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Country Guide

Employer of Record in Thailand (EOR in Thailand)

Last updated: June 3, 2025
Thailand

Capital City

Bangkok

Languages

Thai

Currency

Thai Baht (THB)

Population Size

Approx. 66.5 million

Employer Taxes

5% – 6.5%

Employee Costs

aprox. 5%

Payroll Frequency

Monthly

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We are your Employer of Record in Thailand, its strategic location in South East Asia and a vibrant economy boosted by infrastructure investment, offers an enticing environment for international businesses ready to take chances. Despite the advantages, the complexities of Thailand’s regulatory framework, including its labor laws and tax regulations, can be a lot for those not prepared for the challenge. However, an Employer of Record (EOR) in Thailand can serve as your local expert, taking on legal responsibility for workers and ensuring a smooth entry into the market and ongoing adherence to all necessary regulations.

 

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Choosing Between an Employer of Record and Company Incorporation in Thailand

While establishing a subsidiary in Thailand is traditionally seen as the go-to for local expansion, opting for an Employer of Record offers several comparative advantages, such as:

  • Speed – The business setup process in Thailand is expedited with an Employer of Record, enabling you to start operations and hire staff much faster. Company incorporation can take several months of planning and documentation, whereas an Employer of Record can make your team operational within weeks.
  • Compliance – Both Employer of Records and subsidiaries must comply with Thailand’s tax laws and labor regulations. However, Employer of Records in Thailand have the specialized knowledge to handle these complexities and ensure continuous compliance without the need for in-house experts.
  • Cost – For small teams or temporary expansions, Employer of Record services are often more cost-effective than setting up a subsidiary, as you avoid upfront incorporation expenses and ongoing administrative costs.
  • Control – While incorporation offers extensive control over HR, finances, and operations, Employer of Records can provide significant control over your workforce while reducing your administrative responsibilities.

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR

Company Incorporation

Price

80% Less Expensive

Market Entry

2-5 Days

6 Months

Employee Turnover
Decrease by 14%
Recommendation
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 – 9%
ROI
27%
Closed During Pandemic
-58%
employer of record

The Advantages of a Thai Employer of Record

icon EOR

Efficient Setup

Navigate complex tax system and labor laws seamlessly in Thailand. Employer of Record services simplify the setup process, ensuring compliance from day one.

icon EOR

Expert Compliance Management

Thailand’s regulations can be complex, but Employer of Records have the expertise to keep your business compliant with local tax laws, labor rules, and social security contributions.

icon EOR

Minimized Risk and Liability

Acting as your legal employer in Thailand, an Employer of Record reduces your risks associated with employment regulations and ensures compliance.

icon EOR

Focus on Core Business Objectives

Delegate HR tasks like recruitment, payroll processing, and tax management to your Employer of Record in Thailand, freeing up your time to focus on core business activities.

icon EOR

Cost Efficiency

EOR services can be more economical than establishing a local subsidiary, particularly for smaller teams or temporary needs, by avoiding initial incorporation costs and ongoing administrative burdens.

Our EOR in Thailand: How does it work?

We provide a simple setup process to get you started in Thailand as quickly as possible. 

1

We meet with you to discuss the scope of your project and its details. Based on the requirements provided, we develop a plan best suited to your needs that will also align with your greater company goals and values.

2

Through our legal entity, you can hire your staff and begin your day-to-day operations in Thailand.

3

We handle all the steps related to the onboarding process. From there, our PEO company takes care of all the necessary legal and administrative responsibilities involved with ongoing HR operations.

4

Once onboarded, your staff can immediately begin operations and make the best use of available time and resources.

The Differences Between PEOs and Employer Of Record

When considering a partnership with a PEO in Thailand, you will likely also hear the term EOR (Employer of Record). Typically, the two terms are largely interchangeable based on the kind of services they offer. The main difference between the two is the level of liability taken on by the PEO/EOR and the parties involved in the agreement.  

  • A PEO provides all HR services to employees on behalf of other companies 
  • A PEO agreement is made between the PEO and the original company to share the responsibilities for the employee 
  • An EOR in Thailand legally hires the employee on behalf of the original company and provides all HR services 
  • An EOR agreement is made between the EOR and the employee on behalf of the original company 

In Thailand both services are indistinct according to national regulations, but INS Global can offer any elements of both according to your requirements 

INS GUIDES

Check Our Thailand Labor Law Guide

Learn how the Thailand Labor Law Guide is applied in all aspects and situations, from an employer and employee perspective.
Guide icon

Thailand Labor Law Overview

Employment Contracts In Thailand

Contracts must be in Thai and outline employment terms, including salary, benefits, working hours, termination clauses, and minimum wage requirements. An Employer of Record ensures your contracts comply with Thai law and protect your interests.

Working Hours

The standard working hours in Thailand are 8 hours a day and a maximum of 48 hours a week. The working hours are set out in the Labor Protection Act, which also set out other basic legal protections for employees working in Thailand.

For employees who work in an environment deemed dangerous to their health and safety, their working hours cannot exceed more than 7 hours a day or a maximum of 42 hours a week.

