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Hiring staff in Thailand, what are the costs in 2023?
13/03/2023
Hiring new staff is crucial for any business looking to grow and expand, but it’s essential to know the costs involved before jumping in. Employers must consider various expenses and obligations in Thailand when bringing in new employees. From mandatory social security contributions to work permit fees, the costs associated with hiring staff in Thailand can add up quickly.
This blog post will examine the costs of hiring staff in Thailand.
Key points
- The minimum wage in Thailand for Thais depends on the province, and for foreigners, it depends on nationality.
- Employees who have worked continuously for one year are entitled to a minimum of six working days of annual vacation.
- Employees who work beyond their regular work hours are entitled to receive 150% of their hourly compensation.
- Foreign staff requires the correct visa and a work permit which the hiring company typically covers the cost of.
- Employees in Thailand are entitled to various leave forms of paid leave, such as sick and maternity leave.
Costs associated with Salary
What is the minimum wage in Thailand?
As of 2023, the minimum wage for employees in Thailand ranges from 354 THB to 328 THB, depending on the province.
The minimum wages per province in Thailand are as follows:
| Province | Daily minimum wage (THB) |
| Chonburi, Phuket, Rayong | 354 |
| Bangkok, Nonthaburi, Nakhon Pathom, Pathum Thani, Samut Prakan, Samut Sakhon | 353 |
| Chachoengsao | 345 |
| Phra Nakhon Si Ayutthaya | 343 |
| Chaing Mai, Khon Kaen, Krabi, Lopburi, Saraburi, Nong Khai, Prachin Buri, Phangna, Nakorn Ratchasima, Trat, Suphan Buri, Songkhla, Surat Thani, Ubon Rachathani | 340 |
| Chanthaburi, Kalasin, Mukdahan, Sakon Nakhon, Samut Songkhram, Nakhon Nayok | 338 |
| Ang Thong, Kanchanaburi, Bung Kan, Chai Nat, Loei, Buriram, Nakhon Phanom, Phayao, Surin, Roe Et, Phattalung, Nakhon Sawan, Prachuap Kiri Khan, Phitsanulok, Sa Kaeo, Petchburi, Uttaradit, Yasothon | 335 |
| Amnat Charoen, Chiang Rai, Chumpon, Chaiyaphum, Kampaeng Phet, Mae Hong Son, Sisaket, Nong Bua Lamphu, Lampang, Lamphun, Mahasarakham, Sing Buri, Satun, Phrae, Sukothai, Ratchaburi, Tak, Nakhon Si Thammarat, Sisaket, Ranong, Phichit, Uthai Thani | 332 |
| Narathiwat, Nan, Pattani, Yala and Udon Thani | 328 |
What is the minimum wage for foreigners in Thailand?
The minimum wage for foreigners in Thailand varies depending on their nationality. Please see below for a breakdown of the minimum wages for foreigners in Thailand.
Nationality Minimum Wage for foreign employees
| Nationality | Monthly minimum wage (THB) |
| Canada, Japan, and the United States of America | 60,000 |
| Europe (including the United Kingdom) and Australia | 50,000 |
| Hong Kong, Malaysia, South Korea, Singapore and Taiwan | 45,000 |
| China, India, Indonesia, the Middle East and the Philippines | 35,000 |
| Africa, Cambodia, Laos, Myanmar, and Vietnam | 25,000 |
What is the cost of a work permit in Thailand?
Extra costs are involved when a company wishes to hire a foreign employee. To legally employ a foreigner, they must have the correct visa and work permit, and the associated costs of obtaining these are usually covered by the hiring company. While the process for a Thai company and a BOI company is different, typically, the following is required.
Work permits are essential for any foreigner working or intending to work in Thailand. Failure to obtain a valid work permit could result in punishments for the offending foreigner and the company they work for who failed to obtain a work permit.
The first step towards applying for a work permit is for the foreigner to obtain a Non-Immigrant B visa. This visa can be obtained from your home country’s Thai embassy or consulate. It is important to note that a Non-Imm B visa requires a lot of paperwork from the company.
It is possible to apply for a Non-Immigrant B visa at the Immigration Office in Thailand if the foreigner holds a valid Tourist visa (TR) or visa exemption (with the validity remaining being no less than 15 days). However, this depends on the circumstances of the employer/company and whether they can provide the required documents in time.
Holders of a Non-Immigrant O (based on marriage to a Thai Spouse) can also apply for a work permit. Holders of this visa do not need to apply for the Non-Imm B visa.
Once a Non-Immigrant B visa has been obtained, the work permit can be applied.
Please note that official government fees (3,100 THB per work permit and 1,900 THB for a 90-day Non-Imm B vias) are associated with applying for both the visa and work permit.
Does Thailand have overtime pay?
