Payroll Guides

Payroll Guide: Thailand

Published on 17 Mar 2023

Entrust your Thailand payroll with Asia Pacific's Award-Winning Payroll and HRMS provider

OS HRS takes care of your multi-country payroll with local regulatory expertise. From Thailand, across Asia Pacific and beyond, we are the payroll partner of global leaders. Not sure where to start when it comes to multi-country payroll? Here’s our quick payroll guide for your Thailand business operations.

Overview of payroll in Thailand

Currency  

THB 

Payroll cycle 

Monthly 

Employer taxes  

5% - 6% 

Minimum wage 

313 THB – 336 THB depending on region 

Working hours  

48 hours a week, 8 hours a day 

What are the steps to set up payroll in Thailand?

Payroll in Thailand involves a number of compliance requirements, including the calculation and withholding of taxes, social security contributions, and other deductions. Here are the steps to set up payroll in Thailand:

  1. Register your company with the Thai Revenue Department: Before you can start paying employees, you must register your company with the Thai Revenue Department. You will receive a Tax ID number, which is required for payroll processing.

  2. Obtain work permits and visas for foreign employees: If you plan to hire foreign employees, you will need to obtain work permits and visas for them. This process can take some time, so it's important to start early.

  3. Determine your payroll schedule: In Thailand, employers are required to pay employees at least once a month. You can choose to pay more frequently if you wish, but you cannot pay less frequently than once a month.

  4. Set up a payroll system: You will need to set up a payroll system to manage your employee records, calculate payroll taxes, and issue paychecks. There are many software programs available for this purpose, or you can hire an accounting firm to handle your payroll.

  5. Determine employee compensation and benefits: You will need to determine employee compensation and benefits, including salaries, bonuses, and benefits such as health insurance and retirement plans.

  6. Calculate payroll taxes: You will need to calculate payroll taxes, which include social security contributions, personal income tax, and other taxes. These taxes are typically withheld from employee paychecks and paid to the government on their behalf.

  7. Issue paychecks: Once you have calculated employee pay and payroll taxes, you can issue paychecks to your employees. You can choose to issue physical checks or use electronic payment methods such as direct deposit.

  8. Maintain payroll records: It's important to maintain accurate payroll records, including employee information, payroll calculations, and tax filings. You should keep these records for at least five years.

  9. Comply with labor laws: Finally, it's important to comply with Thai labor laws, which include minimum wage requirements, working hours, and employee leave. You should stay up-to-date on any changes to these laws to ensure that you are in compliance.

What do you need to know about Thailand Payroll?

Employer Contributions in Thailand

What do you as an employer need to make in employer contributions?

3.00%

Pension

1.50%

Health Insurance

0.50%

Unemployment

0.20%-1.00%

Work Injury

5.20% – 6.00%

Total Employment Contribution

Employee Contributions in Thailand

What do your employees need to set aside in contributions?

3.00%

Pension

1.50%

Health Insurance

0.50%

Unemployment

5.00%

Total Employee Contribution

Employee Income Taxes in Thailand

What are the income tax rates in Thailand?

0.00%

0 to 150,000 THB

5.00%

150,001 to 300,000 THB

10.00%

300,001 to 500,000 THB

15.00%

500,001 – 750,000 THB

20.00%

750,001 – 1,000,000 THB

25.00%

1,000,001 – 2,000,000 THB

30.00%

2,000,001 – 5,000,000 THB

35.00%

5,000,001 THB and above

Why trust OS HRS with your multi-country payroll?

Integrate your multi-country payroll processes

Automate your multi-country payroll across Asia Pacific, and beyond

Dedicated multi-country payroll compliance

Reach out to OS HRS for a discovery call today!

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Last updated March 2023

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