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. Wages must generally be paid at least once a month, and 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 interest 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 during normal hours on a holiday: at least one extra ordinary hourly rate if the employee is entitled to holiday wages, at least twice the ordinary rate if not
• 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 filed electronically, by the 15th of the following month under the Revenue Department's current calendar. 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 - Employment income gets a 50% expense deduction, capped at ฿100,000, and every employee has a ฿60,000 personal allowance. Other allowances depend on the employee's circumstances and evidence. Factor these into withholding calculations.

Late filing penalties apply on tax owed, plus surcharges from the Revenue Department.

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

Employer social security in Thailand adds 5% of the wage base, up to ฿875 a month. Budget for it.

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 generally range from 0.2% to 1% depending on business risk, on annual wages capped at ฿240,000 per employee.

Total employer cost example

For a ฿60,000 monthly salary:

• Base salary: ฿60,000
• Social Security Fund: ฿875 (capped)
• Workmen's Compensation: ฿40 (0.2% on the capped ฿20,000 monthly wage base)
• Employee Welfare Fund: ฿150 (0.25%, from October 2026 for establishments with 10+ employees)
• Total employer cost: ฿61,065
• Cost multiplier: 1.02 (about 1.8% more than base salary)

The Social Security cap significantly reduces costs for higher earners. Anyone earning above ฿17,500 monthly hits the ฿875 employer contribution ceiling.

Contribution caps and high earners

Social Security contributions cap at ฿875 monthly for both employer and employee. This creates substantial savings for high earners:

• ฿20,000 salary: 4.375% effective rate
• ฿50,000 salary: 1.75% effective rate
• ฿100,000 salary: 0.875% 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.

Employers in Thailand must announce at least 13 public holidays each year. Work on them? What you pay depends on the employee's holiday-wage entitlement and whether the hours count as overtime.

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. The contract can provide more, and 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.

The 30-day limit is on employer-paid wages, not on how long a genuine illness can last. For an absence of three days or more, the employer may ask for a medical certificate.

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

Parental leave

Maternity leave is up to 120 days per pregnancy since 7 December 2025, with the employer paying normal wages for up to 60 days. Check the employee's separate Social Security Office benefit for the rest.

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 can take it within 90 days of the birth.

Public holidays 2026

Overtime on a public holiday must be paid at least 3x the ordinary hourly rate. Work during normal hours is paid at least one extra hourly rate, or twice the rate if the employee has no holiday-wage entitlement. 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, rising in steps to 400 days' wages after 20 years. Calculate this as a monthly accrual for accurate financial reporting.

Social security contributions are 5% each from employee and employer, capped at ฿875 monthly per party. Workmen's compensation adds 0.2-1% of payroll depending on industry risk. From 1 October 2026, the Employee Welfare Fund adds 0.25% from each side for establishments with at least 10 employees.

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 15th 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 PIT withholding, SSF contributions and Workmen's Compensation payments all attract penalties and surcharges.

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.

Revenue Department audits focus 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?

Penalties apply for late filing, late payment and incorrect withholding. They are set by the Revenue Department, the Social Security Office and the Department of Labour Protection and Welfare, so check the current schedule on its website before relying on a figure.

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.