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Undoubtedly, payroll is a critical process for any organization. The pay cycle in Thailand refers to the period an organization pays its employees, which can vary depending on the pay frequency the organization chooses to adopt.

The employer and the employee determine the pay date. Overtime pay, holiday pay, and overtime pay are given to employees once a month on an agreed date. The employer also must pay the employee’s salary in his or her workplace unless agreed otherwise. If employers want to deposit salary into the employee’s bank account, they must obtain the permission of the employee to do so. No employee can be forced to receive money deposited into his or her bank account instead of cash.

In Thailand, there is no legal obligation for a 13th-month wage payment.

Effective January 1, 2024, the minimum wages for unskilled workers in Thailand have been revised, with rates varying by province. The new daily wage rates range from THB 330 to THB 370, reflecting an average increase of 2.4% from the previous rates of THB 328 to THB 354.

In the initial round, the 22nd salary Committee selected the following minimum daily salary rate for 2024:

An employee must consent to overtime and cannot exceed 36 hours weekly. Employees working overtime are entitled to overtime pay. Overtime pay is 150% of their normal rate or 200% of the rate for work on holidays.

According to the commercial code, records must be kept for ten years.

New amendment to the Labor Protection Act to facilitate remote working
The Amended Act aims to facilitate agreements between employers and employees regarding Work-from-Home Arrangements

There are some restrictions on the type of work that women and children can be requested to undertake by their employers.

There are certain legal requirements giving preference to hiring disabled persons. The Empowerment of Persons with Disabilities Act 2007 mandates that a business or workplace employing 100 or more employees must employ at least one disabled person per every 100 non-disabled employees. Alternatively, suppose the employer does not want to employ the number of disabled persons the law requires. In that case, it may either make an annual contribution to the Fund for Empowerment of Persons with Disabilities or provide other assistance to disabled persons pursuant to criteria set forth by the authority.

Labour Protection Act for work-from-home and remote working arrangements

With effect from April 18, 2023:

• Thailand's new work-from-home (WFH) legislation, which takes effect on April 18, 2023, changes the Labour Protection Act to improve employee protections.
• It promotes flexible working arrangements, enhances labor efficiency, and improves job security and quality of life.

• Candidate name
• Date of Birth
• Gender
• Personal contact details (including address, telephone number and email)
• Emergency contact details
• Immigration and Eligibility Work data
• Marital status (if applicable)
• Passport/ID card number
• Photographs
• School/ university certificates
• Work history
• CV - personal data contained in your
• Bank account details
• Social security number
• Tax identification number

Thailand has no mandatory minimum or maximum probationary period. Most employers tend to set the probationary period as 119 days or less because the probationary employee’s employment can be terminated within the probationary period of 119 days without any severance pay under Thai law. However, a prior written notice, usually for not less than one month, must be given to the employee as probationary employment is considered a non-fixed term employment agreement.

If an agreed probationary period continues for longer than 119 days (whether by an original agreement or a subsequent extension), if the employee is subsequently terminated without any legal cause as stipulated under the LPA, the employer will be liable to pay severance and serve the employee an advance notice after the 119 days have expired.

Employees in Thailand must receive at least 13 paid holidays a year, including Labor Day (May 1); however, there are more than 13 official holidays.

Thailand's annual holidays are as follows:

• Jan. 1 and Jan. 2: New Year's Day
• Jan. 22: Chinese New Year
• Mar. 6: Makha Puja Day
• April 6: Chakri Day
• April 13-16: Songkran Festival (Thai New Year)
• April 21: End of Ramadan
• May 1: Labor Day
• May 4: Coronation Day (starting in 2020)
• May 5 and May 6: Visakha Bucha Day
• May 11: Royal Ploughing Ceremony
• June 3 and June 5: Her Majesty the Queen's Birthday
• July 28: His Majesty the King's Birthday
• Aug. 1: Ashana Bucha Day
• Aug. 2: Khao Phansa Day
• Aug. 12: Her Majesty the Queen Mother's Birthday
• Oct. 13: His Majesty King Bhumibol Adulyadej Memorial Day
• Oct. 23: King Chulalongkorn Day
• Dec. 5: Anniversary of His Majesty King Bhumibol Adulyadej's Birthday
• Dec. 10 and Dec. 11: Constitution Day
• Dec. 31: New Year's Eve

An employee who has worked continuously for one full year is entitled to an annual holiday of six days per year. If the employee works for less than one year, his or her annual leave is prorated. Sometimes, employers voluntarily give more than six days of annual leave to employees.

