Hiring at a Glance

Thailand’s economy is driven by manufacturing, agriculture, and a growing service sector, with international trade and tourism providing additional momentum. Thailand’s population (~70M) supplies a large labor force skilled in automotive, electronics, hospitality, and agro-processing. Key facts: capital is Bangkok, official language Thai, and local currency is the Thai Baht (THB). Thai labor law mandates an 8-hour day (48 hours/week), with statutory minimum benefits: paid annual leave (at least 6 days/year) and up to 30 days paid sick leave. Female employees are entitled to 90 days maternity leave (45 days at full pay). In any termination, a written notice of 30 days (or pay in lieu) is required, and workers with ≥120 days’ service are eligible for severance pay (30–400 days’ pay depending on tenure). These strong worker protections can make compliance complex.

‍

Key Characteristics of the Talent Market

Thailand offers a diverse, multilingual workforce, strong in manufacturing, logistics, and tourism support services. University graduation rates are rising, and many entry-level workers have some English and technical training. Labor costs are still competitive vs. other Asia Pacific countries, but regulatory overhead is significant. Employers face rigid labor protections: terminations without cause often lead to legal claims (the law favors the worker). Unions are present in some industries, and collective agreements can set higher standards than law. Common HR considerations include: minimum wage compliance (≈THB 331/day in Bangkok), strict limits on working hours/overtime, and mandatory social security contributions (5% employer/5% employee on wages up to THB 15,000). These factors make local payroll and compliance burdensome, encouraging some firms to use EOR/PEO arrangements.

‍

Most In-Demand Skills in 2026

Thailand’s talent demand is shifting toward high-tech and high-value roles. In tech and engineering, employers seek software developers, cloud architects, cybersecurity experts, and data analysts (reflecting Thailand’s push into digital industries). Manufacturing firms also want specialists in automation, robotics, and quality assurance. Growing sectors require bilingual project managers and finance/legal professionals to handle foreign investment. Other hot skills include supply-chain management, marketing (especially for e-commerce), and finance/accounting. According to industry sources, key shortages include IT and data science (e.g. data scientists ~฿7–14M/yr), software engineers (≅฿6–12M/yr), and biomedical/healthcare talent. Thailand’s universities produce many engineers and service graduates, but skills gaps remain in advanced IT, analytics, and compliance expertise.

‍

Top Universities Supplying Talent

Leading Thai universities are the main talent pipelines. Notable institutions include Chulalongkorn University, Mahidol University, and King Mongkut’s University of Technology (Thonburi), all strong in engineering and IT. Thammasat University and Chulalongkorn’s business schools produce many finance and management graduates. Engineering and technical graduates also come from universities such as King Mongkut’s Institute of Technology Ladkrabang and Kasetsart University. For software and digital fields, many Thai students study informatics at top polytechnic institutes. Employers should note that quality varies: graduates often need training in English and practical tools.

‍

Salary Benchmarks for Roles

Thailand offers relatively low base salaries compared to the West. For reference (2025 data): Software engineers typically earn ฿600K–1.2M per year (total comp ~฿0.6–1.2M), while data analysts and QA roles range around ฿400K–900K. A mid-level finance manager might earn ฿800K–1.4M, and skilled engineers (e.g. embedded, mechanical) around ฿700K–1.1M. Language skills (e.g. English or Chinese) can add a premium. Bear in mind social security contributions (~5% each side) are calculated on salary up to ฿15,000/mo. These figures are illustrative – actual pay may vary by industry and experience. (For example, crowd-sourced pay data show software engineers averaging ~฿0.6–1.84M.)

‍

Employer of Record vs Legal Entity Setup in Thailand

‍

To Legally Hire Employees, a Company Must

• Establish an Entity or Use an EOR/PEO. Thai law requires employers to have a registered local entity or engage a local agent. Registering a Thai limited company entails government fees (about 1% of registered capital, typically ฿1,000–5,000) and at least three shareholders (49% foreign ownership cap applies in most cases). Alternatively, a foreign firm can contract with an Employer of Record to hire staff on its behalf, avoiding local setup.
  
  
• Register for Tax and Social Security. The company must apply for a Tax ID (withholding tax number) at the Revenue Department and register employees for income tax withholding and value-added tax if thresholds apply. Each new employee must be reported to the Social Security Office; employers and employees each contribute 5% of wages (up to a wage cap) to the Social Security Fund. Employers also register workers for unemployment and workmen’s compensation insurance through the Labor Department.
  
