Payroll Services and Employee Contracts

Yes. Any registered business employing staff in Thailand must maintain formal payroll records, withhold Personal Income Tax (PIT), and register employees with the Social Security Office (SSO).

The standard Social Security contribution rate is 5% paid by the employee and 5% paid by the employer, capped at 750 THB per month each (calculated on a maximum salary base of 15,000 THB).

P.N.D.1 (Phor Ngor Dor 1) is the monthly Personal Income Tax withholding report submitted to the Thai Revenue Department by the 7th of each month (or 15th if filing electronically).

The 50 Tawi is an official annual tax certificate issued by the employer to each employee by February 15th, detailing total income earned and income tax withheld during the previous tax year.

While verbal contracts can technically be binding, written contracts in both Thai and English are essential to clearly define work terms, probation rules, and protect both employer and employee under Thai labor law.

Under the Thai Labor Protection Act, any business employing 10 or more workers is legally required to establish written company Work Rules in Thai and make them easily accessible to staff.

Probation periods typically range up to 119 days. If an employee completes 120 consecutive days of service, terminating them without cause requires mandatory statutory severance pay.

Overtime on regular workdays is calculated at 1.5 times the normal hourly wage rate. Overtime on weekly rest days or public holidays ranges from 2 to 3 times the regular rate.

Minimum wage rates vary by province across Thailand (typically between 330 THB to 370+ THB per day). Employers must ensure all local employees receive at least the regional daily rate.

Yes. Foreign nationals holding Non-Immigrant B visas and Work Permits must meet specific monthly salary thresholds based on nationality (e.g., 50,000 THB per month for Western nationals).

Severance pay scales with length of continuous service, starting at 30 days' salary for 120 days to 1 year of service, up to 400 days' salary for 20 or more years of service.

Statutory leave includes annual paid vacation (minimum 6 days after 1 year), paid sick leave (up to 30 days per year), public holidays (at least 13 days annually), and maternity leave (up to 98 days).

Employers must officially register new hires with the Social Security Office within 30 days of their official start date using form SSO 1-03.

No. The Thai Labor Protection Act strictly prohibits wage deductions except for statutory income tax, Social Security, provident fund contributions, or explicit court-ordered payments.

Late submissions to the Social Security Office incur a mandatory monthly surcharge penalty of 2% calculated on the outstanding contribution balance until fully paid.

Our legal team drafts side-by-side Thai and English contracts to ensure complete transparency for foreign employers while guaranteeing full enforceability under Thai labor courts.

Yes. All regular employees, including part-time staff and workers on probation, must be registered for Social Security coverage if they meet general labor criteria.

Employees work under direct company supervision, fixed hours, and receive monthly salaries subject to SSO and P.N.D.1. Contractors operate independently and are paid per project subject to 3% service withholding tax (P.N.D.3/53).

Outsourcing guarantees precise calculations for withholding taxes and SSO contributions, timely monthly filings, updated employment contracts, and compliance with Department of Labor regulations.

Simply contact SiamConsult for a consultation. We will evaluate your team structure, draft compliant employment contracts, and seamlessly onboard your business to our monthly payroll service.