How to Hire Employees in Thailand 

With an estimated workforce of 40 million, Thailand is one of the global hotspots for global hiring. The country, which is otherwise known for its tourism, also offers highly skilled, well-educated talent at a competitive cost compared to Western countries.  

Global companies, from SaaS startups to manufacturing giants, are turning to Thailand for its deep base of STEM graduates, growing freelance talent, and cost-effective infrastructure. It’s also emerging as a hub for Global Capability Centers (GCCs), thanks to government-backed digital economy initiatives and its expanding network coverage.

But to hire employees in Thailand isn’t as simple as posting a job. Without a local entity, you’re up against legal landmines, tax rules, and visa red tape.

That’s where this guide will help. Here, we will walk you through:

• What foreign employers need to know about hiring legally in Thailand
• Your hiring options: entity setup, local HR vendors, or an Employer of Record (EOR)
• Why Tarmack’s EOR model is the fastest, easiest way to hire in Thailand

Can Foreign Companies Hire Employees in Thailand?

The short answer is no. Foreign companies without a legal entity in Thailand cannot directly hire Thai employees.

Thai labor laws require employers to be locally registered to stay compliant with labor, tax, and social security regulations.

Why? Because employer registration ensures full accountability from tax withholding to social contributions and statutory benefits. These aren’t optional. Trying to bypass them by misclassifying employees as contractors often backfires, leading to legal scrutiny, fines, and backdated liabilities if the working relationship resembles full-time employment.

While setting up a Thai entity is possible, it’s slow, expensive, and rarely worth it for just a few hires.

That’s why many companies turn to Employer of Record (EOR) to hire international employees quickly and without setting up a local company.

But, before that let’s take a crack at understanding Thailand’s local employment laws so you know what an EOR handles for you.

Thai Employment Laws You Must Know (and Stay Compliant With) in 2025

Thailand’s employment laws have become stringent in 2025. The compliance bar has been set higher than before and its enforcement is also strictly followed. 

Major revisions include higher minimum wages across provinces, a new welfare fund, and tighter employee classification.

Here’s what you must know before onboarding Thai talent.

1. Employment contracts

Experts strongly recommend written contracts for legal protection and clarity of engagement, while they are not legally mandatory. 

As an employer, you may offer fixed-term or indefinite contracts, and should ideally draft them in Thai or as bilingual (Thai-English) documents to ensure proper communication of terms and to avoid any possible disputes.

Compliance Tip: Clearly define probation in the contract and keep it under 119 days. If you fire someone after that, you must pay severance, no matter the role or reason.

2. Minimum wage and working hours

Minimum wage in Thailand is reviewed regularly and varies by province, as mentioned under

Standard working hours are capped at 8 hours per day or 48 hours per week. Also, Thai labor law mandates that employers pay overtime compensation for additional hours worked, which is:

• 1.5x base rate for regular overtime
• 2x for public holidays
• 3x for OT worked on public holidays

As for paying international employees, the same rules apply, however, the manner of payments can be decided based on a mutual agreement with the employee. 

Non-compliance penalties: Employers failing to observe the minimum wages and working hours may have to shell out fines of up to THB 100,000 per violation of underpayment. (Benoit & Partners)

3. Termination and severance

Termination in Thailand is a legally sensitive process.  Employers must handle terminations carefully to avoid employee disputes,  legal penalties, or reputational damage.

Severance pay structure (2025):

New Rule: Employee Welfare Fund (EWF) starts Oct 2025

Employers with 10+ employees, and employees must contribute 0.25% of wages (rising to 0.5% by 2030) to a new national welfare fund. On termination, employees can withdraw this money.

If you already offer a qualified provident fund, your employees may be exempt

4. Public holidays and leave

Thailand observes 13-19 public holidays annually, with the number slightly varying by year based on government declarations. Employees are also entitled to statutory leaves and benefits such as: 

 As a Thai employer, you must maintain accurate leave records for every employee. Failing to do so can trigger compliance penalties during audits.

