How to run payroll in Thailand

In Thailand, most employers pay employees monthly, typically on the last working day of the month. Here's the complete payroll cycle.

Payment frequency and timing

Thai labor law requires monthly salary payments for most employees. Daily wage workers must be paid at least every 15 days, but monthly cycles are standard for salaried positions.

Payment deadlines:

• Salaries must be paid within 3 working days of the agreed pay date
• Most companies pay on the last working day of each month
• Some multinational companies pay on the 25th to align with global cycles

Late payments trigger automatic interest penalties at 15% per annum from the due date.

Bonus payments and special allowances

Thailand has specific requirements for bonus and 13th month payments that vary by company policy and employment contracts.

13th month bonus:

• Not legally mandatory but common practice in many industries
• Typically paid in December before New Year holidays
• Usually equals one month's base salary
• Subject to normal income tax rates (5-35% progressive scale for 2026)

Performance bonuses:

• Must be paid within 30 days of the performance period end
• Subject to withholding tax at standard rates
• Include in social security calculations if paid regularly

Leave and holiday pay calculations

Vacation pay follows specific calculation rules under Thai labor law.

Annual leave payout:

• Calculated at 1/30th of monthly salary per unused day
• Must be paid with final salary if not taken before termination
• Maximum carryover of 6 days to following year (company policy dependent)

Public holiday pay:

• 13 official public holidays in 2026 must be paid at regular rates
• Work on public holidays requires 200% pay (double time)
• Religious holidays may substitute based on employee's faith

Payment methods and requirements

Thai payroll law mandates specific payment methods and documentation standards.

Approved payment methods:

• Bank transfer to Thai bank account (required for salaries over ฿15,000)
• Cash payments allowed for salaries under ฿15,000
• International wire transfers require Bank of Thailand approval for amounts over ฿50,000

Currency requirements:

• All salaries must be paid in Thai Baht
• Foreign currency contracts require conversion at Bank of Thailand rates on payment date
• Exchange rate fluctuations are employer responsibility

Payslip documentation requirements

Thai payslips must include specific information in Thai language, with English translations permitted as supplements.

Mandatory payslip elements:

• Employee name, ID number, and position
• Pay period dates and payment date
• Gross salary breakdown by component
• All deductions itemized (tax, social security, provident fund)
• Net salary amount in Thai Baht
• Employer name and tax ID number

Language and delivery:

• Primary information must appear in Thai
• Electronic payslips acceptable with employee consent
• Physical copies required if employee requests
• Must be delivered within 3 days of payment

Record retention:

• Employers must maintain payroll records for 5 years
• Employee access to payslip history required upon request
• Digital storage acceptable if properly backed up and accessible

Think you just withhold income tax? Thailand adds social security contributions and workmen's compensation that catch many employers off guard.

Thailand's personal income tax uses a progressive system with rates from 0% to 35% for 2026. The good news? There's a generous tax-free allowance of ฿150,000 annually that covers many lower-income employees.

Income tax brackets

Thailand's 2026 tax brackets apply to annual taxable income after deductions:

The tax calculation is cumulative. An employee earning ฿600,000 annually pays 0% on the first ฿150,000, 5% on the next ฿150,000, 10% on the next ฿200,000, and 15% on the remaining ฿100,000.

Withholding requirements

Employers must withhold tax monthly using the withholding tax method. You're required to deduct tax from each payroll based on projected annual income.

Register for payroll tax withholding within 60 days of hiring your first employee. You'll need your company registration documents and a completed Por.Ngor.Dor.1 form.

Monthly withholding tax returns are due by the 7th of the following month. File the Por.Ngor.Dor.1 form and remit payments to the Revenue Department.

Annual reconciliation happens through employee tax returns filed by March 31, 2027 for the 2026 tax year. Employees can claim refunds for overwithholding or pay additional tax owed.

Tax registration

New employers need two key registrations before running payroll:

Withholding tax registration - Submit Por.Ngor.Dor.2 form to your local Revenue Department office. Processing takes 7-10 business days.

Social security registration - Required within 30 days of first hire through the Social Security Office. This isn't income tax but affects total payroll compliance.

You'll receive a withholding tax ID number that goes on all monthly filings. Keep your registration certificate - auditors always ask for it.

Special tax considerations

Non-resident employees face different rules. They're taxed on Thai-sourced income only, but withholding rates can be higher without proper documentation.

