Thailand is a south-east Asian country that borders Laos, Cambodia, Malaysia, and Myanmar. Located wholly within the tropics, Thailand encompasses diverse ecosystems, including the hilly forested areas of the northern frontier, the fertile rice fields of the central plains, the broad plateau of the northeast, and the rugged coasts along the narrow southern peninsula. The country’s main industries are tourism, agriculture, exports, and electronics.

Capital :
Bangkok (Krung Thep Maha Nakhon)
Currency :
Baht (THB, ฿)
Languages spoken :
Thai
Population :
66.17 million (2021 est.)
Minimum wage 2022 :
THB 328-354 Daily, as per province
Cost of Living index :
$$ (75 of 139 countries)
Payroll Frequency :
Monthly
VAT - standard rate :
7%
GDP - real growth rate :
1.6% (2021 est.)

Statutory Holidays

The Public holidays are generally days of celebration like Coronation Day, the King’s Birthday, or Constitution Day. Some public holidays are established as religious celebrations like Visakha Bucha or Buddhist Lent Day. Employees in Thailand are entitled to at least one day off per week and a minimum of 13 public holidays per year must be granted. 

The national holidays mentioned below are valid for the year 2022.

Date
Holiday Name
Extra Information
January 1-3
New Year’s Holidays
February 16
Makha Bucha Day
Movable - As per Buddhist Lunar Calendar
April 6
Chakri Day
April 13-15
Songkran Festival
May 1-2
Labor Day
May 4
Coronation of King Vajiralongkorn
May 15-16
Visakha Bucha Day
Movable - As per Buddhist Lunar Calendar
June 3
Queen Suthida’s birthday
July 13
Asahna Bucha Day
Movable - As per Buddhist Lunar Calendar
July 28-29
King Vajiralongkorn's Birthday
August 12
Queen Mother Sirikit's Birthday
October 13-14
Passing of His Majesty King Bhumibol Adulyadej
October 23-24
Chulalongkorn Memorial Day
December 5
Late King Bhumibol Adulyadej’s Birthday
December 10-12
Constitution Day
December 31
New Year’s Eve

Contract Sharing Time


The approximate time for sharing the contract with an employee in Thailand is 6 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

What You Need To Know


  • There is no specific legislation for remote work in Thailand.
  • Though there is no statutory period for probation, most employers tend to set it as 119 days or less as the law prescribes a severance pay after 120 days.

Labor Conditions


Working Hours

Where the employer may not notify the commencing and ending time of daily work due to the nature or conditions of work, the working hours in each day should not exceed eight hours and the total working hours per week should not exceed 48 hours.

 

Overtime

Overtime working hours and working hours on holidays should, in aggregate, not exceed 36 hours per week in aggregate. Where the employer and the employee agree to make up the remaining hours on other normal working days and the total working hours exceed eight hours per day, the employer should pay remuneration to the daily employee and the hourly employee at a rate of no less than one and a half times of the hourly wage rate on a working day for a number of exceeding working hours. 

 Probation Period

There is no mandatory minimum probationary period in Thailand. Most employers tend to set the probationary period as 119 days or less because the probationary employee’s employment can be terminated within the probationary period of 119 days without any severance pay.

 

Termination Notice Period

A contract of employment expires upon the completion of the period specified in the contract of employment with no requirement for advance notice. Where the period is not specified in the contract of employment, an employer or an employee may terminate the contract by giving advance notice in writing to the other party at or before any due date of wage payment in order to take effect on the following due date of wage payment, with no requirement for advance notice of more than three months. The employer should give written notice to the employee and the Labor Inspector in advance prior to the date of suspension of business for not less than three working days. 

Leave / Time Off

Annual Leave

An employee who has worked for an uninterrupted period of one year is entitled to annual holidays of not less than six working days in one year, and the employer is obliged to fix the holiday in advance for the employee or as agreed by the employer and employee. In the following year, the employer may fix annual holidays for the employee of more than six working days. 

Sick Leave

An employee is entitled to sick leave as long as they are actually sick. For sick leave of three days or more, the employer may require the employee to produce a certificate from a first-class physician or an official medical establishment. An employer should pay wages to an employee for sick leave equivalent to wages of a working day throughout the leave period, but not exceeding 30 working days per year.

Parental Leave

Maternity Leave

A female employee who is pregnant is entitled to maternity leave of not more than 98 days for each pregnancy. The days of the maternity leave include days of the check-up and leave during maternity leave. An employer should pay wages to a female employee for maternity leave equivalent to wages of a working day throughout the leave period, but not exceeding 45 days per year.

 

Paternity Leave

There is no paid paternity leave for employees in the private sector.

 

Adoption Leave

There is no paid adoption leave for employees in the private sector.

Other Types of Paid Leave

The following types of employer-paid leave are provided for in the Labor Protection Act:

LeaveDuration
SterilizationPeriod determined with a certificate issued by a first-class physician 
Leave for necessary businessAs per workplace rules but no less than 3 working days annually 
Leave for military serviceNot declared 
Leave for training or the development of their knowledge and skills*As prescribed in the Ministerial Regulations 

*The employer may deny training leave if the employee has already taken such leave for 30 days or more or on three or more prior occasions or if granting such leave would adversely affect the employer’s business operations.

Unpaid Leave

There is no specific provision in law for unpaid leave.

Statutory Benefits

The Social Security Act is used to finance compensation paid to employees in the event of maternity, death, unemployment, accident, illness, and physical incapacity occurring outside the workplace.

The total monthly social security contribution rate is 12.5% of the salary (10% portion is equally shared between employee and employer making the amount of contribution for each 5%). The contribution finances the following benefits:

CategoryEmployer Contribution
Pension and child allowance3%
Health insurance (including disability, maternity, and death benefits)1.5%
Unemployment insurance0.5%
Workmen’s Compensation*0.2-1%

*Varies as per nature of business.

Health Insurance

An insured person is entitled to compensation benefits for a non-occupational disability provided they have paid contributions for not less than three months within the period of 15 months prior to becoming disabled as certified by the Medical Committee. These benefits include:

  • Medical examination and diagnosis expenses;
  • Health promotion and disease prevention expenses;
  • Medical treatment expenses and rehabilitation expenses;
  • Expenses for admission to and treatment in medical establishments;
  • Medicine and medical supplies expenses.

Other Insurances

Accident Insurance

Workmen’s Compensation Fund (WCF) was set up to replace the employer’s liability and to give prompt and equitable protection against injury, disease, disability, or death resulting from employment. It is the employer’s liability to pay a contribution solely to the WCF per year like an insurance premium. The contribution rate varies from 0.2 – 1.0% of wages based on the risk rating of the establishment type classified by industrial classification. The rate is used for the first four years of contribution. In the fifth year, the employer’s rate of contributions may increase or decrease depending upon the accident record of their business. 

Unemployment Insurance

An insured person is entitled to unemployment benefits on or after the eighth day from the date of becoming unemployed with the last employer. An employee who is an insured person is entitled to compensation benefits in case of unemployment provided that they have paid contributions for not less than six months within a period of 15 months prior to unemployment and meets certain specified conditions.

Public Pension

Thailand offers the national Pension Fund and Provident Fund for employees. An insured person is entitled to an old-age pension provided that they are 55 years of age or older and have paid contributions for not less than 180 months, irrespective of whether the period is consecutive or not. 

Companies with 100 employees or more are required to arrange for employee contributions to a Provident Fund. The employee pay their savings into the fund through the employer’s deduction from wages, and the employer pays the contribution into the fund at the rate of not  less than 2% but not more than 15% of the wages. 

Disclaimer

The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

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