How to Hire in Thailand: Complete Employer Guide (2026)

Thailand has a workforce of 39.5 million with an unemployment rate of 1.1% (Q3 2025). The Labor Protection Act B.E. 2541 (1998, amended) governs employment relationships. Employers must register with the Social Security Office, comply with minimum wage requirements by province, and follow the 4:1 Thai-to-foreign worker ratio for work permit eligibility. Thailand is Southeast Asia's second-largest economy.

What Are the Steps to Hire an Employee in Thailand?

Hiring in Thailand follows seven steps. Step 1: Register the company with the Social Security Office (SSO) if not already registered. Step 2: Define the role and recruitment requirements. Step 3: Recruit and interview candidates. Step 4: Issue an offer letter and employment contract. Step 5: Register the employee with SSO within 30 days. Step 6: Apply for work permit if the candidate is foreign. Step 7: Begin payroll.

Local hires: 5-10 business days from offer to start. Foreign hires: 4-8 weeks additional for work permit (WP) and visa processing. The employer must maintain a 4:1 ratio (4 Thai employees for each foreign worker) to sponsor work permits. Companies without a Thai entity can use EOR services to hire immediately.

What Employment Laws Apply in Thailand?

The Labor Protection Act B.E. 2541 (LPA) is the primary employment law. Key provisions: maximum 8 hours/day and 48 hours/week, minimum 13 public holidays per year, minimum 6 days annual leave after 1 year, sick leave up to 30 days/year, maternity leave 98 days. The LPA covers all employees regardless of nationality, including part-time and temporary workers.

The Social Security Act B.E. 2533 requires employer and employee contributions of 5% each (capped at THB 750/month each based on max salary of THB 15,000). The Workmen's Compensation Act covers work-related injuries. The Labor Relations Act governs unions and collective bargaining. Skill Development Promotion Act requires employers to train at least 50% of employees annually or pay a levy.

What Are the Employer Costs in Thailand?

Total mandatory employer cost: approximately 5.2-6% of gross salary (capped at THB 15,000 for Social Security). For employees above THB 15,000/month, the percentage burden is lower. A THB 50,000/month employee: SS employer THB 750 + WC ~THB 100 = THB 850/month or 1.7% above gross. Thailand has the lowest mandatory employer contributions in ASEAN.

What Are the Minimum Wages in Thailand?

Minimum wages were last updated effective October 1, 2024. The Wage Committee reviews rates annually. The monthly minimum is calculated as daily rate × 26 working days. Thailand plans to progressively raise minimum wages toward THB 400/day nationwide. Companies must pay at least the applicable provincial minimum.

What Work Permits Do Foreign Employees Need in Thailand?

Foreign workers in Thailand need both a Non-Immigrant B Visa and a Work Permit. The employer must maintain the 4:1 ratio (4 Thai employees per foreign worker). Minimum registered capital requirement: THB 2 million per foreign worker (for most business categories). The employer applies for the work permit at the Department of Employment, Ministry of Labour.

Processing time: 2-4 weeks for the work permit after visa issuance. Work permits are valid for 1-2 years. BOI (Board of Investment) promoted companies have relaxed requirements: no 4:1 ratio requirement, reduced capital requirements, and streamlined processing through the One Start One Stop (OSOS) center.

Is the 4:1 Thai-to-foreign ratio strictly enforced?

Yes. The Department of Employment verifies the ratio during work permit applications and renewals. Each foreign worker requires 4 Thai employees. BOI-promoted companies are exempt. Regional Headquarters (ROH), International Headquarters (IHQ), and Treaty of Amity companies may have relaxed ratios. Non-compliance results in work permit denial.

What is the probation period in Thailand?

The LPA allows a maximum probation period of 119 days. If probation exceeds 120 days, the employee is entitled to severance pay upon termination. Most employers set probation at 119 days to avoid triggering severance obligations. During probation, the employer can terminate with the standard notice period (payment in lieu is common). No reduced salary is permitted during probation.

Does Thailand require written employment contracts?

Written contracts are not legally required under the LPA, but they are strongly recommended. If working conditions are specified in writing by the employer (work rules/regulations), they are binding. Companies with 10+ employees must have written work rules filed with the Labor Inspector. Most foreign employers issue written bilingual contracts (Thai and English).

What is Severance Pay in Thailand?

Severance pay under the LPA: 120+ days to <1 year: 30 days wages. 1-3 years: 90 days. 3-6 years: 180 days. 6-10 years: 240 days. 10-20 years: 300 days. 20+ years: 400 days. Severance is based on the last rate of wages. No severance for: voluntary resignation, misconduct dismissal, or fixed-term contract expiration. Thailand severance is among the highest in ASEAN for long-tenured employees.

How does EOR work in Thailand?

EOR in Thailand follows the same model as other countries: the EOR's Thai entity employs the worker, handles Social Security registration, payroll, and LPA compliance. The client company directs daily work. EOR is not explicitly regulated in Thailand: it operates under standard employment law. Thailand is a growing market for employer of record servicess due to its strategic location and business-friendly environment.

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