Payroll Information

Payroll in Thailand is subject to a complex set of regulations and requirements. Employers are responsible for ensuring compliance with all relevant legislation and providing their employees with the benefits and entitlements required by law. It is recommended that companies operating in Thailand seek the advice of a local expert to ensure compliance and avoid any potential legal issues.

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Payroll Cycle

In Thailand, the standard payroll cycle is monthly. Employers are required to pay their employees within 7 days of the end of the month. Some companies may choose to pay their employees bi-weekly or on a different schedule, but monthly payment is the most common.

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Employment Law

The main legislation governing employment in Thailand is the Labor Protection Act (LPA), which sets out the rights and responsibilities of employers and employees. The LPA covers issues such as working hours, overtime, holidays, sick leave, maternity leave, termination, and severance pay. Employers are required to provide certain benefits to their employees, such as social security contributions, health insurance, and a provident fund.

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Employment Contract

Employment contracts in Thailand can be either fixed-term or indefinite. A fixed-term contract is for a specific period of time, while an indefinite contract has no specific end date. The contract must be in writing and signed by both the employer and the employee. It should include details such as job title, salary, working hours, and benefits. Employers are required to provide employees with a copy of their contract in Thai.

Under Thai law, the employment contract cannot be less favorable to the employee than the minimum standards set out in the LPA. Employers are required to comply with the terms of the contract and the LPA, and failure to do so can result in legal action.

In addition to the LPA, employers in Thailand must comply with other legislation such as the Social Security Act, the Workmen's Compensation Act, and the Revenue Code.

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Probation Period / Trial Period

Employers in Thailand are allowed to have a probationary period for new employees, which cannot exceed 119 days. During this period, the employer can terminate the employment contract without having to provide a reason or pay severance. However, the probationary period cannot be extended, and the employer must pay the employee their full salary during this time.

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Working Hours

The standard working hours in Thailand are 8 hours per day and 48 hours per week. However, in some industries, such as hospitality and healthcare, working hours may be longer. Employers are required to provide their employees with at least 1 day off per week, and if an employee works on their day off, they must be paid overtime.

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Overtime

Overtime in Thailand is calculated as 1.5 times the employee's hourly rate for the first 2 hours of overtime per day, and double the hourly rate for any additional hours. Employers are not allowed to require employees to work more than 3 hours of overtime per day, or more than 36 hours of overtime per month.

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Bonus

Employers in Thailand are not legally required to provide bonuses to their employees, but it is a common practice. Bonuses are usually paid at the end of the year, and the amount is typically based on the employee's performance and the company's financial performance.

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Termination

Employers in Thailand are allowed to terminate an employee's contract for various reasons, including poor performance, misconduct, or redundancy. However, termination must be done in accordance with the terms of the employment contract and the Labor Protection Act. If an employee is terminated without cause, the employer must provide severance pay based on the length of service.

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Notice Period

Under Thai law, employers are required to provide employees with notice of termination, unless the termination is for cause. The notice period must be at least 1 pay period, and longer notice periods may be required for employees with longer service. Alternatively, the employer may choose to pay the employee in lieu of notice.

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Redundancy / Severance Pay

If an employer needs to make an employee redundant, they must follow a specific procedure under Thai law. This includes providing the employee with notice, offering suitable alternative employment if possible, and paying severance based on the length of service.

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Maternity Leaves

Under Thai law, female employees are entitled to 98 days of maternity leave, which includes a minimum of 45 days' paid leave. The employee must provide the employer with a medical certificate stating the expected date of delivery, and the employer must provide the employee with time off for antenatal checkups. During maternity leave, the employer is required to pay the employee their regular salary.

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Paternity Leaves

In addition to maternity and paternity leave, employees in Thailand are entitled to parental leave of up to 7 days per year to take care of their children. This leave can be taken in one or more increments, and the employer is required to pay the employee their regular salary during this time.

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Parental Leaves

There is no additional parental leave in Thailand.

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Vacation and Annual Leaves

Employees in Thailand are entitled to a minimum of 6 days of annual leave per year, which increases to a maximum of 30 days based on the length of service. Annual leave must be taken within 2 years of the end of the year in which it was accrued. The employer is required to pay the employee their regular salary during annual leave.