  
• Obtain Work Permits (for Foreign Workers). Foreign staff require a Non-Immigrant Visa (typically “B” category) and a Work Permit from the Department of Employment. The employer arranges these after hiring.
  
  
• Draft Compliant Contracts. Employment contracts must be in Thai (an English version may be included) and cover compulsory benefits (vacation, leave, insurance). Misclassifying an employee as a contractor or excluding statutory allowances can lead to penalties.
  These steps ensure legal compliance. Failure to withhold taxes or register for social contributions can trigger fines and retroactive liability.
  

‍

Cost of Entity Setup

Starting a Thai company involves moderate up-front costs. Government registration fees are based on capital (for example, ~฿5,000 per ฿100K of capital). For a small business, total outlays (including notary, legal, and service fees) often run in the tens of thousands of baht. Ongoing expenses can be significant: audited financial statements (required if paid-up capital >฿5M or annual revenue >฿30M) cost extra, and annual tax filings/accounting fees add several thousand baht per year. The mandatory social insurance and labor fund contributions (insurance and provident fund contributions can reach ~5% of payroll) further add to costs. In practice, entity setup is a one-time hurdle, but monthly compliance (payroll admin, tax filings, statutory reports) and liabilities (e.g. severance reserves) accumulate. Many companies find that outsourcing via an EOR avoids these persistent overheads and risks.

‍

What Hiring Through an EOR Means in Thailand

An Employer of Record (EOR) in Thailand becomes the legal employer registered with the Ministry of Labour, while the employee works exclusively for your company. You retain full operational control over work, performance, and reporting lines, while the EOR assumes responsibility for all employer obligations under Thai labour, tax, and immigration law.

Thailand is not an at-will employment market. Employment relationships are governed primarily by the Labour Protection Act (LPA), with strict rules around:

• Employment contracts and working hours
  
  
• Mandatory social security registration
  
  
• Termination notice and statutory severance
  
  
• Foreign employee work permits and visa sponsorship
  
  

Foreign companies cannot legally employ staff in Thailand without:

• A Thai-registered employer and
  
  
• The ability to sponsor work permits and non-immigrant visas for foreign nationals
  
  

An EOR provides this legal employer and sponsorship framework without requiring you to establish a Thai entity.

An EOR in Thailand handles:

• Thai-law-compliant employment contracts (Thai language enforceable)
  
  
• Payroll processing in THB
  
  
• Personal Income Tax (PIT) withholding and filings
  
  
• Social Security Fund (SSF) registration and contributions
  
  
• Statutory leave and holiday compliance
  
  
• Work permit and non-immigrant visa sponsorship
  
  
• Terminations, notice periods, and statutory severance
  
  
• Correct classification of Thai nationals vs foreign employees
  
  

This model works best for companies that want to hire in Thailand without managing entity setup, labour registrations, or immigration sponsorship directly.

‍

Risk Involved in Both Models

Thailand’s employment framework is statute-driven and labour-court enforced. Labour courts actively scrutinise employer conduct, particularly during terminations.

Key characteristics of Thai labour compliance:

• Written employment contracts are required
  
  
• At-will termination does not exist
  
  
• Statutory severance is mandatory and tenure-based
  
  
• Social Security registration is compulsory
  
  
• Foreigners cannot work without valid work permits
  
  
• Labour courts commonly favour employees
  
  

Compliance failures can result in:

• Mandatory severance payouts
  
  
• Backdated SSF contributions
  
  
• Labour court compensation awards
  
  
• Fines for illegal foreign employment
  
  
• Invalid terminations and reinstatement claims
  
  

In Thailand, termination errors are the most common source of employer liability.

‍

EOR Vs. Entity: When to use What?

‍

Why an EOR Is the Most Efficient Way to Hire in Thailand

Thailand offers a strong talent base across engineering, manufacturing, operations, and regional support roles—but compliance is procedural, not flexible.

An EOR is not a payroll vendor. It is the legal employer recognised by Thai authorities, responsible for:

• Labour Protection Act compliance
  
  
• Social Security registration
  
  
• Payroll tax filings
  
  
• Immigration sponsorship
  
  
• Termination execution
  
  

This separation allows foreign companies to operate in Thailand without inheriting labour-law and immigration exposure they are not equipped to manage.

