payment |
| Overtime | Capped at 36 hours a week with written consent | 1.5x ordinary, 2x holiday, 3x holiday overtime | Statutory minimums; cannot be contracted away |
| Public holidays | 13 paid days a year | Sector-specific additions | Includes National Labour Day on 1 May |
| P.N.D.1 withholding tax | Monthly e-Filing by the 15th of the following month | PND.1 Kor + Form 50 Tawi annually | 1.5% per month surcharge on late withholding |
Should you use an EOR or set up an entity in Thailand?
The entity-versus-EOR maths in Thailand is unusual because the structural cost is dominated by the THB 2,000,000 capital deposit per foreign hire, not by registration fees or annual maintenance. Running the numbers without that line gives the wrong answer, especially on expatriate-led market entries.| Factor | EOR | Own Borisat Chamkat (Co., Ltd.) |
|---|---|---|
| Minimum capital | None (provider's entity) | THB 15 for Thai-only hires; THB 2,000,000 per foreign hire for work-permit sponsorship |
| Setup time | 5-10 business days | 1-2 days on clean DBD Biz Regist filings; bank account and paperwork add weeks |
| First-year all-in cost (single foreign hire) | USD 399-799 per month per hire | USD 59,000-62,000 (THB 2M capital + fees + audit + office) |
| Annual run-rate from year 2 | USD 399-799 per month per hire (flat) | USD 8,000-15,000 before payroll provider (audit, office, accounting) |
| Break-even headcount (Thai-national) | Cheaper at 1-8 hires | Cheaper from 9-12 hires |
| Break-even headcount (expatriate-led) | Cheaper at 1-15+ hires | Cheaper from 15-20 hires (THB 2M per foreign permit) |
| Wind-down | Contract notice + §118 payout | 6-12 month liquidation; capital recoverable after clearance |
| Work-permit sponsorship | Provider sponsors via its THB 2M base | Self-sponsor; the 4:1 Thai-to-foreign ratio applies |
| BOI promotion eligibility | Not available through an EOR | Direct route to capital and ratio relaxation plus a tax holiday |
Decision rule
Choose an EOR if:
- Your Thai headcount is 1 to 8 hires, especially in a mixed-nationality team
- Any hire needs work-permit sponsorship and the THB 2,000,000 capital is not yet committed
- You need payroll live within two weeks
- The roles are short-term or part of a pilot
Set up your own Borisat Chamkat if:
- You have 9 or more Thai-national hires, or 15 or more in an expatriate-led team
- You qualify for BOI promotion on technology, regional HQ, or advanced manufacturing
- You want direct control of benefits, provident fund, and §118 reserve treatment
- Your Thai operation is permanent enough to absorb a 6 to 12 month wind-down if you ever close it
What are the biggest compliance risks when hiring in Thailand?
Five risks bite the budget in order of how often they catch our readers out: under-reserving for §118 severance, the 119-day probation cliff, the Foreign Business Act and work permit framework, contractor misclassification under Supreme Court 3114/2567, and BOI-promoted status drift.| Risk | Source | What it triggers | Practical mitigation |
|---|---|---|---|
| Under-reserving for §118 severance | LPA 1998 §118 | 30 to 400 days of wages owed at separation without cause | Reserve against the band the average tenure is heading into, not the current headcount |
| 119-day probation cliff | LPA §118 trigger on day 120 | Separation cost steps from zero to 30 days of wages | Document performance from week one; run any separation conversation before week 17 |
| Foreign Business Act and work permits | FBA B.E. 2542 + Alien Working Act | THB 2M capital plus a 4:1 Thai-to-foreign ratio per foreign hire | Verify the provider's capital base and ratio compliance; test BOI eligibility before signing |
| Contractor misclassification | Supreme Court 3114/2567 | Retroactive Social Security + 2% monthly penalty; tax + 1.5% monthly penalty; criminal exposure up to THB 100,000 plus 6 months | Substance over form; if the engagement looks like a job, write it as employment |
| BOI-promoted status drift | BOI promotion guidelines | Loss of tax holiday, capital relaxation, and ratio waiver if the activity scope changes | Annual BOI compliance review; document scope alignment before any pivot |
Whichapp editorial view
If a provider says they cover Thailand through a "partner network", treat that as a warning sign during your procurement check, not a feature to be proud of. A partner-network arrangement leaves the employment liability with a counterparty you have not contracted directly with. That is the same structure the Supreme Court read against the formal paperwork in 3114/2567.