Employees who work beyond their regular work hours are entitled to receive 150% of their hourly compensation. During a holiday or day off, up to eight hours of work are compensated at a base rate of 200%, while any extra hours worked during a holiday or day off are paid at 300% of the base hourly rate.
What are the holiday/paid leave rates in Thailand?
Employees working in Thailand are entitled to paid leaves after completing one year of service with their company. The following are examples of leaves provided to employees:
Annual leave:
Employees who have worked continuously for one year are entitled to a minimum of six working days of annual vacation and should receive their basic pay at a rate equivalent to regular working days. If employees have worked for less than one year, their employer may grant them annual vacation days pro-rata.
Sick leave:
In Thailand, employees are entitled to 30 days of paid sick leave per year. If an employee takes three or more days of sick leave, their employer may request a medical certificate.
Maternity leave:
As of 2019, maternity leave in Thailand has been extended to 98 days with full pay, including days off for prenatal doctor visits. Maternity leave includes any holidays that fall during the leave period. During the first 45 days of maternity leave, the employer pays the employee’s full salary, while the remaining 50% of the leave is covered by social security.
What are the social security contributions in Thailand?
The employers and employees must contribute to the Social Security Fund (SSF), with the current contribution rate at 5% of the employee’s salary. The minimum salary for the calculation is 1,650 THB, while the maximum is 15,000 THB. As a result, the minimum contribution is 83 THB, and the maximum is 750 THB, even if an employee’s salary exceeds 15,000 THB.
Whenever a new employee joins a company, they must be registered in the social fund within 30 days. Employees who leave the company should be removed from the social fund within 15 days of employment termination.
Social security payments in Thailand cover the following benefits:
- Child benefits,
- Death benefits,
- Disability benefits,
- Injury or sickness benefits,
- Maternity benefits,
- Old-age benefits,
- Unemployment benefits.
Does Thailand offer compensation for being fired?
The Labour Protection Act (No.7) B.E. 2562 (2019) was enacted on May 5, 2019. This act increased the number of days of wage paid to employees who have worked for 20 years or more and are terminated from their employment.
The following are the severance pay rates for termination without cause:
| Employment period | Rate of severance pay |
| 120 days but less than one year | 30 days |
| One year but less than three years | 90 days |
| Three years but less than six years | 180 days |
| Six years but less than 10 years | 240 days |
| 10 years but less than 20 years | 300 days |
| 20 years or more | 400 days |
The employee can sue the employer for unfair dismissal and obtain additional compensation.
How can Belaws help?
You can talk directly to one of our experts for more information about employing staff in Thailand.
This article is for information purposes only and does not constitute legal advice.
Our consultations last for a period of up to 1 hour and are conducted by expert Lawyers who are fluent in English, French and Thai.
Consultations can be hosted via WhatsApp or Video Conferencing software for your convenience. A consultation with one of our legal experts is undoubtedly the best way to get all the information you need and answer any questions you may have about your new business or project.
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Frequently asked questions
How to hire Thai staff?
To hire Thai staff, you can advertise job openings on local job boards, work with recruitment agencies, or engage in networking within local business communities. Ensure you comply with Thai labor laws and regulations, including work permits, visas, and social security contributions.
Does Thailand pay workers well?
While wages in Thailand can vary significantly depending on the industry and job position, the country generally offers competitive salaries to both skilled and unskilled workers. Make sure to consider the local market rates when hiring staff.
What is the working condition in Thailand?
Working conditions in Thailand vary depending on the industry and employer. Generally, Thai labor laws provide for reasonable working hours, paid leave, and mandatory social security contributions. Employers should strive to maintain a safe and healthy working environment for their employees.
What is the most common job in Thailand?
Thailand has a diverse job market, with positions available in various industries such as tourism, agriculture, manufacturing, and services. The most common job type will depend on the region and local economic conditions.
How much do Thai people get paid per hour?
The minimum wage in Thailand varies by region and is subject to change. As of 2021, it ranged from 313 to 336 Thai Baht per day. However, skilled and experienced workers can earn much higher hourly rates depending on their job position and industry.
How much is Thai salary per day?
The minimum daily wage in Thailand is determined by the region and can range from 313 to 336 Thai Baht. This rate is subject to change, and higher salaries are common for skilled and experienced workers.
What are the costs associated with hiring staff in Thailand?
Costs associated with hiring staff in Thailand include recruitment expenses, salaries, mandatory social security contributions, visa and work permit fees for foreign workers, and providing employee benefits such as health insurance, annual leave, and bonuses.
How can businesses minimize the costs of hiring staff in Thailand?
- Businesses can minimize the costs of hiring staff in Thailand by streamlining their recruitment process, offering competitive salary packages to attract qualified candidates, and ensuring compliance with local labor laws to avoid fines and penalties.
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