‍

#1. EOR Manages Work Permit & Visa Dependency Risk

In Thailand, employment legality for foreigners is inseparable from immigration status.

Key realities:

• A valid non-immigrant visa is required before a work permit
  
  
• A work permit is employer-specific
  
  
• Role, location, and job description are strictly enforced
  
  
• Working outside permit scope is illegal
  
  

Example:

An EOR ensures employment remains continuously lawful, not just at onboarding.

‍

#2. EOR Eliminates Social Security & Payroll Compliance Gaps

Thailand’s employment cost structure is driven by mandatory SSF contributions, not just salary.

Incorrect payroll handling can lead to:

• Retroactive SSF payments
  
  
• Labour inspection penalties
  
  
• Employee wage claims
  
  

EOR payroll systems are configured to Thai statutory ceilings and contribution caps, which are often misunderstood by foreign employers.

‍

#3. EOR Controls Termination & Severance Exposure

Thailand does not permit free termination without cost. Employers must comply with:

• Statutory notice (or pay in lieu)
  
  
• Mandatory severance based on tenure
  
  
• Fair termination standards
  
  

Statutory severance ranges from 30 days to 400 days of wages, depending on length of service.

An EOR safeguards employers by:

• Applying correct severance ladders
  
  
• Managing lawful notice
  
  
• Executing compliant exits
  
  
• Representing the employer in disputes
  
  

In Thailand, severance mistakes are non-negotiable and enforced strictly.

‍

#4. EOR Avoids Entity & Administrative Overhead

Setting up a Thai entity requires:

• Business registration
  
  
• Tax and SSF registration
  
  
• Ongoing filings
  
  
• Immigration compliance capability

EOR converts Thailand expansion into a low-commitment, compliant hiring model.

‍

EOR vs. PEO in Thailand: How to Decide the Right Hiring Model?

A PEO in Thailand cannot legally employ workers or sponsor visas. A Thai legal entity is required.

• PEO: HR/payroll support only
  ‍
• EOR: Legal employer + immigration sponsor

The core decision is simple:

Do you want to be responsible for labour law and immigration compliance in Thailand?

If not, EOR is the correct model.

‍

Payroll, Taxes, and Monthly Compliance

Thailand has detailed monthly payroll requirements:

• Income Tax Withholding. Employers deduct progressive PIT from each paycheck (rates 0–35% on wages) and remit it monthly. An employer must file a monthly withholding tax return (PND1) and deposit the tax by the 7th of the following month. Year-end, employers reconcile total tax withheld.
  
  
• Social Security (SSO) and Benefits. Monthly SSO contributions (5% by employer, 5% by employee) are due by the 15th of the next month. Employers also contribute to the Workmen’s Compensation Fund (~0.2–1% of payroll) to cover industrial accidents.
  
  
• Labor Welfare and Other Funds. Some industries require contributions to industry-specific welfare funds and training funds. Unemployment fund contributions (1–3% of salary) cover severance and unemployment benefits.
  
  
• Payroll Filings and Reporting. Besides tax and SSO deposits, employers must prepare monthly payslips (in Thai) and year-end income statements. An annual social security report and annual employer labor welfare report may be required. Compliance is stringent: unpaid wages or late filings can incur penalties.
  These obligations mean the payroll team must gather attendance, compute gross-to-net salaries, issue payslips, remit bank payments to employees, and pay all withholdings and contributions on schedule each month.
  

‍

Salary Structure: Where Most Compliance Issues Begin

The complexity of Thailand’s benefits system means pay structure compliance is critical. Common pitfalls include:

• Allowances vs. Base Salary. Thai law often treats fixed allowances (housing, transport, meals) as part of salary for calculating severance and SSO contributions. Misclassifying them can understate severance liability or reduce required contributions. Employers should clearly define any non-fixed reimbursements to avoid hidden payroll costs.
  
  
• Bonuses and Overtime. Mandatory year-end or performance bonuses, if promised in contract, count toward regular pay. Similarly, overtime premiums (150–300% of hourly wage) must be correctly applied. Errors in computing overtime pay (e.g. not obtaining pre-approval for overtime hours) can lead to disputes.
  