Tax treaties reduce withholding for qualifying expatriates. Thailand has treaties with 61 countries including the US, UK, and most EU nations. Employees must file treaty claim forms annually.

Bangkok Metropolitan Area doesn't impose additional local income taxes, unlike some other Southeast Asian countries.

Common tax mistakes

Using wrong tax tables - Many payroll systems default to old rates. Always verify you're using current 2026 brackets.

Ignoring allowances - Employees can claim additional deductions for spouse (฿60,000), children (฿60,000 each), and parents (฿30,000 each). Factor these into withholding calculations.

Late filing penalties are steep - 20% of tax owed plus 1.5% monthly interest. A ฿50,000 late payment costs an extra ฿10,000 in penalties alone.

Missing year-end certificates - Employees need withholding certificates by January 31 for their tax returns. Late issuance can trigger Revenue Department inquiries.

Employer contributions in Thailand add 10% to every salary. Budget for it.

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Contribution breakdown

Thailand keeps employer contributions simple with just two main requirements:

The Social Security Fund covers healthcare, disability, unemployment, and old-age benefits. Workmen's Compensation rates depend on your industry - office work pays 0.2%, construction pays up to 3%.

Total employer cost example

For a ฿60,000 monthly salary:

• Base salary: ฿60,000
• Social Security Fund: ฿750 (capped)
• Workmen's Compensation: ฿120 (0.2% for office work)
• Total employer cost: ฿60,870
• Cost multiplier: 1.01 (1% more than base salary)

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The Social Security cap significantly reduces costs for higher earners. Anyone earning above ฿15,000 monthly hits the ฿750 employer contribution ceiling.

Contribution caps and high earners

Social Security contributions cap at ฿750 monthly for both employer and employee. This creates substantial savings for high earners:

• ฿20,000 salary: 3.75% effective rate
• ฿50,000 salary: 1.5% effective rate
• ฿100,000 salary: 0.75% effective rate

Workmen's Compensation has no cap - you'll pay the full percentage on entire salaries.

Registration requirements

Register with the Social Security Office within 30 days of hiring your first employee. You'll need:

Foreign companies must also register their Thai representative office or branch before hiring locally.

Payment deadlines

Submit contributions online through the SSO e-Service system. The system accepts payments until 4:30 PM on the deadline date.

Workmen's Compensation follows the same 15th deadline but processes through your insurance provider, not directly with the government.

Thailand has 20 public holidays in 2026. Work on these days? Pay double.

Leave and benefits in Thailand create specific payroll obligations you need to track. The country requires generous minimums, and miscalculating vacation payouts or sick leave can lead to labor disputes.

Annual leave

Employees get 6 days minimum vacation after one year of service. That increases to 10 days after three years, then 15 days after six years. Most companies offer more to stay competitive.

Calculate vacation pay using the employee's regular daily wage. Include all regular allowances and overtime averages from the past 12 months.

Employees can carry over unused days, but you're not required to allow it. Set clear policies in employment contracts. Upon termination, you must pay out all accrued vacation days at the current daily wage rate.

Sick leave

Employees get 30 sick days per year at full pay. You pay the first 30 days directly - social security doesn't cover this.

After 30 days, social security pays 50% of wages for up to 90 additional days. Employees need a medical certificate for absences over 3 consecutive days.

Track sick days carefully. The 30-day limit resets each calendar year, not on the employee's anniversary date.

Parental leave

Maternity leave is 98 days (14 weeks) at full pay. Employees can take up to 45 days before delivery and must take at least 6 weeks after birth.

You pay the full salary during maternity leave - there's no government reimbursement. This creates a significant payroll impact for smaller companies.

Paternity leave is 15 days at full pay, which you also fund directly. Fathers must take this within 60 days of the birth.

Public holidays 2026

Work on public holidays requires double pay (200% of regular wages). Most businesses close instead of paying the premium.

Mandatory benefits affecting payroll

Severance pay creates ongoing liability. Employees get 30 days' wages after 120 days of service, increasing to 300 days' wages after 10+ years. Calculate this as a monthly accrual for accurate financial reporting.

Social security contributions are 5% each from employee and employer, capped at ฿750 monthly per party. Workmen's compensation adds 0.2-1% of payroll depending on industry risk.

Provident fund isn't mandatory but offers tax advantages. If you establish one, both employee and employer contributions (3-15% each) reduce taxable income.

