Thailand is the second largest economy in Southeast Asia and the region’s most established manufacturing base for cars, electronics and food. It is also a services market in its own right, with Bangkok functioning as a regional hub for tourism, healthcare, logistics and, increasingly, digital and data businesses along the Eastern Economic Corridor. Companies arrive expecting a straightforward hire. What they find is a labour framework that is generous to employees, a work permit system with hard numerical rules, and a culture where the way you hire matters as much as what you pay.
This guide covers the workforce side of a Thailand expansion: how to get people employed and paid correctly, what it really costs, and the rules that catch newcomers out.
Why Thailand? The Business Case
- Manufacturing depth. The Bangkok, Chonburi and Rayong corridor hosts the region’s densest automotive and electronics supply chains, and the Eastern Economic Corridor is drawing electric vehicle, battery, semiconductor and data centre investment on top of it.
- A large domestic market. Around 70 million consumers, a mature retail and hospitality sector, and one of the most digitally active populations in Asia for payments and e-commerce.
- Bangkok as a regional base. Strong international schools, healthcare and air links make it a practical place to seat a regional team, and Thailand’s Board of Investment (BOI) offers tax holidays and relaxed foreign hiring rules for promoted activities.
- A skilled, loyal workforce. Thai professionals tend to stay with employers who treat them well, and turnover in established teams is lower than in Vietnam or Indonesia.
The Biggest Challenges of Expanding Into Thailand
- Foreign ownership is restricted by default. Under the Foreign Business Act most service businesses are capped at 49% foreign ownership unless you hold a Foreign Business Licence, BOI promotion, or fall under a treaty such as the US Treaty of Amity. Incorporating a Thai limited company is quick, but structuring it so a foreign parent can legally control it is where time and legal fees go. We compare the alternatives in hiring in Thailand without a local entity.
- Work permits come with arithmetic. A standard Thai company needs THB 2 million of registered capital for each foreign employee and must employ four Thai nationals for every foreigner. Both are checked at the pre-approval stage. BOI-promoted companies are exempt from the ratio, which is a major reason companies seek promotion. What promotion does and does not change is covered in BOI promotion and hiring in Thailand.
- Minimum wages are set by province. From 2026, Bangkok, Phuket, Chonburi, Rayong, Chachoengsao and Koh Samui are at THB 400 a day, while the lowest provinces sit at THB 337. Hotels and entertainment venues pay THB 400 regardless of location.
- Social Security changed in January 2026. Employer and employee each contribute 5% to the Social Security Fund, but the wage ceiling rose from THB 15,000 to THB 17,500, lifting the maximum monthly contribution from THB 750 to THB 875, with further steps scheduled for 2029 and 2032. Payroll systems still using the old cap are under-remitting.
- Severance is statutory and steep. The Labour Protection Act sets severance from 30 days’ wages after 120 days of service up to 400 days’ wages after 20 years, with no cap, and it is payable on almost any employer-initiated termination that is not for serious misconduct. This is why probation in Thailand is almost always set at 119 days.
- The working week is 48 hours. Overtime is capped at 36 hours a week with written consent, paid at 1.5 times on working days and 3 times on holidays. Annual leave is only six days after a year, but there are at least 13 public holidays, and most employers add more leave to compete.
Employer of Record: Hiring in Thailand Before You Have a Company
An Employer of Record (EOR) is a Thai company that legally employs your staff on your behalf. You direct the work; the EOR holds the employment contract, runs payroll, remits Social Security and withholding tax (PND.1), manages leave and, critically, carries the severance obligations correctly.
In Thailand the EOR route removes the need to structure a foreign-controlled entity before you have proven the market. It is for Thai hires: if you need to bring in a foreign national, the work permit sits with the company that genuinely employs them, so settle that question before anything else.
People Profilers Thailand provides EOR services in Thailand from Bangkok, alongside our offices in Singapore, Malaysia, Vietnam and Indonesia.
Payroll Outsourcing: Compliance Without a Thai Finance Team
Once a Thai company is operating, payroll remains a monthly compliance exercise with several moving parts:
- Personal income tax withheld monthly and filed on form PND.1 by the 7th of the following month (15th if filed online), with progressive rates from 0% to 35%
- Social Security Fund contributions at 5% each, now on the THB 17,500 ceiling, due by the 15th
- Provident fund contributions if you offer one, which most competitive employers in Bangkok do
- Overtime and holiday pay calculated on the Labour Protection Act multiples, with the 36-hour weekly cap monitored
- Year-end reconciliation on PND.1 Kor and the individual 50 Tawi withholding certificates every employee needs for their own filing
Payroll outsourcing in Thailand takes all of this off your plate and gives you a single accountable partner for payroll across ASEAN.
Work Permits: Bringing Foreign Talent Into Thailand
Plan expatriate hires early. The standard route has two halves and typically takes six to twelve weeks end to end:
- The employer obtains WP.3 pre-approval from the Ministry of Labour, which is where the capital and Thai-staff ratio are checked
- The employee applies for a Non-Immigrant B visa at a Thai embassy abroad, enters, and the work permit is issued after arrival
- Permits are tied to the employer, the position and the work location; changing any of them means an amendment
- BOI-promoted companies use the One Stop Service Centre and are exempt from the 4 to 1 ratio
- Senior specialists and executives may qualify for the LTR visa (ten years, work permit exemption, for high earners) or the SMART visa for targeted industries
Our work permit services in Thailand help employers prepare for the WP.3, visa and permit stages and plan renewals in good time.
Recruitment: Hiring the Right People in Bangkok and the EEC
Thai hiring rewards patience and respect for process:
- Bangkok holds the finance, technology, marketing and shared-services talent; Chonburi and Rayong hold engineering, production and supply chain talent for the EEC
- Bilingual professionals are scarce and command a premium; many strong candidates prefer stable, well-known employers, so a new entrant needs a partner to make the introduction
- Notice periods are usually one pay period, but senior candidates often serve longer by agreement, and few will resign before the annual bonus is paid, which makes the weeks after Chinese New Year and after Songkran the busiest hiring windows
- Face matters. Slow feedback or a clumsy offer process loses candidates who would otherwise have accepted
See our recruitment services in Thailand and executive search and headhunting in Thailand.
A Quick Checklist Before You Hire in Thailand
- Decide Thai company vs EOR for the first 6 to 12 months, and check whether BOI promotion is realistic for your activity
- Budget Social Security at 5% on the new THB 17,500 ceiling plus any provident fund on top of gross pay
- Map roles to the provincial minimum wage (THB 400 in Bangkok and the EEC) and the 48-hour week
- Set probation at 119 days and model severance exposure under the Labour Protection Act before signing
- If hiring expatriates, confirm the THB 2 million capital and 4 to 1 ratio, or check whether BOI promotion applies
- Draft contracts and policies in Thai as well as English; Thai prevails in a dispute
- Time senior hiring around bonus season, Chinese New Year and Songkran
Ready to Expand Into Thailand?
People Profilers has supported companies entering Southeast Asia for more than 20 years. Our Bangkok team works alongside our offices in Singapore, Malaysia, Vietnam and Indonesia, so you get one partner for EOR, payroll, work permits and recruitment across the region, with people on the ground who understand how Thailand actually works.
