How to Use An Employer of Record in
thailand

Hiring in Thailand requires navigating the Labour Protection Act B.E. 2541 (1998), which mandates specific contract terms, severance formulas tied to years of service, and contributions to the Social Security Fund at 5% of salary up to a capped base. An Employer of Record lets you hire compliantly in Thailand without incorporating a local entity, handling all statutory obligations while you retain full control over daily operations. The EOR removes the risk of misclassifying employees under Section 5 of the Labour Protection Act, which can trigger back payments, fines from the Ministry of Labour, and exposure to unfair dismissal claims.

What Is an Employer of Record in Thailand?

An Employer of Record in Thailand is a third-party organisation that becomes the legal employer of your staff under Thai law, handling all statutory obligations, payroll, and compliance while you retain full operational control. The EOR signs the employment contract, registers the employee with the Social Security Office, withholds personal income tax, and manages termination procedures in line with Thai regulations. You direct the work, set objectives, and manage performance, but the EOR owns the legal employment relationship.

Under the Labour Protection Act B.E. 2541 and the Social Security Act B.E. 2533 (1990), employment contracts in Thailand must specify job title, salary, working hours, and place of work. Employers must contribute 5% of monthly salary (capped at THB 15,000 salary base, so maximum THB 750 per month in 2026) to the Social Security Fund and withhold personal income tax according to progressive rates administered by the Revenue Department. If your industry falls under a collective agreement or ministerial regulation, additional wage floors, shift premiums, or overtime multiples apply, and the EOR ensures your contracts and payroll reflect those obligations.

You retain day-to-day management, assign tasks, evaluate performance, and decide on promotions or role changes. The EOR owns payroll processing, monthly Social Security and tax filings with the Social Security Office and Revenue Department, the written employment contract signed under Thai law, compliance with the Labour Protection Act and ministerial regulations, and termination procedures including notice, severance calculation, and final settlement documentation.

How Does an Employer of Record Work in Thailand?

When you hire through an Employer of Record in Thailand, the EOR becomes the legal employer while you direct the employee's work. The process follows a clear sequence, from defining the role and employment terms to registering with Thai authorities, running compliant payroll, and managing ongoing statutory obligations. Here is how it works step by step.

Step 1: Define Role and Employment Terms

You specify the job title, salary, working hours, start date, and workplace location. If the role falls under a sector covered by a ministerial wage order or collective agreement, the EOR confirms the applicable minimum wage, which in 2026 ranges from THB 354 to THB 370 per day depending on province. The EOR also checks whether any industry-specific benefits, overtime multiples, or shift allowances apply under the Labour Protection Act or ministerial regulations. Once terms are agreed, the EOR drafts the employment contract under Thai law.

Step 2: EOR Compliance Check

The EOR verifies that the proposed salary meets or exceeds the provincial minimum wage set by the Ministry of Labour's Wage Committee, which in 2026 is THB 354 to THB 370 per day. Working time is confirmed to comply with Section 23 of the Labour Protection Act, which sets a standard maximum of 8 hours per day and 48 hours per week for most roles, with overtime capped at 36 hours per week. The EOR classifies the role correctly to avoid misclassification under Section 5, which defines an employee as someone working under supervision, receiving wages, and following the employer's orders. Misclassification can result in back payment of Social Security contributions, severance, and penalties from the Ministry of Labour.

Step 3: Employment Contract

The EOR prepares a written employment contract in Thai, as required for enforceability under Thai labour law and court precedent. The contract must include job title and description, salary and payment schedule, working hours and rest days, and place of work, all mandated under the Labour Protection Act. For fixed-term contracts, the EOR ensures the term does not exceed two years under Section 17, and renewal does not circumvent permanent employment protections. The probation period is capped at 119 days under common practice, though the Labour Protection Act does not set a statutory maximum, so the EOR aligns with Ministry of Labour guidance and court rulings. Both you and the employee sign, and the EOR retains the original as the legal employer.

Step 4: Government Registrations

The EOR registers the new employee with the Social Security Office under Section 33 of the Social Security Act within 30 days of the start date, submitting Form SS.1-03 to enrol the employee in the Social Security Fund. The EOR also registers as the employer if not already registered, using Form SS.1-00. Late registration triggers penalties of up to THB 20,000 under Section 112 of the Social Security Act and exposes the employer to retroactive contribution liability. The Revenue Department does not require advance registration for new hires, but the EOR must withhold personal income tax from the first payslip and remit it monthly via Form PND.1 by the seventh day of the following month.

