Employer of Record in Thailand

An Employer of Record (EOR) is a company that legally hires employees on your behalf in Thailand. This means you can build a team in Thailand without setting up a local legal entity, which can be a complex and time-consuming process. The EOR handles all the HR-related legal and administrative tasks, such as payroll, taxes, benefits, and compliance with Thai labor laws. You manage your employee's day-to-day work and responsibilities, while the EOR takes care of the employment paperwork and legalities. For companies looking to hire talent in Thailand, an EOR provider like Rivermate can simplify the process.

How an Employer of Record (EOR) Works in Thailand

Using an EOR in Thailand streamlines the process of hiring employees. Here is a simple breakdown of how it works:

1. You Find the Talent: You recruit and select the candidate you want to hire in Thailand.
2. The EOR Hires Them: The EOR legally hires the employee through its local Thai entity. They handle the employment contract, ensuring it complies with all Thai labor laws.
3. Onboarding: The EOR manages the entire onboarding process, collecting all necessary personal and tax information from the new employee.
4. Payroll and Benefits: The EOR processes monthly payroll, calculates and withholds taxes, and manages employee benefits, including social security contributions.
5. Ongoing Compliance: The EOR stays up-to-date with Thailand's labor regulations to ensure your employment practices remain compliant. This includes managing leave entitlements, working hours, and other legal requirements.
6. You Manage Your Team: You direct your employee's daily tasks, projects, and performance, just like any other member of your team. The EOR remains the legal employer in the background.

Why use an Employer of Record in Thailand

Using an EOR in Thailand helps you expand your team quickly and efficiently. It removes the significant administrative and legal burdens that come with establishing a business in a new country. This allows you to focus on your business goals instead of getting stuck on complex local regulations.

Here are some key benefits of using an EOR in Thailand:

• Enter the Market Faster: Setting up a legal entity in Thailand can take months. An EOR allows you to hire employees almost immediately, speeding up your entry into the Thai market.
• Reduce Costs: You avoid the high costs associated with company registration, legal fees, and setting up local HR and payroll infrastructure.
• Ensure Legal Compliance: EORs have expert knowledge of Thai labor laws. They manage the risk of non-compliance, protecting you from potential fines and legal issues related to payroll, taxes, and employment contracts.
• Simplify HR and Admin: The EOR handles all HR administrative tasks. This includes everything from payroll processing and tax filings to managing benefits and ensuring compliance with leave policies.
• Hire Without a Local Entity: You can hire full-time employees in Thailand without the legal requirement of creating a local company.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Thailand includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Thailand.

Hiring in Thailand offers a great opportunity to tap into a skilled workforce. To do it right, you need to understand the local labor laws. The main law to know is the Labor Protection Act, which covers everything from wages and working hours to benefits and termination. If you have ten or more employees, you also need to create and post work rules for everyone to see. This guide will walk you through the key things you need to know to hire in Thailand.

Employment contracts & must-have clauses

While you can have a verbal agreement, a written employment contract is always a good idea. It protects both you and your employee by making the terms of employment clear. Thai law recognizes two main types of contracts: indefinite term and fixed term. Fixed-term contracts are for temporary work, like a specific project, and have a set end date.

Here are the essential clauses to include in your employment contracts:

• Job details: Include the employee's job title, duties, and responsibilities.
• Compensation: Clearly state the salary, including how and when you will pay it.
• Working hours: Define the standard daily and weekly working hours.
• Probation period: If you have one, outline its duration and conditions.
• Leave entitlements: Detail the annual leave, sick leave, and other types of leave the employee can take.
• Termination: Explain the conditions for ending the contract and the required notice period.

Probation periods

You can include a probation period to see if a new employee is a good fit. In Thailand, there's no legally mandated length for a probation period, but it typically lasts up to 119 days.

This 119-day period is important because employees who work for 120 days or more are entitled to severance pay if you terminate their employment without cause. If you end the employment within the first 119 days, you don't have to pay severance.

Keep in mind that even during probation, employees have rights under the Labor Protection Act.

Working hours & overtime

The standard workweek in Thailand is a maximum of 48 hours, with no more than 8 hours per day. For work that could be hazardous to an employee's health, the limit is 7 hours per day and 42 hours per week.

