Employer of Record in Thailand: 2026 Cost and Compliance Guide

Thailand's employment rules are national, under the Labour Protection Act, while the minimum wage is set by area: THB 400 a day in Bangkok. Statutory employer contributions are low, because social security is charged on wages of no more than THB 17,500 a month, but severance pay is substantial, at up to 400 days' pay.

An Employer of Record (EOR) can employ your team under Thai law, registering them with the Social Security Office and running payroll, without you forming a Thai company, which for a foreign-majority company can mean a Foreign Business Licence.

One rule shapes EOR arrangements: under section 11/1 of the Labour Protection Act, a business that has someone supply workers for work that is part of its own operations is deemed their employer, and must give them fair benefits without discrimination. This guide covers costs, rules, providers and when to set up your own entity. Figures link to official sources. We do not test or use the providers listed; see our methodology.

An Employer of Record in Thailand employs staff for foreign companies. It signs the Thai employment contract, registers the employee with the Social Security Office, pays into the Social Security Fund and the Workmen's Compensation Fund, withholds personal income tax, and handles leave and termination under the Labour Protection Act.

Section 11/1 of the Act applies where a business operator has a person, other than an employment agency, supply workers for work that is part of its production process or business, whether or not that person supervises the work or pays the wages. The operator is then deemed the employer of those workers, and must give contract workers doing the same work as its direct employees fair benefits and welfare without discrimination.

If you have a Thai business and the EOR's employee works in it, that rule can make you their employer under Thai law. Ask each provider how its model fits section 11/1, and treat the benefits you give your own staff as the benchmark for an EOR hire doing the same work.

New to EORs? Our guide to what an Employer of Record is answers the 30 most common questions, from who the legal employer is to what happens if a provider fails.

Section 11/1 was added to the Labour Protection Act in 2008. It applies where a business operator has a person who isn't running an employment agency business find people to do work that is part of the operator's production process or business. It doesn't matter whether that person supervises the work or pays the wages: the operator is deemed the employer of the people doing the work.

The operator must also make sure that contract workers doing the same kind of work as its directly employed staff get fair benefits and welfare without discrimination.

For an EOR arrangement, the question is whether the hire's work is part of a business you operate in Thailand. If you have no Thai operation and the person works for your company abroad, ask the provider how it reads the section for your case.

Questions to ask a provider

Thai employment cost has four layers: gross salary, social security (5% of wages up to THB 17,500 a month), the Workmen's Compensation Fund (paid by the employer alone, on wages up to THB 240,000 a year), and the EOR fee. Budget separately for severance, which can reach 400 days' pay.

Because both contributions are capped, statutory costs are a small share of professional salaries. The EOR fee is usually the biggest add-on.

Annual cost at example salaries

What these figures include and exclude

• The social security wage ceiling rises in steps under the 2025 Ministerial Regulation: THB 17,500 a month for 2026–2028, THB 20,000 for 2029–2031 and THB 23,000 from 2032, so the maximum employer contribution rises from THB 875 to THB 1,000 and then THB 1,150 a month.
• The Workmen's Compensation Fund rate depends on the business type, from 0.2% to 1.0% of wages; ask the EOR which rate applies to its registration.
• Overtime on working days is paid at at least 1.5 times the hourly rate, work on a holiday at an extra 1 times (2 times for staff not paid for holidays), and overtime on a holiday at 3 times. These are not included above.
• Employee social security contributions (5% up to the same ceiling) and personal income tax are deducted from pay and are not employer costs.

Estimate your own cost

Enter a salary to see the estimated annual cost, including mandatory employer contributions and an EOR fee. Change the fee to match the quotes you receive. For worked examples at four salary levels, see cost to hire an employee in Thailand.

Thai employment is governed by the Labour Protection Act B.E. 2541 (1998), most recently amended by Act No. 9, in force since December 2025. Social security is under the Social Security Act.

Supplied workers (EOR relevance)

Where a business has someone other than an employment agency supply workers for work that is part of its production process or business, the business is deemed their employer, whether or not that person supervises or pays them, and must give them fair benefits and welfare without discrimination compared with its direct staff doing the same work.[1]

Labour Protection Act s. 11/1, added in 2008.

Notice periods

An indefinite contract can be ended by written notice given at or before a pay date, to take effect on the next pay date, but no more than 3 months' notice is required. A probationary contract counts as indefinite. The employer can instead pay wages up to the date the notice would have taken effect.[1]

Labour Protection Act ss. 17 and 17/1. A fixed-term contract ends at its term without notice. No notice is needed for dismissals under s. 119 (such as dishonesty, wilful damage or gross negligence).