Luckily, a local Employee of Record like Tarmack takes full responsibility for aligning every hire with Thai labor laws, helping you stay 100% compliant while avoiding penalties or missteps that could cost thousands.

Navigating the Complex Web of Taxes, Payroll, and Social Security in Thailand

Thailand is a wonderland for tourism, but when it comes to managing taxes, payroll and social security from an employer perspective, things can get complicated. 

Of course, tax and payroll obligations fall both on employers and employees. 

Personal income tax

Employees in Thailand are subject to progressive income tax rates, ranging from 5% to 35% depending on earnings. As an employer, you are responsible for:

• Ensuring every employee has a Thai Tax ID number

• Withholding the correct tax amount each month
• Remitting payments to the Revenue Department by:
  • 7th of the following month (if paying at a physical office)
  • 15th (if filing electronically)

Note: If you’re hiring foreign employees, they’re taxed only on income earned in Thailand, and fall under the same tax brackets.

Social security – employer contributions

Employers must contribute to the Social Security Fund (SSF), currently 5% of the employee’s salary, capped at a monthly wage of THB 15,000. 

Remember, failing to register employees with the Social Security Office (SSO) can result in penalties of up to THB 20,000 or imprisonment up to 6 months. Audits are common, and non-compliance is taken seriously.

In some cases, companies may also offer contributions to a provident fund, though this is optional and more common among large employers.

Payroll reporting and deadlines

Payroll in Thailand must be processed on a monthly basis, with income tax and social security filings submitted to local authorities on time. Further, you’re also responsible to:

• Submit PND1 form (monthly personal income tax return) to the Revenue Department.
• File SSO Form 1-10 to the Social Security Office for all active employees.
• Use Thai Baht for payments. Local bank accounts are required to process tax and social security remittances.

Managing payroll and social security filings in Thailand, no matter how big or small the team is undeniably challenging. It is here that an EOR service like Tarmack can make a difference. 

Work Permit and Visa Requirements in Thailand

Any foreign national who “works” in Thailand must hold a Non-Immigrant “B” (Business) or other eligible visa and a Thai work permit issued by the Department of Employment (DOE). 

However, there are certain exemptions to this, such as:

• SMART Visa holders
• Long-Term Resident (LTR) visa holders
• Visitors for short business meetings spanning 15 days or less

Can an EOR sponsor expats?

Yes. An EOR can help with legal formalities required to hire employees in Thailand such as:

• Securing the WP-3 pre-approval letter and filing visa & work-permit paperwork with the DOE (Department of Employment)
• Maintaining the Thai-to-foreign staff ratio and capital requirements on your behalf
• Providing monthly payroll, tax, and social-security records

Ultimately, you keep day-to-day control of the employee, while Tarmack becomes the legal employer of record and shoulders all immigration compliance.

Why Tarmack Is Your Best EOR Partner in Thailand

When expanding into a new market, choosing a reliable EOR partner like Tarmack can make all the difference. Tarmack is built for companies that want to move fast, stay compliant, and scale with confidence, all without the overhead of setting up a local entity.

Trusted by global businesses

Tarmack supports startups, scale-ups, and established enterprises in building distributed teams across Asia. Companies trust us to manage local compliance while they focus on growth.

Transparent, flat-rate pricing

No hidden fees. No percentage markups. With Tarmack, you get a simple monthly rate per employee that covers everything, from contracts, payroll, tax filings, to benefits, and compliance.

Full-service compliance

We handle every part of the employment lifecycle:

• Legally compliant contracts
• Monthly payroll and tax withholdings
• Social security contributions
• Leave management and statutory benefits
• Offboarding and severance

You stay in control of day-to-day management, while we handle the legal and administrative responsibilities in Thailand.

Local support, global reach

Tarmack offers dedicated local HR and legal experts in Thailand who understand the nuances of Thai labor law. At the same time, our global platform ensures consistency across multiple markets if you’re hiring beyond Thailand.

Ready to Hire Employees in Thailand the Easy Way?

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