If an employee works beyond these standard hours, you must pay them overtime. Here's a breakdown of the overtime pay rates:

Public & regional holidays

Your employees are entitled to paid public holidays. Thailand has a number of national holidays each year. Here is a list of public holidays for 2025:

• January 1: New Year's Day
• February 12: Makha Bucha Day
• April 6 & 7: Chakri Memorial Day
• April 13-16: Songkran Festival
• May 1: Labour Day
• May 4 & 5: Coronation Day
• May 11 & 12: Visakha Bucha Day
• June 2: Bridge Day
• June 3: Queen Suthida's Birthday
• July 10: Asarnha Bucha Day
• July 11: Khao Phansa Day
• July 28: King Vajiralongkorn's Birthday
• August 11 & 12: The Queen Mother's Birthday
• October 13: King Bhumibol Adulyadej Memorial Day
• October 23: Chulalongkorn Memorial Day
• December 5: King Bhumibol Adulyadej's Birthday
• December 10: Constitution Day
• December 31: New Year's Eve

Hiring contractors in Thailand

You can also hire independent contractors in Thailand. This can be a flexible option for project-based work. However, you need to be careful about how you classify workers.

An independent contractor should have control over their own work schedule and methods. They are also responsible for their own taxes and social security contributions.

The risk is that if the relationship with a contractor looks too much like a regular employment relationship, the Thai authorities could reclassify them as an employee. This is known as misclassification. If a worker is misclassified, you could face penalties, including fines and back payments for social security and other benefits.

An Employer of Record (EOR) can help you avoid these risks. An EOR legally employs workers on your behalf, taking care of all the local employment responsibilities. This includes managing compliant contracts, payroll, taxes, and benefits. Using an EOR ensures you comply with Thai labor laws and reduces the risk of misclassification when you want to engage talent in a more permanent capacity.

Paying your team in Thailand accurately and on time is crucial. It helps you keep great people and stay on the right side of the law. Thailand's labor laws are designed to protect employees, so understanding your obligations is the first step to building a strong team in the country.

Payroll cycles & wage structure

In Thailand, you typically pay employees once a month. The exact pay date is something you and your employee agree upon. You must provide a payslip for each pay period, which can be a physical copy or an electronic one. This document needs to show the gross salary, all deductions, and the final net pay. Keep in mind that a 13th-month salary is not a legal requirement in Thailand.

Overtime & minimums

The standard workweek in Thailand is 48 hours, with a maximum of 8 hours per day. Anything beyond these hours is considered overtime, and your employee must agree to work it. Overtime can't exceed 36 hours per week.

Here’s how you calculate overtime pay:

• Regular workdays: 1.5 times the normal hourly rate.
• Holidays: 2 times the normal hourly rate.

Minimum wage in Thailand varies by province. As of January 1, 2024, the daily minimum wage rates range from THB 330 to THB 370.

Employer taxes and contributions

As an employer, you are responsible for contributing to social security on behalf of your employees. These contributions cover benefits like healthcare, disability, and unemployment.

You must submit these payments to the Social Security Office (SSO) by the 15th of the following month.

Employee taxes and deductions

Your employees also contribute to the Social Security Fund and pay personal income tax. You will withhold these amounts from their salary.

Personal income tax in Thailand is progressive, meaning the rate increases with income.

Understanding benefits and leave in Thailand is straightforward. The law provides a solid foundation of protections for employees. Many companies also offer extra benefits to attract and keep the best talent. This approach ensures you can build a competitive benefits package for your team in Thailand.

Statutory leave

Thai law requires employers to provide several types of leave. These are the minimums you must offer.

• Annual Leave: Employees get at least six days of paid annual leave after completing one year of work. Many companies offer 10 to 15 days to stay competitive.
• Sick Leave: Employees are entitled to 30 days of paid sick leave per year. If an employee is sick for more than three days, you can ask for a doctor's note.
• Maternity Leave: An expecting mother can take 98 days of maternity leave. The first 45 days are paid by the employer, and the remaining days are covered by the Social Security Fund.
• Other Leave Types: The law also provides for other specific types of leave. This includes leave for military service and monkhood for Buddhist men.

Public holidays & regional holidays

Thailand has a number of national holidays each year. You must provide at least 13 paid public holidays. Below are the public holidays for 2025.