Employees are able to work overtime for a maximum of 36 hours per week. Overtime rates vary according to the specific day:

  • Overtime on a typical working day: must be 1.5 times the employee‘s standard hourly rate.
  • Regular working hours during a holiday: must be 2 times the employee’s standard hourly rate.
  • Overtime during a holiday: must be 3 times the employee‘s standard hourly rate.

Types Of Leave

Holidays and Annual Leave

Employees in Thailand who have worked for at least a year are entitled to a minimum of 6 fully paid annual leave days. An employer can grant additional leave days according to the labor contract provisions.

Unless otherwise provided by the employment contract or employee handbook, unused annual leave days may be accumulated. Leave entitlement is provided for in the Labor Protection Act.

Sick Leave

There is no limit on sick leave in Thailand. However, only 30 days of paid sick leave are provided for in a calendar year. If an employee has taken more than 3 consecutive sick days, an employer can request the employee to produce a medical certificate.

Parental Leave

Female employees can take up to 98 days of maternity leave in Thailand. During that time, the employer is required to provide the employee’s full salary for up to 45 days, whereafter the employee is eligible to receive a lump-sum payment from the social security system, which is equivalent to full pay.

According to the Labor Protection Act, there are no provisions for mandatory paternity leave.

Tax Law in Thailand

The Thailand Revenue code requires personal income tax payments to be made on any income sourced in Thailand from both residents and non-residents. Tax residents in Thailand are also required to make tax contributions on any income that is sourced outside of Thailand.

A person is considered a tax resident in Thailand if they are physically present in Thailand for 180 days or more in a calendar year. The maximum tax rate payable, set at 35%, is applicable to income exceeding 5 million Thai baht.

With social security, both resident and non-resident employees who receive their income from a Thai employer are required to make social security contributions.

The contributions which are made to the Thailand social security fund are made in equal contributions from both employers and employees (5% of the employee’s salary, to a maximum of TBH 750 per month).

Social security contributions are withheld at the source, and payment is made by the employer when an employee receives their income.

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Frequently Asked Questions

faqs

An Employer of Record handles all legal, HR, and compliance tasks, allowing businesses to enter the Thai market quickly without the need to establish a local entity.

Using an Employer of Record can often be more cost-effective than setting up a subsidiary, as it eliminates initial incorporation costs and reduces ongoing administrative expenses.

Yes, an Employer of Record manages the entire visa and work permit application process, ensuring compliance with local immigration laws and regulations.

Employer of Record services are beneficial for businesses of all sizes, particularly those looking for rapid market entry, cost savings, and reduced administrative burdens.

Employer of Records have local experts who stay updated on regulatory changes and manage all compliance aspects, ensuring your business adheres to Thai labor laws.

While the Employer of Record is the legal employer, you retain significant control over day-to-day management and operational decisions regarding your employees.

Smiling woman representing the simplicity and efficiency of a Global Employer of Record for international hiring

A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.

This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each  country.

Public Holidays Calendar

Thailand

Date Day Holiday Notes
1 January Wednesday New Year’s Day Start of the Gregorian calendar year
12 February Wednesday Makha Bucha Day Buddhist holiday commemorating the Buddha’s sermon to 1,250 disciples
6 April Sunday Chakri Memorial Day Commemorates the founding of the Chakri Dynasty
7 April Monday Substitution for Chakri Memorial Day Observed as a public holiday since 6 April falls on a Sunday
13 April Sunday Songkran Festival Traditional Thai New Year
14 April Monday Songkran Festival Holiday Continued celebrations
15 April Tuesday Songkran Festival Holiday Continued celebrations
16 April Wednesday Songkran Festival Holiday Additional holiday for extended celebrations
1 May Thursday National Labour Day International Workers’ Day; observed by the private sector
4 May Sunday Coronation Day Commemorates the coronation of King Vajiralongkorn
5 May Monday Substitution for Coronation Day Observed as a public holiday since 4 May falls on a Sunday
11 May Sunday Visakha Bucha Day Buddhist holiday commemorating the birth, enlightenment, and death of the Buddha
12 May Monday Substitution for Visakha Bucha Day Observed as a public holiday since 11 May falls on a Sunday
2 June Monday Bridge Public Holiday Additional holiday to create a long weekend
3 June Tuesday Queen Suthida’s Birthday Commemorates the birthday of Queen Suthida
10 July Thursday Asarnha Bucha Day Buddhist holiday marking the Buddha’s first sermon
28 July Monday King Vajiralongkorn’s Birthday Commemorates the birthday of King Vajiralongkorn
11 August Monday Bridge Public Holiday Additional holiday to create a long weekend before Mother’s Day
12 August Tuesday Queen Mother’s Birthday Commemorates the birthday of Queen Sirikit; also celebrated as Mother’s Day
13 October Monday King Bhumibol Adulyadej Memorial Day Commemorates the passing of King Bhumibol Adulyadej
23 October Thursday Chulalongkorn Day Commemorates the death of King Chulalongkorn (Rama V)
5 December Friday King Bhumibol Adulyadej’s Birthday / National Day / Father’s Day Commemorates the birthday of King Bhumibol Adulyadej; also celebrated as National Day and Father’s Day
10 December Wednesday Constitution Day Commemorates the promulgation of Thailand’s first permanent constitution in 1932
31 December Wednesday New Year’s Eve Marks the end of the Gregorian calendar year

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