  
• Social Insurance Caps. SSO contributions cap out at 15,000 THB monthly. Paying part of salary as “bonus” can sometimes reduce reported wages, but insurers scrutinize this. Under-reporting wages to lower SSO outlay risks penalties.
  Overall, ensuring that all components of compensation comply with Thai definitions (especially for severance and benefits) is a key source of compliance risk.
  

‍

What Monthly Payroll Operations Actually Involve

Managing payroll in Thailand typically means:

• Collecting employee timesheets and gross pay rates, including shift/overtime hours.
  
  
• Calculating gross pay, then deducting mandatory items (PIT, employee social contributions, personal loans or court orders if any).
  
  
• Computing employer contributions (employer SSO, WCF, others).
  
  
• Generating detailed payslips (Thai language) for employees.
  
  
• Transferring net salaries to employees’ Thai bank accounts.
  
  
• Depositing withheld taxes to the Revenue Department and SSO payments to the Social Security Office by mid-month.
  
  
• Preparing and filing statutory reports (monthly tax forms, labor fund contributions, etc.).
  
  
• Conducting an annual social security contribution report and year-end tax reconciling.

These steps are time-consuming and error-sensitive. To comply, employers often rely on local payroll experts or EOR platforms. Failure to follow the exact sequence (or missing a statutory cutoff) can trigger interest, fines, or audits by Thai authorities.

‍

Step-by-Step Onboarding Process With an EOR in Thailand

Hiring in Thailand requires coordination across labour law, tax, and immigration systems. Below is a compliant onboarding workflow through Bolto EOR.

‍

1. Confirm a Ministry of Labour-Registered Employer

Verify that the EOR is registered to employ staff and sponsor work permits in Thailand.

‍

2. Validate Nationality, Role & Permit Eligibility

Confirm whether the hire is a Thai national or foreigner. This determines:

• Visa pathway
  
  
• Work permit scope
  
  
• Onboarding timeline
  

‍

3. Request a Full Cost-to-Company Breakdown

The quote should include:

• Gross salary
  
  
• SSF contributions
  
  
• Severance accrual
  
  
• Visa and work permit costs
  
  
• EOR management fee
  
  

Thailand employment cost is tenure- and structure-dependent, not just salary-based.

‍

4. Initiate Visa & Work Permit Process (If Applicable)

For foreign employees, the EOR manages:

• Non-immigrant visa
  
  
• Work permit issuance
  
  
• Renewal scheduling
  
  

Employment cannot legally begin without permit approval.

‍

5. Generate Thai-Compliant Employment Contract

Contracts must:

• Comply with the Labour Protection Act
  
  
• Reflect statutory working hours and leave
  
  
• Include termination and severance terms
  

‍

6. Register Employee with Authorities

The EOR registers the employee with:

• Social Security Office
  
  
• Tax authorities
  

‍

7. Run Payroll & Maintain Ongoing Compliance

The EOR manages:

• Monthly payroll
  
  
• SSF and tax filings
  
  
• Leave and overtime compliance
  
  
• Immigration renewals
  

‍

Build Your Thailand Team with Bolto EOR

Expanding into Thailand is fundamentally a labour-law and immigration exercise, not just a hiring decision.

Bolto’s Employer of Record model absorbs that complexity—so you can operate in Thailand without becoming the legal employer or visa sponsor.

‍

Local Labour & Immigration Compliance, Fully Managed

Bolto handles:

• Thai-compliant contracts
  
  
• Payroll and statutory contributions
  
  
• Work permits and visas
  
  
• Labour authority interactions
  
  

You control work and output—Bolto carries employer liability.

‍

Hire Without Entity Setup or Immigration Exposure

With Bolto EOR, you can:

• Hire in weeks
  
  
• Test Thailand as a market
  
  
• Scale or exit without entity unwind
  

‍

Transparent Costs, No Compliance Surprises

All statutory, immigration, and employment costs are disclosed upfront—no hidden penalties later.

‍

Full Employee Lifecycle Support

From onboarding to lawful termination and severance, Bolto manages the entire lifecycle.

‍

Built for Risk-Controlled Expansion in Thailand

Thailand rewards compliant employers and penalises procedural mistakes. Bolto’s EOR model enables growth without inheriting labour or immigration risk.

‍