An Employer of Record (EOR) in Thailand employs workers through a locally registered Thai limited company on behalf of foreign companies. The EOR handles Social Security contributions, Labor Protection Act compliance, payroll withholding (PND.1), and work permit applications. Companies can hire Thai employees within 5-7 business days without establishing a local entity.
What Is the EOR Process in Thailand?
EOR onboarding in Thailand follows six steps. Step 1: Client selects a candidate. Step 2: EOR drafts an LPA-compliant employment contract (Thai and English). Step 3: Employee signs with the EOR's Thai limited company. Step 4: EOR registers the employee with the Social Security Office (SSO) within 30 days. Step 5: Payroll setup with monthly cycle and PND.1 tax withholding. Step 6: Employee starts work.
Timeline: 5-7 business days for Thai nationals. Foreign workers require Non-Immigrant B Visa + Work Permit processing (4-8 weeks). The EOR must maintain the 4:1 Thai-to-foreign worker ratio unless BOI promoted. The EOR manages all immigration documentation and Department of Employment filings.
How Much Does EOR Cost in Thailand?
Total monthly employer cost = Gross salary + ~5.5% statutory (capped) + EOR fee. For a Thai employee earning THB 50,000/month ($1,400): statutory ~THB 850 ($24) + EOR fee ~$450 = total ~$1,874/month. Thailand's low statutory contributions make it one of the most cost-efficient hiring locations in ASEAN. Entity setup costs $10,000-$25,000 with $2,000-$4,000/month maintenance.
How Does the EOR Handle Social Security in Thailand?
Social Security contributions: employer 5% and employee 5%, capped at a salary of THB 15,000/month. Maximum monthly contribution: THB 750 each (employer and employee). The Social Security Fund covers sickness, maternity, disability, death, child allowance, old age (pension), and unemployment benefits.
Registration with SSO must occur within 30 days of employment start. Contributions are submitted by the 15th of the following month. Late submission incurs a penalty of 2% per month on the outstanding amount. The EOR manages all SSO registrations, monthly filings, and benefit claims for employees.
How Does the EOR Handle Work Permits in Thailand?
The EOR's Thai entity sponsors work permits for foreign employees. Requirements: the EOR entity must have registered capital of at least THB 2 million per foreign worker, employ 4 Thai employees per foreign worker, and demonstrate that the position requires foreign expertise. BOI-promoted EOR entities may qualify for relaxed requirements.
Process: 1) Employee obtains Non-Immigrant B Visa at Thai embassy abroad. 2) EOR files WP.1 and WP.2 forms with the Department of Employment. 3) Work permit issued within 2-4 weeks of complete filing. 4) Annual work permit renewal required. The EOR handles the 90-day reporting requirement for foreign workers (TM.30 and TM.47 filings).
What Are the Key Employment Protections Under the LPA?
The EOR ensures full LPA compliance for all employees. Thailand's labor courts handle employment disputes. The EOR manages any labor complaint responses, mediation, and court proceedings on behalf of the client company.
■Related Articles
- → What Is an Employer of Record (EOR) and How Does It Work?
- How to Hire in Thailand
- Thailand Payroll Guide
- Thailand Employer Costs
- EOR Costs in SEA: Country Comparison
Ready to get started?
Related Articles
Expand your team in Thailand
Aniday handles compliance, payroll, and HR — so you can focus on growth.
Explore EOR in Thailand
Frequently Asked Questions
Is EOR common in Thailand?
EOR is growing rapidly in Thailand. The market has expanded since 2020 with remote work trends. Major EOR providers operate in Thailand. The model is not specifically regulated: it operates under standard Thai employment law. The EOR's Thai entity serves as the legal employer. No specific EOR licensing is required beyond standard business registration.
Can the EOR handle the 4:1 ratio requirement?
Yes. EOR providers manage the 4:1 ratio through their employee base. However, the ratio limits the number of foreign workers per EOR entity. EOR providers serving multiple clients must aggregate all employees for ratio calculation. Companies needing multiple foreign workers should verify the EOR's capacity to maintain the ratio.
What is the tax withholding process in Thailand?
The EOR withholds personal income tax (PIT) from employee salaries using the graduated rate schedule (5-35% on annual taxable income above THB 150,000). Monthly withholding uses Form PND.1 filed by the 7th of the following month. Annual tax return (PND.91) is filed by employees by March 31. The EOR provides withholding certificates (Section 50 bis) to employees for tax filing.
Does Thailand have mandatory bonuses?
No. Thailand has no statutory bonus requirement. Annual bonuses are discretionary and depend on company policy or contractual terms. Market practice: 1-3 months bonus for standard performers. The bonus is taxable income. Unlike Philippines (13th month) and Indonesia (THR), Thailand's bonus is entirely voluntary.
Can I hire freelancers through EOR in Thailand?
EOR is for employment relationships only. Freelancers in Thailand are governed by the Civil and Commercial Code (contract for services), not the Labor Protection Act (contract of employment). If the working relationship meets LPA employment criteria, the worker should be employed through EOR. Misclassifying an employee as a freelancer violates the LPA and Social Security Act.
