Effortless Hiring in Thailand

Employment Contracts

• Employment contracts in Thailand must be provided in writing and include essential details such as:
• Job responsibilities.
• Salary.
• Working hours.
• Leave entitlements.
• Termination conditions.
• Types of contracts recognized include:
• Fixed-Term Contracts: Engage employees for a specified duration, not exceeding five years. These contracts must be in writing and are not subject to probationary periods.
• Indefinite-Term Contracts: Provide ongoing employment without a predetermined end date. They may include a probationary period of up to three months.

Probationary Period

• A probationary period may last up to 119 days. This duration is strategically chosen because terminating an employee without cause after 120 days necessitates severance pay.

Payroll Frequency

• Employees are typically paid on a monthly basis, with payments made on or before the last working day of each month.

Minimum Wage

• Minimum wages in Thailand vary by region, ranging from THB 330 to THB 354 as of 2023. Employers must adhere to the applicable regional minimum wage.

Overtime

• The standard workweek is 48 hours, with overtime compensated at:
• 1.5 times the regular hourly rate for normal working days.
• Between 2 to 3 times the regular rate for work performed on holidays, depending on the circumstances.
• Overtime work is limited to four hours per day and 36 hours per month.

Bonuses

• While not legally required, many employers provide annual bonuses or a 13th-month salary to enhance employee satisfaction and retention.

Employee Contributions

1. Social Security: Employees contribute approximately 5% of their monthly salary, capped at THB 750.
2. Personal Income Tax: Thailand employs a progressive tax system with rates ranging from 0% to 35% depending on income levels.

Employer Contributions

1. Social Security: Employers also contribute approximately 5% of the employee's monthly salary, capped at THB 750.

Types of Leave in Thailand

1. Annual Leave

• Employees are entitled to a minimum of 6 working days of paid annual leave after completing one year of service. Employers may offer additional days at their discretion.

2. Sick Leave

• Employees are entitled to up to 30 days of paid sick leave per year. For absences exceeding three consecutive days, employers may request a medical certificate.

3. Maternity Leave

• Female employees are entitled to 98 days of maternity leave per pregnancy (typically divided into 45 days before and 53 days after childbirth), with full pay provided by the employer during this period.

4. Paternity Leave

• Male employees are entitled to 2 days of paid paternity leave for the birth of their child or in the event of a miscarriage.

5. Other Leave

• Employees are entitled to paid leave for family events such as marriages, circumcisions, baptisms, and deaths, with durations specified by law.

6. Public Holidays

• Thailand observes between 13 to 15 public holidays annually as designated by the government. Employees are entitled to these days off with pay.

Mandatory Benefits

1. Social Security Programs: Cover health insurance, disability support, maternity benefits, and pensions.
2. Provident Fund: An optional retirement savings plan where both employer and employee contribute. The specifics are determined by mutual agreement.
3. Religious Holiday Allowance (THR): An annual bonus equivalent to one month's salary, paid prior to major religious holidays observed by the employee.

Notice Period

• Employers must provide advance notice equal to one pay period, typically 30 days, or pay in lieu of notice.

Severance Pay

• Mandatory for employees terminated without cause, based on their length of service:
• Less than 120 days: No severance pay.
• From 120 days up to less than one year: 30 days' wages.
• From one year up to less than three years: 90 days' wages.
• From three years up to less than six years: 180 days' wages.
• From six years up to less than ten years: 240 days' wages.
• More than ten years: 300 days' wages.

Unfair Dismissal

• Terminations without valid cause or due process can lead to claims of unfair dismissal, potentially resulting in additional compensation to the employee.