Step 5: Payroll in Local Currency

The EOR processes payroll monthly in Thai Baht, the standard pay cycle in Thailand. The EOR withholds personal income tax according to the progressive rates published by the Revenue Department, which in 2026 range from 0% on income up to THB 150,000 annually to 35% on income above THB 5,000,000. The EOR deducts the employee's Social Security contribution of 5% of salary (capped at THB 15,000 salary base, so maximum THB 750 per month), matches it with the employer contribution of 5% (also capped at THB 750), and remits the combined amount to the Social Security Office by the 15th of the following month. The EOR provides a payslip detailing gross salary, deductions, and net pay, and transfers the net amount to the employee's Thai bank account.

Step 6: Ongoing Compliance

The EOR files monthly Social Security contributions via Form SS.3-01 to the Social Security Office by the 15th of each month, covering sickness, maternity, disability, death, child allowance, old age, and unemployment benefits. The EOR submits monthly personal income tax withholdings to the Revenue Department via Form PND.1 by the seventh of the following month. The EOR files annual income tax statements using Form PND.1 Kor by the end of March for the prior calendar year, reconciling withholdings and issuing employee tax certificates. The EOR monitors updates to the Labour Protection Act, ministerial regulations, and Social Security Act amendments published in the Royal Gazette, adjusting contracts, payroll, and benefits within the legal deadline. The EOR also ensures compliance with the Labour Relations Act B.E. 2518 (1975) if the workplace has 10 or more employees, which may require work rules registration with the Ministry of Labour.

Step 7: Termination

Under Section 118 of the Labour Protection Act, you may terminate employment with just cause (serious misconduct, repeated policy breaches, criminal acts) without notice or severance, or without cause by providing notice and statutory severance. Notice periods are not prescribed by statute but typically follow the pay cycle, so one month's notice is standard for monthly-paid employees, though employment contracts or work rules may specify longer periods. Severance is calculated under Section 118 as follows: 30 days' wages for 120 days to under 1 year of service, 90 days for 1 to under 3 years, 180 days for 3 to under 6 years, 240 days for 6 to under 10 years, and 300 days for 10 years or more, with wages defined as the last rate of pay excluding irregular allowances. The EOR calculates the amount, prepares the termination letter, pays final salary, accrued leave, and severance in one settlement, and files the termination with the Social Security Office using Form SS.6-09 to cease contributions and transfer the employee to unemployment benefits if eligible.

Employment Laws and Compliance an Employer of Record Handles in Thailand

When you hire through an Employer of Record in Thailand, they take on full compliance responsibility across all areas of Thai employment law, so you do not need to build an in-country HR function or navigate ministerial regulations yourself. The EOR ensures your employment relationship meets every statutory obligation and filing deadline.