If employees do not use their annual leave holiday within a year, it is carried over to the next year and added to the next year’s annual leave. Yet some employers refuse to carry unused annual leave to the next year, annulling it when the year to which it belongs ends.

Employees can take up to 30 days of paid sick leave per year. If the employee is absent for more than three consecutive days, the employer can ask for a doctor’s note verifying the illness.

Employed expectant mothers are granted a minimum of 98 days of maternity leave. 45 days out of these 98 days are paid. Whether the remaining days are paid for depends on the employer’s agreement with the pregnant employee.

The rights of fathers of newborn babies vary depending on the sector in which they work. Fathers working in the private sector receive no paternity leave. The public sector, by contrast, gives fathers 15 days of paternity leave to take care of their newborn babies.

In the private sector, there is no paid paternity leave by statute in Thailand, although employers are free to offer paid/unpaid time off. (Both mothers and fathers who are insured by social security receive a THB 13,000 lump sum payment for child delivery.) Employees in the public sector are entitled to 15 days of paternity leave.

Military Service Leave: An employer must pay wages to an employee for military service leave, but not exceeding sixty days per year.

Employees are entitled to take paid leave of up to 60 days per year for military service.

Personal Leave: Effective May 5, 2019, employees may take up to three days of paid leave for necessary business. The term necessary business is not legally defined but can include governmental obligations, such as receiving an ID card or driver's license, managing weddings or funerals, or other religious practices. Effective until May 4, 2019, personal leave was not required to be paid, and the number of days was determined by the employer.

Adoption Leave: 56 days for adopting 1 child and 70 days for multiple adoptions.

Work-related injury leaves: If the employee needs to receive medical treatment due to work-related injury or occupational disease, his or her work-related injury leave should not exceed more than 12 months. In case of serious injury or special circumstances, the work-related injury leave may be appropriately extended upon the confirmation by the municipal labor ability certifying committee.

Yet again, the extension shall not exceed 12 months. Injured employees are paid 100% of their daily wages while they receive the required medical treatment. Employers bear the full brunt of payments for employees’ injury compensation.

Training Leave: Employees are entitled to take unpaid leave for training. Such training must consist of a course or program with a definite duration. The employer may deny training leave if the employee has already taken such leave for 30 days or more, on three or more prior occasions, or if granting such leave would adversely affect the employer’s business operations.

The usual termination procedure in Thailand is based on the provisions of the labor legislation unless an employer can offer sufficient justification for termination without notice (i.e., due to misconduct).

Written notice of termination must be submitted to the appropriate governmental authorities.

Employers must pay their employees 50% of their daily wages earned before the temporary business halt if it results from a factor other than a force majeure. The employee is paid for the whole period for which his or her services are not required.

Severance compensation is required in Thailand when appropriate and is based on the employee's length of service. Employees who have worked for the same employer for fewer than 120 days are not eligible for severance compensation.

Period of Employment Amount of Severance Pay

• More than 120 days but less than one year 30 days salary
• At least one year but less than three years 90 days salary
• At least three years but less than six years 180 days salary
• At least six years but less than ten years 240 days salary
• Ten years but less than 20 years 300 days salary
• 20 years or more, 400 days salary

An employer may terminate an employee’s employment immediately without giving advance notice or payment in lieu of notice for termination with legal cause.

For an employer who wishes to terminate an employee’s employment without legal cause and if the employment agreement is for an indefinite period, prior written notice must be given to the employee at least one full payment cycle in advance (but not more than three months in advance). Payment for an equivalent length of time can be given in lieu of notice.