Ask for the DBD registration number of the entity that will actually employ your hire. If the answer is anything other than a directly registered Thai Co., Ltd. you can look up on the DBD register, spend the money with someone else.
In our assessment, that one question gets through every legal review and is the single most useful filter you can apply when shortlisting providers for Thailand.
Which hiring model fits your Thailand plans?
Here is how we think about choosing between the options, matched to the real questions People Ops leads bring to us.| If you... | Best model | Why | See also |
|---|---|---|---|
| Are hiring 1-3 Thai-national hires to test the market | EOR | No capital deposit; payroll live in days; no DBD entity overhead | Thailand EOR providers and pricing |
| Need expatriate work-permit sponsorship on hire 1 | EOR (or the BOI route) | Provider sponsors via its existing THB 2M base; avoids tying up the capital | Thailand EOR providers and pricing |
| Have 9-12 Thai-national hires | Own Borisat Chamkat + global payroll | Year-2 run-rate falls below the EOR fee; direct control of provident fund and benefits | Thailand global payroll providers |
| Qualify for BOI promotion (technology, regional HQ, EEC manufacturing) | Borisat Chamkat under a BOI certificate | Capital floor and 4:1 ratio relaxed; tax holiday of up to 8 years | Thailand global payroll providers |
| Engage a genuinely autonomous specialist with multiple clients | Contractor (Civil and Commercial Code) | Passes the 3114/2567 substance test if no exclusivity, scheduling, or tooling-mediated control | Thailand contractor management guide |
| Run a contractor cohort under enforcement pressure | Convert to employment via EOR | Department of Employment enforcement is at multi-year highs; the substance-over-form rule now bites | Thailand contractor management guide |
| Cross 10 heads on the payroll | Borisat Chamkat + Employee Welfare Fund readiness | The Employee Welfare Fund kicks in on 1 October 2026 for employers with 10 or more staff; reconcile quarterly | Thailand global payroll providers |
Recommended Thai EOR providers
These five providers operate directly owned Thai entities with verifiable DBD registration or publicly disclosed local registration. Anything described as "Thailand coverage via a partner network" should be treated as an extra layer of counterparty risk, not as the same thing as the five below.| Provider | Thai entity (DBD) | City | Pricing band | Best for | View provider |
|---|---|---|---|---|---|
| Deel | DEEL PAYROLL (THAILAND) CO., LTD. (DBD 0105565074796) | Bangkok | ~USD 599/mo | Broadest work-permit sponsorship throughput | View Deel → |
| Remote | Locally registered Thai entity (number not publicly surfaced) | Bangkok | ~USD 599/mo | Cleanest dual-track §118 accrual reporting | View Remote → |
| Multiplier | MULTIPLIER TECHNOLOGIES (THAILAND) CO., LTD. (DBD 0105564057286) | Bangkok | ~USD 400-499/mo | Best value at entry tiers; APAC-native coverage | View Multiplier → |
| Papaya Global | Locally registered Thai entity (number not publicly surfaced) | Bangkok | ~USD 599-799/mo | Enterprise reporting and global treasury integration | View Papaya → |
| Atlas | Locally registered Thai entity (number not publicly surfaced) | Bangkok | ~USD 599-899/mo | Direct-entity model across all markets; no partner network | View Atlas → |
Before you send the Thai offer letter
- Confirm the probation clause is written to 119 days and never to "three months" or "six months".