Severance pay

An employee dismissed after at least 120 days' continuous service gets severance of at least 30 days' pay (120 days to 1 year), 90 days (1–3 years), 180 days (3–6 years), 240 days (6–10 years), 300 days (10–20 years) or 400 days (20 years or more).[1]

Labour Protection Act s. 118. The end of a fixed-term contract counts as dismissal unless the work is a specific project outside the employer's normal business, occasional or seasonal work, completed within 2 years under a written contract. Retirement counts as dismissal (s. 118/1). No severance is due for dismissals under s. 119, such as dishonesty, wilful damage or gross negligence.

Working time

Normal hours may not exceed 8 a day and 48 a week (7 and 42 for work hazardous to health). Overtime on a working day needs the employee's consent each time and is paid at at least 1.5 times the hourly rate; overtime on a holiday is paid at 3 times.[1]

Labour Protection Act ss. 23, 24, 61 and 63. Work on a holiday earns an extra 1 times the hourly rate for employees paid for holidays, or 2 times for those who aren't (s. 62).

Annual leave

At least 6 working days of paid annual leave after a year's continuous service. The employer may give pro rata leave in the first year, and leave can be carried forward by agreement.[1]

Labour Protection Act ss. 30 and 56.

Public holidays

At least 13 paid traditional holidays a year, including National Labour Day, chosen from official holidays and religious or local holidays and announced in advance. A holiday falling on a weekly rest day is moved to the next working day.[1]

Labour Protection Act ss. 29 and 56. Employees also get at least one weekly rest day (s. 28).

Sick and personal leave

Sick leave as needed, paid for up to 30 working days a year; a medical certificate can be required for 3 or more days. At least 3 days a year of paid leave for necessary personal business.[1]

Labour Protection Act ss. 32, 34, 57 and 57/1.

Maternity and paternity leave

Up to 120 days' maternity leave per pregnancy, including holidays, with the employer paying wages for up to 60 days. An employee can take up to 15 days' paid leave to help a spouse who has given birth, within 90 days of the birth. A mother whose baby is ill or has a disability can take up to 15 more days at 50% pay.[2]

Labour Protection Act ss. 41, 41/1, 59, 59/1 and 59/2, as amended by Act No. 9 B.E. 2568, published 7 November 2025 and in force 30 days later. Before that, maternity leave was 98 days with 45 days paid by the employer.

Foreign employees

Foreigners need a work permit issued by the Department of Employment to work in Thailand. Employing a foreigner without one is an offence, with fines of THB 10,000–100,000 per worker, according to the Ministry of Labour.[8]

Royal Ordinance on the Management of Foreign Workers B.E. 2560, as amended, as described by the Ministry of Labour in 2018.

How Thailand compares

• EOR pricing in Thailand and other countries: Lowest published provider fee, employer costs and the monthly total.
• Employer social security: how Thailand compares: Every mandatory employer contribution, with rates and ceilings.
• Severance pay: how Thailand compares: What the law requires an employer to pay when employment ends.
• Notice periods: how Thailand compares: Minimum employer notice, and how it grows with service.
• Minimum wage: how Thailand compares: Official rates, annual equivalents and a US-dollar comparison.
• Annual leave: how Thailand compares: Statutory minimum leave and public holidays, country by country.
• Employer pension contributions by country: Rates, earnings ceilings and scheduled increases.
• EOR labour hire rules by country: Where an EOR falls under staff-leasing licences or time limits.

These EOR providers publish a page about employing in Thailand. Prices are their own published starting rates in USD; we haven't checked whether any of them charges more in Thailand.

Also ask how the provider's model fits section 11/1, whether it can sponsor work permits for foreign hires, and how it funds severance.

Compare providers for Thailand

• RemoFirst vs PlayrollIn Thailand: US$199 vs US$399 a month (published starting prices).
• Remote vs Atlas HXMIn Thailand: US$599 vs US$599 a month (published starting prices).
• Oyster vs Globalization PartnersIn Thailand: US$699 vs US$599 a month (published starting prices).
• Playroll vs Atlas HXMIn Thailand: US$399 vs US$599 a month (published starting prices).

For Thailand-specific selection criteria and a shortlist, see best EOR providers in Thailand. For each provider's products and pricing model, see the provider directory.

Setting up your own presence usually means a Thai limited company. Under the Foreign Business Act, a company in which foreigners hold at least half the shares is itself a foreigner (s. 4), and may operate the businesses in List Three, which include "other service businesses", only with permission from the Director-General of the Department of Business Development (s. 8(3)).

A foreigner's minimum capital to start a business is at least THB 2 million, or at least THB 3 million for a business that needs permission under the Act's lists (s. 14). Running costs include accounting, audit, tax filings, payroll and social security registration.

What a team costs through an EOR

Annual cost of a team of mid-level professionals on THB 600,000 each, with statutory employer costs from our cost model and an EOR fee of THB 20,114 per employee per month (a common published starting price of US$599). Providers may price differently for larger teams, so ask for a quote. US-dollar amounts use the US Treasury rate of 33.58 THB per US$1 (30 September 2026).