Regardless of whether an employee is terminated with or without any legal cause, most termination payments, including the balance of the previous month’s salary, overtime pay, unused annual vacation, and severance pay, must be paid to the employee within three days of the date of termination. However, a payment in lieu of advance notice (if applicable) is payable to the terminated employee on the termination date.

Yes. Termination with severance pay is prescribed under section 118 of the LPA. All employees who have worked for 120 consecutive days or more are entitled to severance pay if their employment is terminated without legal cause. Severance pay is based on the duration of employment as follows:

1. 30 days’ wages where the employee has continuously worked for the same employer for 120 days or more but less than one year
2. 90 days’ wages where the employee has continuously worked for the same employer for one year or more but less than three years
3. 180 days’ wages where the employee has continuously worked for the same employer for three years or more but less than six years
4. 240 days’ wages where the employee has continuously worked for the same employer for six years or more but less than 10 years
5. 300 days’ wages where the employee has continuously worked for the same employer for ten years or more but less than 20 years; and
6. 400 days’ wages where the employee has continuously worked for the same employer for 20 years or more.

If an employer is moving to a new location or moving employees to another location, and does not post the required 30 days' notice, the employer must pay employees who do not wish to work at the new location 30 days of wages within seven days from the date of termination. Employees who are to move to a new location may notify the employer that they do not wish to move within 30 days of the posting of notice of the move, or from the date of the move if no notice is given, and may receive the amount of severance pay to which they otherwise were entitled within seven days from the date of termination

An employer is not required to pay severance pay to an employee whose employment has been terminated for any of the following reasons:

1. Performing his/her duty dishonestly or intentionally committing a criminal offense against the employer
2. Willfully causing damage to the employer
3. Committing negligent acts causing serious damage to the employer
4. Violating work regulations or order of the employer which is lawful and just for which the employer has already issued the employee a written warning, except in a serious instance for which the employer is not required to give a warning. The written warning shall be valid for not exceeding one year from the date the employee has committed the offense;
5. Absenting from duty without justifiable reason for three consecutive working days whether or not they are separated by holiday
6. Being sentenced to imprisonment by a final court judgment.

The Urgent Work Permit is the proper work license for short-term work activities carried out for up to 15 days (UWP). If the urgent work is not finished within the first 15 days, the UWP may be extended for an additional 15 days. Foreign nationals seeking a UWP must first get a Non-Immigrant B visa, except those who are visa-exempt.

All foreigners who want to work in Thailand will need a non-immigrant visa and a work permit. The first step is applying for a non-immigrant Category B visa, which breaks down into further categories of visas depending on your employee’s planned activities. Most of your employees will need a Category B visa, as this version is common for teachers, lawyers, and anyone working for a multinational corporation.

Keep in mind that Thailand has some professions that are off-limits to foreigners, so ensure your employees are working within avenues that are legal for their status.

Other common visas include:

• Non-immigrant visa IB
• Non-immigrant visa B-A
• Non-immigrant visa O
• Non-immigrant visa M

After securing a visa and a job offer, your employees must go to the Ministry of Labor and apply for a work permit. Then, they can extend their visa term by one or two years.

In September 2022, Thailand will introduce a new visa scheme offering long-term residence to wealthy global citizens, wealthy pensioners, work-from-Thailand professionals, and highly skilled professionals. To qualify for the high-skilled professional long-term resident visa, applicants must be professionals or experts in certain target industries, have more than five years of experience, and earn an annual income of more than USD 80,000. These requirements are reduced for certain education levels and eliminated if working for the Thai government.

Thailand enacted the Personal Data Protection Act (PDPA) in 2019, which will become fully effective on 1 June 2021, postponed from May 2020.

Under the PDPA, express written consent from applicants is legally required to be obtained before the employer can collect applicants’ personal information, including health records, criminal records, and other sensitive information.

There is no difference in whether the employer conducts its checks or hires a third party to do this, as both approaches require express written consent from applicants. However, the PDPA requires employers who conduct these checks through a third party to have a proper data processing agreement in place between them to ensure that the third-party data processor complies with the PDPA.