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Thailand has a capped Social Security Fund (THB 750/month max per employer), tiered severance pay obligations, and monthly PIT withholding due by the 7th. Provincial minimum wages vary. Rippling handles SSO, Revenue Department, and WCF compliance.
Thailand is a Southeast Asian upper-middle-income economy with strengths in manufacturing (automotive, electronics), tourism, agriculture, and a growing technology and digital economy sector in Bangkok. Bangkok is by far the primary business hub. Thailand uses the Thai baht (THB). Thailand is a popular destination for regional headquarters and shared services operations due to competitive costs, infrastructure, and a large English-capable professional workforce.
| Contribution | Rate | Notes |
|---|---|---|
| Social Security Fund (SSF) | 5% | On salary capped at THB 15,000/month; max THB 750/month |
| Workmen's Compensation Fund (WCF) | 0.2–1% | Risk-class dependent; paid annually |
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| Contribution | Rate | Notes |
|---|---|---|
| Social Security Fund (SSF) | 5% | On salary capped at THB 15,000/month; max THB 750/month |
| Income tax (PIT) | 0–35% | Progressive 7-bracket system; withheld monthly by employer |
| Annual Income (THB) | Rate |
|---|---|
| Up to 150,000 | 0% |
| 150,001–300,000 | 5% |
| 300,001–500,000 | 10% |
| 500,001–1,000,000 | 15% |
| 1,000,001–2,000,000 | 20% |
| 2,000,001–5,000,000 | 25% |
| Above 5,000,000 | 35% |
Monthly PIT withholding remitted to Revenue Department by the 7th (15th online). Annual PIT return filed by March 31.
Severance pay mandatory by length of service: 30 days (120 days–1 year) up to 400 days (20+ years). Notice: at least one pay period (typically 30 days). Unfair dismissal: additional compensation. Termination without cause requires full statutory severance.
Thailand's Social Security Fund (SSF) is capped at THB 15,000/month of salary: both employer and employee contribute 5% each, with a maximum monthly contribution of THB 750 each. This makes Thailand's social security cost very low by regional standards — approximately THB 750/month per employee regardless of salary. SSF covers illness, maternity, disability, unemployment, old age, and death benefits.
Thailand's Labor Protection Act mandates severance pay based on length of service: 30 days (120 days–1 year), 90 days (1–2 years), 180 days (2–3 years), 240 days (3–6 years), 300 days (6–10 years), 400 days (10–20 years), 400 days (20+ years from 2017 amendment). Note: Thailand also introduced a 400-day cap for employees with 20+ years of service. Severance must be paid at the effective date of termination.
Thailand's minimum wage varies by province: Bangkok and surrounding provinces: THB 363/day (October 2023). Other provinces: THB 328–345/day. Thailand adjusts minimum wages regionally; employers must apply the rate for the province where the work is performed.
Thailand requires employers to withhold Personal Income Tax (PIT) monthly from employee salaries and remit to the Revenue Department by the 7th of the following month (or 15th for online filing). PIT is progressive: 0–35% over 7 brackets. Employees with income below THB 150,000/year are exempt. Rippling handles monthly PIT withholding and Revenue Department remittances.