Employment contracts in Thailand must include specific salary breakdowns, work hours, and termination procedures or they're legally invalid. The Ministry of Labour requires contracts in Thai language, and missing mandatory clauses can void your entire employment agreement.

Here's what you need to stay compliant with Thailand's payroll requirements in 2026.

Monthly filing requirements

You'll submit Personal Income Tax (PIT) withholding by the 7th of each month following the pay period. File through the Revenue Department's online portal at rd.go.th using Form Por.Ngor.Dor.1.

Social Security Fund (SSF) contributions are due by the 15th of each month. Submit Form SSO.01-03 electronically through the Social Security Office portal at sso.go.th.

Workmen's Compensation Fund payments follow the same 15th deadline as SSF, filed through the same portal with Form WCF.01.

Late filing penalties start immediately:

• PIT withholding: ฿200 per day plus 1.5% monthly interest
• SSF contributions: ฿500 per day plus 2% monthly penalty
• Workmen's Compensation: ฿100 per day

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Annual reporting

Year-end tax reconciliation happens by March 31st, 2027 for the 2026 tax year. Submit the annual withholding tax return (Form Por.Ngor.Dor.54) showing total wages paid and taxes withheld.

You must provide individual tax certificates to employees by February 28th, 2027. Use Form Por.Ngor.Dor.1 Kor summarizing each employee's annual income and tax withholdings.

SSF annual reconciliation is due by January 31st, 2027. This reconciles monthly contributions with actual wages paid throughout 2026.

The Revenue Department audits approximately 15% of employers annually, focusing on:

• Proper tax withholding calculations
• Complete employee documentation
• Accurate benefit valuations
• Foreign employee compliance

Employee documentation

Employment contracts must include:

• Detailed job description and duties
• Base salary and allowance breakdown
• Working hours (maximum 8 hours daily, 48 hours weekly)
• Overtime calculation method
• Leave entitlements by category
• Termination notice periods
• Disciplinary procedures

Payslips require these mandatory elements:

• Employee name and ID number
• Pay period dates
• Base salary and all allowances (itemized)
• Overtime hours and rates
• All deductions with descriptions
• Net pay amount
• Employer registration number

Keep payroll records for 5 years including contracts, payslips, tax withholding certificates, and time records. The Ministry of Labour can request these during inspections with 24-hour notice.

All documentation must be available in Thai language. English versions are acceptable as supplements but won't satisfy legal requirements alone.

What are the penalties?

Regulatory bodies

Revenue Department handles all tax compliance including PIT withholding and corporate income tax. Contact them at 1161 (hotline) or visit rd.go.th for online filing.

Social Security Office manages SSF contributions, workmen's compensation, and unemployment insurance. Their hotline is 1506 with online services at sso.go.th.

Ministry of Labour oversees employment law compliance, work permits, and labor relations. Regional offices handle inspections - contact your provincial office directly.

Bank of Thailand regulates foreign exchange transactions for international payroll. Visit bot.or.th for current foreign exchange requirements affecting salary payments to overseas accounts.

Each agency operates independent online portals requiring separate registration. Set up accounts early since approval can take 5-10 business days.

2026 brought several important payroll changes to Thailand. Here's what you need to update.

Minimum Wage Increase - Effective January 1, 2026

Thailand's minimum wage increased to ฿400 per day nationwide, up from ฿370 in 2025 - an 8.1% jump that affects most entry-level positions.

The increase applies to all employees regardless of nationality or work permit status. You'll need to adjust base salaries for any workers earning below the new threshold and update your payroll calculations immediately.

Social Security Contribution Changes - Effective January 1, 2026

The maximum monthly earnings subject to social security contributions increased to ฿16,500, up from ฿15,000 in 2025.

This means maximum monthly contributions are now ฿825 (split equally between employer and employee at 5% each). The minimum contribution base remains at ฿1,650 monthly.

Personal Income Tax Bracket Adjustments - Effective January 1, 2026

Thailand adjusted several tax brackets to account for inflation:

The changes reduce tax burden for middle and high earners. Update your withholding calculations to avoid over-deducting from employee paychecks.

Upcoming Changes

Digital Nomad Visa Tax Rules - Effective July 1, 2026

New tax regulations for Digital Nomad Visa holders will require different withholding calculations for qualifying remote workers. The Revenue Department will release detailed guidelines by March 2026.