Thailand Payroll Guide: Social Security, PIT, and Provident Fund (2026)

Thailand's payroll system involves two mandatory components: Social Security contributions (5% employer, 5% employee, capped at THB 15,000 salary) and personal income tax withholding using graduated rates from 5% to 35%. Provident Fund contributions are voluntary. Thailand has the lowest mandatory employer payroll costs in Southeast Asia, making it cost-efficient for foreign companies.

What Are the Social Security Contribution Rates in Thailand?

Social Security covers 7 benefits: sickness, maternity, disability, death, child allowance, old age pension, and unemployment. Benefits are accessed through government hospitals and registered private hospitals. Old age pension requires 180 months (15 years) of contributions. Unemployment benefit: 50% of daily wage for up to 180 days (involuntary) or 30% for up to 90 days (voluntary resignation).

Social Security contributions are submitted by the 15th of the following month through the SSO e-Service portal. Late payment: 2% monthly interest. Failure to register: fine up to THB 20,000 and/or imprisonment up to 6 months. The EOR manages all SSO submissions and compliance.

How Does Personal Income Tax (PIT) Withholding Work?

Personal allowances: single person THB 60,000, spouse THB 60,000, each child THB 30,000 (60,000 for children born 2018+), Social Security contributions (actual, up to cap), and life insurance premiums (up to THB 100,000). The employer withholds monthly PIT using Form PND.1, filed by the 7th of the following month. Annual Form PND.91 is filed by employees.

What Is the Provident Fund in Thailand?

The Provident Fund is a voluntary retirement savings scheme. Both employer and employee contribute 2-15% of salary. The contribution rate must be equal (if the employer contributes 5%, the employee contributes 5%). The fund is managed by a licensed fund manager selected by the company. Employer contributions and investment returns are tax-exempt for the employee upon withdrawal after qualifying conditions.

Approximately 20-25% of Thai private sector employers offer Provident Fund. It is a competitive benefit for attracting talent. Employees vest in employer contributions over time (typically 3-5 year vesting schedule). Aniday's EOR can set up Provident Fund participation for client employees at the client's request.

What Are the Payroll Filing Deadlines in Thailand?

What Other Payroll Considerations Exist in Thailand?

Thailand uses a monthly payroll cycle. Payment must be made on the agreed date: most companies pay on the 25th-last day of the month. Overtime rates: 1.5x for regular day overtime, 3x for holiday work overtime. Night shift premium is not mandatory under the LPA. Annual leave is paid at the normal rate. Unused leave at year-end can be carried over by agreement or paid out.

Thailand has 13+ traditional holidays designated as public holidays per year. Some holidays are specific to banking/government. Employers must provide at least 13 paid holidays per year from the government's list. If a holiday falls on a weekly rest day, the next working day is a substitute holiday. Employees working on holidays receive double pay for the first 8 hours.

Does Thailand have payroll tax beyond Social Security?

No. Social Security (5%) and Workmen's Compensation (0.2-1%) are the only mandatory employer payroll contributions. There is no EPF, health insurance levy, or unemployment insurance beyond Social Security. Thailand's low mandatory contributions (total ~5.5%) are the lowest in ASEAN. The employer's role in PIT is as withholding agent only: no employer tax cost.

Are bonuses subject to Social Security in Thailand?

Yes. Social Security contributions are calculated on total remuneration, including bonuses. The salary cap of THB 15,000/month limits the impact. If the employee's regular salary already exceeds THB 15,000/month, the bonus does not increase Social Security contributions. PIT applies to bonuses as part of annual taxable income.

How is overtime calculated in Thailand?

Overtime rates under the LPA: regular workday overtime: 1.5x hourly rate. Work on a holiday (first 8 hours, if normally required): 1x additional. Holiday overtime (beyond 8 hours): 3x hourly rate. Work on a rest day: 1x additional for first 8 hours, 3x for overtime hours. The hourly rate = monthly salary ÷ 30 ÷ working hours per day (typically 8).

What happens to Social Security upon employee termination?

The employer stops Social Security contributions from the month following termination. The employee can continue contributing voluntarily under Section 39 (within 6 months of leaving employment) to maintain benefit eligibility. Unemployment benefits: 50% of daily wage for up to 180 days (employer-initiated termination) or 30% for up to 90 days (resignation). Minimum 6 months of contributions in the prior 15 months required.

Is the Provident Fund mandatory in Thailand?

No. The Provident Fund is voluntary. The employer chooses whether to offer it. Once established, both employer and employee contribute the same rate (2-15%). The fund is tax-advantaged: employer contributions are tax-deductible for the company, and employee contributions up to THB 500,000/year are tax-deductible. It is a competitive benefit but not legally required.

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