Typical supplemental benefits

To build a competitive offer, you should know the difference between required and optional benefits.

How an EOR can help with setting up benefits

An Employer of Record (EOR) simplifies hiring and managing employees in Thailand. They act as the legal employer for your team. This means they handle all the administrative and legal tasks for you.

An EOR helps you:

• Stay Compliant: An EOR ensures your benefits packages meet all of Thailand's legal requirements. This protects you from fines and other penalties.
• Offer Competitive Benefits: They have local market knowledge and can help you create a benefits package that attracts top talent. This includes popular options like a provident fund.
• Manage Administration: An EOR handles the complex administration of benefits. This includes enrolling employees in social security, managing leave balances, and processing payroll contributions.
• Onboard Quickly: They can get your new hires set up with all their benefits from day one. For foreign employees, an EOR can also manage the visa and work permit process.

Using an EOR lets you focus on your business goals. You can be confident that your team in Thailand is well taken care of.

Let's talk about ending employment in Thailand. The process is straightforward, but you need to follow the rules. Thai labor law protects employees, so it's important to handle termination and offboarding correctly. This means giving proper notice and paying severance when it's due. If you don't, you could face legal issues.

Notice periods

When you decide to terminate an employee without cause, you must give them advance notice. The law requires you to provide at least one full pay period of notice. This is typically 30 days.

You must give this notice in writing. The notice period becomes effective on the next pay date after you've given the notice. For example, if you pay your employee at the end of the month and want to terminate them on June 30th, you need to give them notice by May 31st.

If you need to end the contract immediately, you can. In that case, you pay the employee in lieu of the notice period.

Severance pay

Employees who have worked for you for at least 120 days are entitled to severance pay if you terminate them without cause. You do not need to pay severance if you terminate an employee for specific reasons, such as dishonesty or intentionally causing damage to your business.

The amount of severance pay depends on how long the employee has worked for your company. The payments are calculated based on the employee's most recent salary.

Here is a breakdown of the severance pay rates:

How Rivermate handles compliant exits

When you partner with us, we manage the entire offboarding process for you. We make sure every termination is fully compliant with Thai labor laws.

Here’s how we handle it:

• Documentation: We prepare and issue all the necessary legal documents, including the written termination notice.
• Calculations: We calculate the correct final payment, including severance pay, payment for unused vacation days, and any other outstanding wages.
• Communication: We guide you on how to communicate the termination to your employee, ensuring a smooth and professional process.
• Final Steps: We take care of the final administrative tasks, like issuing the withholding tax certificate and closing the provident fund if applicable.

Working with us removes the guesswork. You can be confident that every step of the offboarding process is handled correctly, protecting you from legal risks and ensuring a fair process for your employee.

Getting the right visas and work permits in Thailand is essential. The process can be complex, so it's important to understand the requirements. Generally, you need a Non-Immigrant visa to enter Thailand for work. Once you are in the country, your employer can then apply for a work permit on your behalf.

Employment visas & sponsorship realities

An Employer of Record (EOR) can be a practical way to handle employment visas in Thailand. An EOR can legally employ staff in Thailand for you, which means you don't need to set up your own local company.

Here's what an EOR can typically do:

• Sponsor Work Permits: An EOR can sponsor the necessary work permits for your employees.
• Handle Visa Applications: They can manage the entire visa application process.
• Ensure Compliance: An EOR stays up-to-date with Thailand's immigration and employment laws, which change often.

However, there can be limitations. For example, some EOR services may be affected by visa quotas that Thailand has in place.

The most common route for employment is to secure a Non-Immigrant "B" visa. This visa is for business and work purposes. Your EOR will typically guide you through the specific requirements for this visa.

Business travel compliance

For short-term business visits, the rules are more straightforward.

• Visa Exemptions: Nationals from many countries can enter Thailand for up to 60 days for business purposes without a visa. This can often be extended for another 30 days.
• Work Permit Still Needed: Even with a visa exemption, a work permit is required for any work-related activities.
• Required Documents: When you arrive, you may need to show documents like an invitation letter from a Thai company.

For any business activities beyond short meetings or seminars, you will likely need a Non-Immigrant "B" visa. It's best to check the specific requirements for your nationality before you travel.