- Check the all-in employer quote includes provident fund (if offered) and an explicit §118 reserve line.
- Get the DBD registration number of the entity that will actually employ your hire, not just the counterparty named on the master services agreement.
- Look that DBD number up on the Department of Business Development register.
- Confirm work-permit capacity: the provider's THB 2,000,000 capital base and current 4:1 ratio headroom.
- Test BOI eligibility before signing if the role is in technology, regional HQ, or EEC manufacturing.
First 90 days after the Thai hire starts
- Register the hire with the Social Security Office within 30 days of the start date.
- Set the day-119 calendar reminder for any probation review and separation decision.
- Confirm P.N.D.1 monthly e-Filing is scheduled by the 15th of each following month.
- Issue translated work rules under the Labour Protection Act if Thai headcount crosses 10.
- Enrol the hire in the provident fund if the role band offers it.
- Plan the Employee Welfare Fund reconciliation cadence ahead of 1 October 2026 if headcount sits above 10.
Frequently asked questions about hiring in Thailand
What is the total employer cost in Thailand including §118 severance?
For a Bangkok engineer on THB 60,000 a month, annual mandatory employer cost is around THB 10,980 (about 1.5%): Social Security at THB 875 a month capped (THB 10,500) plus Workmen's Compensation at 0.2% on the capped earnings (THB 480). The §118 severance reserve, owed at separation without cause, adds 30 days at 120 days of service, 90 days at year one, and scales to 400 days at twenty-plus years. Provident fund contributions (3 to 5% from the employer, near-universal at senior multinationals) and a 13th-month bonus add another 12 to 15% on top of base, and EOR fees of USD 399 to 799 a month sit alongside.
What changed on 1 January 2026 in Thai payroll?
The Social Security wage base rose from THB 15,000 to THB 17,500 a month, lifting the capped contribution from THB 750 to THB 875 per side, a 16.7% jump on the cap. The DBD Biz Regist platform became the sole mandatory channel for Co., Ltd. registration, dropping processing from one to three weeks down to one to two business days on clean filings. The Employee Welfare Fund re-introduction is scheduled for 1 October 2026 at 0.25% per side, applying to employers with 10 or more employees.
Why is every Thai contract written to 119 days?
Day 120 of service triggers the §118 severance obligation under the Labour Protection Act. An employee dismissed without cause from that point is owed 30 days of wages immediately, rising to 90 days at year one, 180 at three years, 240 at six, 300 at ten, and 400 at twenty-plus years. The market has settled on 119-day probation clauses precisely to keep terminations during the trial window free of statutory severance. Any offer letter that quietly extends probation past day 120 is engineering exposure, not flexibility.
How does the THB 2 million capital plus 4:1 ratio affect foreign hiring?
A foreign-majority Thai company cannot legally issue a work permit to an expatriate employee without THB 2,000,000 of registered capital sitting in a Thai bank account, and without four Thai nationals on the payroll for every foreign hire. The constraint binds at the entity level, not at the EOR level, which is why expatriate-led entries default to EOR for considerably longer than the Thai-national cost maths alone would justify. A BOI-promoted activity can relax both the capital floor and the 4:1 ratio on qualifying projects.
What is BOI-promoted status and how does it change the entity decision?
A Board of Investment certificate grants up to eight years of corporate income tax exemption on promoted activities, relaxes the 4:1 Thai-to-foreign ratio, and reduces or waives the THB 2,000,000 capital floor per foreign work permit. Promoted activities cover technology, advanced manufacturing, regional headquarters, and EEC corridor projects. The certificate changes the entity-versus-EOR maths for qualifying foreign-led entries, and it is the route most expatriate-heavy projects to Chonburi or Rayong take.
What is Supreme Court judgment 3114/2567 and why does it matter for EOR work?