• Employment Contracts: The EOR drafts and issues written contracts under the Labour Protection Act B.E. 2541, specifying job title, salary, working hours, and workplace as required. Contracts must be in Thai for enforceability in Thai courts, and fixed-term contracts are limited to two years under Section 17. Non-compliant contracts expose you to claims that the employee is permanent, triggering severance and unfair dismissal liability.
• Personal Income Tax Withholding: The EOR withholds personal income tax monthly according to the progressive rates published by the Revenue Department, ranging in 2026 from 0% on income up to THB 150,000 annually to 35% on income above THB 5,000,000. The EOR remits withholdings via Form PND.1 by the seventh of the following month and files annual reconciliation using Form PND.1 Kor by March 31. Late or incorrect withholding triggers penalties of 1.5% per month on the unpaid amount and potential Revenue Department audits.
• Social Security Contributions: The EOR registers employees with the Social Security Office under the Social Security Act B.E. 2533 and contributes 5% of monthly salary (capped at THB 15,000 salary base, so maximum THB 750 per month) matched by a 5% employee contribution. Contributions are remitted by the 15th of each month via Form SS.3-01, covering sickness, maternity, disability, death, child allowance, old age, and unemployment. Late contributions incur penalties of 2% per month under Section 113, and failure to register can result in fines up to THB 20,000 and retroactive liability.
• Statutory Leave: The EOR administers annual leave of at least six working days after one year of service under Section 30 of the Labour Protection Act, increasing by one day per year up to a maximum set by company policy. The EOR grants public holidays as gazetted by the Cabinet, which in 2026 include up to 19 days depending on substitutions. The EOR administers sick leave of up to 30 days per year with full pay as mandated by Section 32, and business leave (personal leave) of at least three days per year under Section 31. Failure to provide statutory leave can result in Ministry of Labour penalties and employee claims for unpaid wages.
• Termination and Severance: The EOR manages termination under Section 118 of the Labour Protection Act, calculating severance based on length of service: 30 days' wages for 120 days to under 1 year, 90 days for 1 to under 3 years, 180 days for 3 to under 6 years, 240 days for 6 to under 10 years, and 300 days for 10 years or more. Termination without just cause and without severance payment exposes you to claims of unfair dismissal before Labour Court, which can award reinstatement or compensation up to 360 days' wages under Labour Court precedent. The EOR prepares termination letters, calculates final settlement, and files termination with the Social Security Office.
• Working Time and Overtime: The EOR ensures compliance with Section 23 of the Labour Protection Act, which sets a standard maximum of 8 hours per day and 48 hours per week for most roles, with rest periods and meal breaks. Overtime is capped at 36 hours per week and paid at 1.5 times the hourly rate for weekdays and 2 times for weekends and holidays under Section 61. Non-compliance can result in Ministry of Labour inspections, fines, and employee claims for unpaid overtime backdated up to two years under the statute of limitations.
• Occupational Health and Safety: The EOR ensures compliance with the Occupational Safety, Health and Environment Act B.E. 2554 (2011), which requires workplaces with 50 or more employees to appoint a safety officer and establish a safety committee. The EOR coordinates with the Department of Labour Protection and Welfare to register safety measures and submit annual reports. Non-compliance can result in fines up to THB 400,000 and suspension of business operations pending remediation.
• Data Protection and Employee Privacy: The EOR processes employee data in compliance with the Personal Data Protection Act B.E. 2562 (2019), which came into full enforcement in 2022. The EOR obtains employee consent for data collection, processing, and cross-border transfer, and appoints a data protection officer if required. Violations can result in penalties up to THB 5,000,000 or imprisonment and claims from employees for damages under the Act administered by the Personal Data Protection Committee.
• Collective Agreements and Work Rules: The EOR identifies whether the role falls under a collective bargaining agreement governed by the Labour Relations Act B.E. 2518, which applies to enterprises with 10 or more employees. If your company employs 10 or more, the EOR registers work rules with the Ministry of Labour as required under Section 108 of the Labour Protection Act, covering working hours, leave, disciplinary procedures, and grievance mechanisms. Failure to register work rules where required can result in fines and unenforceability of disciplinary actions before Labour Court.
• Workmen's Compensation Fund: The EOR registers the employer with the Workmen's Compensation Fund under the Workmen's Compensation Act B.E. 2537 (1994), contributing between 0.2% and 1.0% of monthly payroll depending on the industry risk classification. The Fund covers workplace injuries, occupational diseases, and death, and the EOR submits monthly contributions and files claims on behalf of injured employees. Non-registration exposes the employer to direct liability for compensation and fines under Section 54 of the Act.

How Much Does It Cost to Use an Employer of Record in Thailand?

The total cost of hiring through an Employer of Record in Thailand consists of two components: statutory on-costs mandated by Thai law and the EOR service fee. Statutory costs are fixed by law and apply to every employer operating in Thailand. Playroll's service fee starts from $399 per employee per month and is billed separately from payroll, giving you a single predictable cost structure. The service fee is the same whether you hire one employee or dozens, with volume discounts available for larger teams.

Let's look at an example that includes a base salary and the EOR service fee.

The EOR service fee covers preparation of compliant employment contracts in Thai, monthly payroll processing in Thai Baht with itemised payslips, registration and monthly filing with the Social Security Office and Revenue Department, administration of statutory leave, sick leave, and public holidays under the Labour Protection Act, calculation and payment of severance and notice on termination, ongoing monitoring of Labour Protection Act amendments and ministerial regulations published in the Royal Gazette, and in-country support from employment law experts who respond in your time zone.

Employer of Record vs Setting Up an Entity in Thailand

The choice between hiring through an Employer of Record and setting up your own legal entity in Thailand depends on your hiring volume, timeline, and long-term commitment. Foreign companies typically establish a Thai Limited Company (บริษัทจำกัด, or Borisat Chamkat), which requires compliance with the Foreign Business Act B.E. 2542 (1999) for majority foreign ownership. Registration involves drafting articles of association, obtaining a foreign business licence if your activity is restricted, registering with the Department of Business Development, and setting up tax accounts with the Revenue Department. The process takes 8 to 12 weeks and costs THB 300,000 to THB 600,000 in legal, registration, and compliance fees, not including the minimum registered capital requirement of THB 2,000,000 for certain licensed activities.

For companies hiring fewer than 15 employees in Thailand, an Employer of Record is almost always the faster and more cost-effective route.

