How to hire remote employees in

Thailand

In recent years, Thailand has become a hotspot for remote talent, with both immigrants and locals creating a talented pool to hire from. But, if you’re not acquainted with local labor laws, it can get confusing. We are acquainted with those laws, and we’re here to help. On this page, we’ll teach you how to hire in Thailand—without spending thousands of dollars on EOR fees and legal red tape:

Country snapshot

CURRENCY
Thai Bhat (THB)
EMPLOYER TAXES
5.2%-6.00%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Thai

What to know before you hire in 

Thailand

Laws about hiring are complicated, and the same is true in Thailand. But there are ways to sidestep the headaches—if your company hasn’t already established a physical presence in Thailand, you have two real options when it comes to hiring. We’ll detail both below.

If you want to successfully hire in 

Thailand

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Thailand

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Thailand

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Thailand

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Thailand

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Thailand

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Thailand

?

If you’re hiring contractors in 

Thailand

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Thailand

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Thailand

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Thailand than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Thailand.

Taxes in 

Thailand

Employer tax

Employer Contributions

  • 5.2%-6.00%

Individual tax

Leave

Paid Time Off (PTO)

An employee who has worked continuously for one full year is entitled to an annual holiday of 6 days per year. If the employee works for less than one year, his or her annual leave is prorated. Sometimes, employers voluntarily give more than 6 days of annual leave to employees. If employees do not use their annual leave holiday within a year, it is carried over to the next year and added to the next year’s annual leave. Yet some employers refuse to carry unused annual leave to the next year, annulling it when the year to which it belongs ends.

Public Holidays

16 public holidays. 

Sick Days

Employees are eligible to take up to 30 days of paid sick leave per year. If the employee is absent for more than 3 consecutive days, the employer can ask for a doctor’s note verifying the illness.   

Maternity Leave

Employed expectant mothers are granted a minimum of 98 days of maternity leave. 45 days out of these 98 days are paid. Whether the remaining days are paid for or not depends on the employer’s agreement with the pregnant employee. 

Paternity Leave

The rights enjoyed by fathers of newborn babies vary depending on the sector in which they work. Fathers working in the private sector receive no paternity leave. The public sector, by contrast, gives fathers 15 days of paternity leave to take care of their newborn babies.   

Parental Leave

No statutory regulation.

Other Leave

Work-related injury leave: If  the employee needs to receive medical treatment due to work-related injury or occupational disease, his or her work-related injury leave should not exceed more than 12 months. In case of serious injury or special circumstances, the work-related injury leave may be appropriately extended upon the confirmation by the municipal labor ability certifying committee. 

The extension shall not exceed 12 months. Injured employees are paid 100% of their daily wages while they receive the required medical treatment. Employers bear the full brunt of payments for employees’ injury compensation. 

Termination

Termination Process

When employers want to discharge the employee, they are required to give them one month’s notice in advance of termination. Yet in those cases when employees are discharged for a reason connected with their behavior or performance, employers are not expected to warn them in advance. Among these reasons are the following:  

  • Dishonesty at the workplace or criminal offense against the employer. 
  • Harming the employer intentionally;  
  • Violating work rules or orders, provided a written warning has already been issued. 
  • Neglecting duties and, in so doing, causing harm to the employer. 
  • Being imprisoned.   

When employees are discharged for misbehavior, they are not paid severance money either.   

If employers suspend their business temporarily for a cause other than a force majeure, they pay to the employee 50 percent of the daily wage he or she received before the suspension of the business. The payment is given to the employee for the whole period his or her services are not required.

Notice Period

The employee or employer can terminate by giving notice at or before any time of payment to take effect at the following time of payment. 30 days advanced notice is common, and some ask for a longer 2 or 3-month notice period. As a rule, the duration of the notice period is stipulated in the employment contract. 

Severance Pay

If employees are not dismissed for the reasons mentioned in the section above, they are paid severance according to the following scheme:  

Period of Employment  

Amount of Severance Pay  

More than 120 days but less than 1 year  - 30 days salary  

At least 1 year but less than 3 years  - 90 days salary  

At least 3 years but less than 6 years  - 180 days salary  

At least 6 years but less than 10 years  - 240 days salary  

10 years  but less than 20 years - 300 days salary  

20 years or more - 400 days salary 

Employees working for less than 120 days for the same employer are not eligible to receive the severance payment. Other employees who do not qualify for severance payment are those who are hired for a fixed duration. As specified in the Labour Protection Act, these employees must have a written contract of no more than 2 years duration. To receive such a contract, employees usually do a special project, not in the normal course of the employer’s business. Or it must be temporary or seasonal employment.   

When the employer announces termination and requires employees to work until the end of the following month, employees can find other employment and resign before the specified date. If this is the case, employers do not pay severance pay to the resigned employee.

Probation Period

Not required, however, Thai law does specify severance pay for employees who have worked for 120 days or more and are terminated without cause. As a result, to avoid paying severance, many employers in Thailand set probation periods of up to 119 days.

Employee requirements in 

Thailand

Working Hours

The maximum number of work hours is 8 per day, with a total of 48 hours weekly. Employees performing hazardous tasks work 7 hours per day and 42 hours weekly.   

A 1-hour rest period during a working day is given to employees. They can break their rest period into parts, the minimum time being 20 minutes and the longest time being an hour. If the employee is engaged in such work where stoppages may damage its production or quality, the employer may request the former to work without breaks. The employee’s consent is required in this case.     

Overtime

An employee must consent to overtime and cannot exceed 36 weekly. Employees working overtime are entitled to overtime pay. Overtime pay is 150% their normal rate or 200% the rate for work on holidays.

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