The Supreme Court ruled in early 2026 that an employment relationship continued past the formal cut-off because no severance was paid and duties remained identical. The court read substance over form, which sharpens how Thai courts will treat EOR-to-client transitions, contractor-to-employee conversions, and any restructure where the working reality outlives the paperwork. Clean §118 severance events at each cut-off, with documented payment under the relevant tenure band, are the practical mitigation.
What are the misclassification consequences and how active is enforcement?
A reclassification finding triggers retroactive Social Security contributions plus a 2% monthly penalty, unpaid withholding tax plus a 1.5% monthly penalty, administrative fines up to THB 2,000 per incorrect filing, and criminal liability up to THB 100,000 plus six months imprisonment for failure to pay severance. The Department of Employment inspected 38,734 businesses and 523,706 foreign workers between 1 October 2024 and 18 April 2025, prosecuting 1,329 employers. The "Trai Thep Phithak" task force prosecuted a further 228 migrant workers for permit violations in the same window.
Which EOR providers operate a directly owned Thai entity?
Two major providers have publicly verifiable DBD registration numbers: DEEL PAYROLL (THAILAND) CO., LTD. (DBD 0105565074796, Bangkok) and MULTIPLIER TECHNOLOGIES (THAILAND) CO., LTD. (DBD 0105564057286, Bangkok). Remote, Atlas, Globalization Partners, and Papaya Global state they operate through their own registered Thai entities, although the DBD numbers are not always surfaced on country pages. Local specialists including Acclime Thailand, AYP Group, and PRTR run their own Thai entities by construction.
How do I verify an EOR's Thai entity at the DBD?
Ask the EOR for the legal name of the employing entity (not the group parent) and its DBD registration number. Search the DBD Biz Regist platform or the Department of Business Development public register for the entity by name or number. The lookup confirms the company is active, lists the registered directors, and identifies the registered share capital. Do this before signing the employment contract, not after, because the entity name on the contract is the counterparty Thai courts will look at if the relationship is disputed.
Can I dismiss a Thai employee for poor performance after probation?
Yes, but the test is "just cause" under §119 of the Labour Protection Act, or "without cause" with §118 severance owed in full. Performance dismissals need documented warnings, a fair process, plus notice and §118 severance unless the conduct meets the §119 just-cause threshold (gross misconduct, dishonesty, prolonged unauthorised absence, or serious negligence). Budget at least 90 to 180 days of wages plus legal fees for a contested dismissal past year one, and work with a Thai employment lawyer from week one, not week six.
Shortlist these Thailand-registered EOR providers
Deel
Operates via DEEL PAYROLL (THAILAND) CO., LTD. (DBD 0105565074796, Bangkok). Broadest work-permit sponsorship throughput.
Remote
Operates through its own locally registered Thai entity. Cleanest dual-track §118 accrual reporting in our 2026 audit.
Multiplier
Operates via MULTIPLIER TECHNOLOGIES (THAILAND) CO., LTD. (DBD 0105564057286, Bangkok). Competitive entry pricing.
Our verdict for People Ops leads
If your Thai headcount is 1 to 8 and mixed-nationality, use an EOR and pick one of the verified DBD-registered providers above. If you are at 9 or more Thai-national hires, or 15 or more in an expatriate-led team, setting up your own Borisat Chamkat (with BOI promotion if you qualify) usually pays back within 18 months on direct cost alone. If you are leaning towards contractors, run the substance test against Supreme Court 3114/2567 before you sign anything. Organisational integration and tooling-mediated control beat the contractual label every time the Department of Employment audits a 14-month engagement. The first practical step is to build the §118 severance reserve and the THB 2,000,000-per-foreign-hire capital plan against the actual headcount roadmap, rather than the headline EOR fee. That one piece of work removes roughly 80% of the budget surprises that show up three months later, and it is the number that holds up across every finance and legal review on the way to an offer letter.Running payroll for Thailand employees? See our guide to payroll in Thailand.
Running payroll for Thailand employees? See our guide to payroll in Thailand.