Payroll compliance in Thailand
Thailand has a mixed economic system, with centralised economic planning and government regulation. The country features well-defined investment policies, and actively encourages free trade and foreign investment through tax incentives, support services and import duty exemptions.
Thailand ranks 49th for the complexity of its business environment, according to TMF Group’s 2022 Global Business Complexity Index, making it one of the easier countries to do business in.
Thailand’s labour laws are enshrined in the Civil Commercial Code, Labour Protection Act and Labour Relationship Act, together covering employment contracts, employee rights and benefits and the fairness of employment relationships.
Every employer in Thailand must register for the Social Security Fund, and employers and employees each contribute 5% of gross monthly salary towards social security (up to a maximum of THB750).
Companies that already have 10 foreign employees must have approval from Thailand’s Board of Investments (BOI) to hire more; approval may be granted on the basis of a number of different factors, including the company’s corporate income tax contributions, level of export earnings, or contribution to tourism, for example.
If you’re doing business in Thailand and are looking to learn more about Thailand’s labour laws, incorporation procedures, tax implications and compliance requirements, request a copy of our full country profile, Doing business in Thailand.