The salaries and employer costs are the same whoever employs the team. The difference is the EOR fees: THB 1,206,840 a year for 5 employees, THB 6,034,200 a year for 25 employees and THB 12,068,400 a year for 50 employees. A Thai entity becomes cheaper once running it, including payroll, costs less than that.

Work out your own break-even with the EOR vs entity calculator, or see the step-by-step method in EOR vs local entity: a break-even framework.

1. 1

   Define the role, salary and locationDay 0

   Agree a monthly salary, where the employee will work (which sets the minimum wage), any year-end bonus, and leave above the statutory minimum.

2. 2

   Compare itemised quotes1–3 days

   Request Thailand quotes covering the fee, deposit, contributions, severance funding, work permit support for foreign hires, and offboarding. Use the estimator to sanity-check totals.

3. 3

   Check the employment model

   Ask how the provider's model fits section 11/1 and whether you could be deemed the employer.

4. 4

   Contract and onboardingDepends on the provider and permits

   The EOR issues a Thai employment contract. Agree any probation in writing; a probationary contract counts as indefinite for notice. Foreign hires need a work permit before they start.

5. 5

   Ongoing administrationMonthly

   Monthly payroll, social security contributions, annual Workmen's Compensation Fund contributions and personal income tax withholding.

Rates and rules on this page are based on the following official sources. Numbers in brackets in the tables above link to these entries.

1. 1
   Labour Protection Act B.E. 2541 (1998), consolidated text to Act No. 7 (2019)

   Office of the Council of State (Krisdika), hosted by the Ministry of Labour

   Ss. 11/1 (supplied workers), 17 and 17/1 (notice), 23–24 and 61–63 (hours and overtime), 28–30 (rest days, holidays, annual leave), 32, 34, 57 and 57/1 (sick and personal leave), 118–119 (severance).

2. 2
   Labour Protection Act (No. 9) B.E. 2568 (2025)

   Royal Gazette (Ratchakitcha), Vol. 142 Part 74 Kor, 7 November 2025

   Maternity leave of up to 120 days with up to 60 days paid by the employer (ss. 41 and 59), 15 days' extra leave at 50% pay for an ill or disabled newborn (ss. 41 and 59/1), and 15 days' paid leave to help a spouse (ss. 41/1 and 59/2); in force 30 days after publication.

3. 3
   Ministerial Regulation on the minimum and maximum wages used to calculate contributions of insured persons under section 33, B.E. 2568

   Royal Gazette (Ratchakitcha), Vol. 142 Part 81 Kor, 12 December 2025

   In force 1 January 2026: THB 1,650–17,500 a month for 2026–2028, THB 1,650–20,000 for 2029–2031 and THB 1,650–23,000 from 2032.

4. 4
   ครม. เห็นชอบลดส่งเงินสมทบประกันสังคม 6 เดือน (normal rate of 5% each)

   Government Public Relations Department (Thailand)

   States the normal Section 33 rate of 5% each for employer and employee, and a temporary 3% rate for nine southern provinces from December 2025 to May 2026.

5. 5
   กองทุนเงินทดแทน (Workmen's Compensation Fund)

   Ministry of Labour (Thailand)

   Employer-only contributions of 0.2–1.0% of wages, counting no more than THB 240,000 a year per employee.

6. 6
   Notification of the Wage Committee on Minimum Wage Rate (No. 14), unofficial translation

   Ministry of Labour (Thailand)

   THB 337–400 a day by area from 1 July 2025; THB 400 in Bangkok and five other areas and nationwide for hotels in categories 2–4 and service establishments. Published in the Royal Gazette on 1 July 2025.

7. 7
   Foreign Business Act B.E. 2542 (1999), translation

   Department of Business Development, hosted by the Board of Investment

   S. 4 (a company at least half foreign-owned is a foreigner), s. 8(3) and List Three (21) (other service businesses need permission), s. 14 (minimum capital of THB 2 million, or THB 3 million for businesses needing permission).

8. 8
   Employers employ foreigners without work permits: illegal

   Ministry of Labour (Thailand)

   Foreign workers must have a work permit issued by the Department of Employment; fines of THB 10,000–100,000 per worker for employers (2018).

Thailand's employer contributions come to under 2% of a THB 600,000 salary, because social security stops at THB 17,500 a month, but severance of up to 400 days' pay and, since December 2025, 60 days of employer-paid maternity leave are real costs to plan for.

The rule to raise with every provider is section 11/1: if your hire works in a business you run in Thailand, you can be deemed their employer and must match your own staff's benefits. For foreign hires, confirm work permit support first.

For a growing team, compare against your own entity with our EOR vs local entity guide, and see Vietnam, Malaysia and the Philippines for other Southeast Asian markets.