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Sick Leaves

Employees in Thailand are entitled to a maximum of 30 days of sick leave per year. The employer is required to pay the employee their regular salary for the first 30 days of sick leave, and half their regular salary for the next 30 days.

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Other Leaves

In addition to the above types of leave, employees in Thailand may be entitled to other types of leave, such as bereavement leave or study leave. The terms and conditions of these types of leave are typically outlined in the employment contract or company policy.

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Holidays

There are 16 public holidays in Thailand, which are mandated by the government. These holidays include New Year's Day, Songkran (Thai New Year), Labor Day, and the King's Birthday. Employers are required to provide their employees with a day off on public holidays, and if an employee works on a public holiday, they must be paid double their regular salary.

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Other Benefits

Employers in Thailand may offer their employees other benefits, such as health insurance, dental insurance, or a provident fund. These benefits are not mandated by law, but they are a common practice in many companies.

Taxation

Taxation in Thailand is subject to a complex set of regulations and requirements, including those related to personal income tax and social security. Employers and employees must ensure compliance with all relevant legislation and make timely payments to the relevant authorities.

Personal Income Tax

Thailand has a progressive personal income tax system, which means that the more an individual earns, the higher the tax rate they are required to pay. The personal income tax rates in Thailand are as follows:

• Income up to THB 150,000: 0%
• Income between THB 150,001 and 300,000: 5%
• Income between THB 300,001 and 500,000: 10%
• Income between THB 500,001 and 750,000: 15%
• Income between THB 750,001 and 1,000,000: 20%
• Income between THB 1,000,001 and 2,000,000: 25%
• Income between THB 2,000,001 and 5,000,000: 30%
• Income over THB 5,000,000: 35%

In addition to the above tax rates, individuals in Thailand are entitled to a personal allowance of up to THB 100,000, which is deducted from their taxable income. There are also certain deductions and allowances available for specific expenses, such as medical expenses and donations to charitable organizations.

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Social Security

All employees in Thailand are required to make contributions to the social security system, which provides benefits such as medical care, disability benefits, and retirement benefits. The social security contribution rate for employees is currently 5% of their monthly salary, up to a maximum of THB 750 per month. Employers are also required to make contributions to the social security system on behalf of their employees, at a rate of 5% of the employees' monthly salary, up to a maximum of THB 750 per month.

In addition to the above contributions, employees may also be required to make contributions to other social security programs, such as the Workmen's Compensation Fund or the Labour Protection Fund, depending on their industry or type of work.

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Visas and Foreign Workers

Obtaining a work visa in Thailand requires careful planning and adherence to the requirements and regulations set forth by the government. Working with a qualified immigration lawyer or consultant can help ensure a smooth and successful visa application process.

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General Information

Work Visa Requirements

To obtain a work visa in Thailand, the following requirements must be met:

1. A valid passport with at least 6 months of validity remaining
2. A non-immigrant visa, which can be obtained from a Thai embassy or consulate in the applicant's home country
3. A work permit, which is issued by the Department of Employment in Thailand
4. Proof of education or professional qualifications
5. Medical certificate certifying the applicant is free from specific diseases such as tuberculosis, syphilis, and leprosy.

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Application Process

The application process for a work visa in Thailand involves several steps:

1. The applicant must obtain a non-immigrant visa from a Thai embassy or consulate in their home country.
2. Once in Thailand, the applicant must apply for a work permit from the Department of Employment.
3. The work permit application must include documents such as proof of education or professional qualifications, a medical certificate, and a letter of employment from the sponsoring company.
4. If the work permit is approved, the applicant must then apply for a visa extension at the Immigration Bureau in Thailand.

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Duration of Work Visa

The initial work visa is usually valid for up to 90 days, after which the applicant must obtain a visa extension. The work permit is typically valid for up to one year, and can be renewed annually.

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Work Visa Restrictions

It is important to note that work visas in Thailand are tied to a specific employer and job. If an individual wishes to change employers or job positions, they must obtain a new work permit and visa. Additionally, it is illegal for foreigners to work in certain industries in Thailand, such as agriculture or manual labor.