Playroll also supports your long-term growth through its Global Entity Setup product, which handles entity incorporation and local payroll in 120+ countries, so you can transition from EOR to your own compliant entity in Thailand when the time is right, without switching providers or rebuilding your HR processes.

How Long Does It Take to Hire Someone in Thailand Through an Employer of Record?

You can onboard an employee in Thailand through an Employer of Record in 10 to 15 business days from signed agreement to first day of work, assuming you have finalised employment terms and the candidate has provided complete documents.

• Stage 1: Contract preparation and signing (2 to 3 business days): The EOR drafts a compliant employment contract in Thai under the Labour Protection Act, including job title, salary, working hours, and workplace, and sends it to you and the candidate for review and signature. Timing depends on how quickly both parties review and return signed copies, and whether any negotiation or amendments are needed on probation period, benefits, or fixed-term vs permanent classification.
• Stage 2: Government registrations (3 to 5 business days): The EOR submits Form SS.1-03 to the Social Security Office to enrol the employee in the Social Security Fund, which must be completed within 30 days of the start date under Section 33 of the Social Security Act but is typically done before the first day to ensure coverage from day one. Late registration can result in penalties up to THB 20,000 under Section 112 and retroactive contribution liability. The Revenue Department does not require advance registration, but the EOR must withhold personal income tax from the first payslip and remit it monthly.
• Stage 3: Payroll configuration and first cycle (3 to 5 business days): The EOR sets up the employee in the payroll system, configures Thai Baht salary, Social Security and income tax calculations, and bank transfer details. Thailand follows a monthly pay cycle, so the first payslip is issued at the end of the first month of work, with salary paid within the first seven days of the following month as commonly practiced under Section 70 of the Labour Protection Act. The EOR confirms the employee's Thai bank account details and tests the transfer to avoid delays.
• Stage 4: Thailand-specific requirements (2 to 3 business days, may run in parallel): If the employee requires a work permit under the Working of Aliens Act B.E. 2551 (2008), the EOR coordinates with you to obtain a Non-Immigrant B visa and apply for the work permit from the Department of Employment, which typically takes 2 to 4 weeks and requires proof of employment, company registration, and minimum capital or BOI promotion. This stage can run in parallel with contract signing and payroll setup if the candidate already holds a valid work permit, but will extend the overall timeline if the work permit must be obtained before the start date.

The timeline can extend if the candidate delays providing required documents such as national ID card or passport, bank account details, and Social Security number if previously registered. If the role requires registration of work rules under the Labour Relations Act because your total headcount reaches 10 employees, the EOR will need additional time to draft and submit work rules to the Ministry of Labour, adding 5 to 10 business days. If the employee requires a work permit and does not hold one, expect an additional 10 to 20 business days for visa and permit processing, depending on the candidate's nationality and the completeness of submitted documents.

In comparison, incorporating a Thai Limited Company and setting up compliant payroll typically takes 8 to 12 weeks, plus the time to hire and onboard an HR manager or accountant to run ongoing compliance.

How Playroll's Employer of Record Process Works in Thailand

Hiring through Playroll in Thailand is designed to get your team member onboarded compliantly and quickly, without you needing to navigate Thai employment law or set up local infrastructure.

You define the role and terms

You tell Playroll the job title, salary, start date, and working hours, and we confirm that the terms meet or exceed the applicable provincial minimum wage under the Labour Protection Act, which in 2026 ranges from THB 354 to THB 370 per day depending on location. If the role falls under a ministerial wage order or collective agreement, we flag any additional requirements before you proceed.

Playroll prepares the compliant contract

We draft a written employment contract in Thai that includes all mandatory clauses under the Labour Protection Act: job title and description, salary and payment schedule, working hours and rest days, and place of work. We send the contract to you and the candidate for review and signature, and once signed, we retain the original as the legal employer under Thai law.

Employee onboarded and payroll goes live

Playroll registers the employee with the Social Security Office using Form SS.1-03 within 30 days of the start date, and configures payroll to withhold personal income tax and Social Security contributions at the statutory rates. Onboarding typically takes 10 to 15 business days from contract signing to first day of work, and the employee receives their first payslip at the end of the first month, with salary paid in Thai Baht to their local bank account.

Playroll manages ongoing compliance

We handle monthly Social Security and income tax filings with the Social Security Office and Revenue Department, administer statutory leave and public holidays, and monitor changes to the Labour Protection Act, Social Security Act, and ministerial regulations published in the Royal Gazette. If your hiring in Thailand grows to the point where a local entity makes sense, Playroll can support the transition through our global entity setup service, incorporating your Thai Limited Company and transitioning payroll without disrupting your team.