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Thailand has a very low-cost SSF (capped at THB 750/month), mandatory statutory severance pay on termination, work permit requirements for foreign nationals, and monthly PIT withholding. Rippling EOR handles SSO, Revenue Department, and work permit compliance.
Thailand is a Southeast Asian upper-middle-income economy with strengths in manufacturing, tourism, agriculture, and a growing technology sector in Bangkok. Thailand is a popular destination for regional headquarters and shared services. EOR is particularly attractive for technology, fintech, and professional services companies entering Thailand without forming a local Co., Ltd. entity. Work permits are required for all non-Thai employees.
Setting up a Thai Co., Ltd. requires DBD registration, minimum THB 2M registered capital (for 50%+ foreign ownership), work permit quota compliance (4:1 Thai-to-foreign ratio), and SSO/Revenue Department registration. EOR eliminates entity formation, work permit quota management, and most registration complexity. EOR is strongly recommended for companies with fewer than 10 Thai employees or where work permit sponsorship for foreign nationals is needed quickly.
SSF employee: 5% on salary capped at THB 15,000/month (max THB 750/month). PIT (income tax) withheld monthly by employer: progressive 0–35% on 7 brackets. Total employee deductions vary; PIT is the primary variable.
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SSF employer: 5% on salary capped at THB 15,000/month (max THB 750/month per employee). WCF: 0.2–1% annually (risk-class dependent). Total employer on-cost is very low by regional standards due to the SSF cap. Statutory severance pay must be budgeted separately (triggered on termination without cause).
PIT progressive 7-bracket: 0% (up to THB 150,000); 5% (THB 150,001–300,000); 10% (THB 300,001–500,000); 15% (THB 500,001–1M); 20% (THB 1–2M); 25% (THB 2–5M); 35% (above THB 5M). Monthly withholding by employer; annual return by March 31.
Annual leave: 6 working days minimum (after 1 year continuous service). Sick leave: up to 30 working days paid. Maternity: 98 days (employer pays first 45 days at full salary; SSF pays next 45 days at 50% of salary). Public holidays: 13 national holidays.
Statutory severance: 30 days (120 days–1 year) to 400 days (20+ years) of average wages — payable on termination without cause. Notice: one pay period (typically 30 days). Unfair dismissal: additional compensation. 119-day probation is common to avoid the 120-day minimum severance threshold. Rippling EOR manages terminations and severance calculations.
Non-Thai employees require both a non-immigrant B visa and a work permit. Rippling EOR sponsors work permits through its Thai entity. The 4:1 Thai-to-foreign employee ratio is managed at EOR entity level. Processing time: 2–4 weeks. Work permit and visa must be obtained before starting work.
Statutory: SSF (employer 5%, capped THB 750/month), WCF accident insurance, 6 days annual leave (after 1 year), 98 days maternity (45 days employer-paid + 45 days SSF), 30 days sick leave paid, 13 public holidays.
Market-standard: Group health insurance (near-universal), provident fund (voluntary, employer 5–15%), annual bonus (1–3 months typical), transport/meal allowance. Bangkok is a competitive talent market for technology and finance.
Rippling EOR Thailand operates through a local Thai entity. Key Thailand-specific handling: SSO registration and monthly SSF contributions, Revenue Department PIT withholding and monthly remittance, work permit sponsorship for foreign nationals, WCF annual declaration, statutory severance pay calculation and management on termination.
Thailand requires work permits for all non-Thai nationals performing work in Thailand. Rippling EOR sponsors work permits through its Thai entity. The work permit is tied to the EOR entity as employer of record. The 4:1 Thai-to-foreign ratio (4 Thai employees per foreign work permit holder) is managed at the EOR entity level, not the client company level — this is a key advantage of EOR in Thailand.
Thailand's Labor Protection Act mandates severance pay on termination without cause: 30 days (120 days–1 year) up to 400 days (20+ years) of average wages. Severance must be paid on the effective termination date. Rippling EOR calculates statutory severance and manages payment on termination. This is a key cost to budget for all Thai hires — there is no accrual mechanism; the liability grows with tenure.
Thailand's SSF is capped at THB 15,000/month of salary — both employer and employee contribute 5%, with a maximum of THB 750/month each. This is extremely low by regional standards. SSF covers illness, maternity, disability, unemployment, old age, and death. Rippling EOR remits SSF contributions to the SSO by the 15th of each month.
Thailand requires PIT withholding by employers on a monthly basis. The withholding is calculated on the employee's estimated annual income and withheld proportionally each month. Employers remit PIT to the Revenue Department by the 7th of the following month (15th for e-filing). Annual PIT reconciliation is filed by March 31. Rippling EOR handles all PIT calculation, withholding, and Revenue Department remittances.
