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Cost of hiring an employee in Thailand

The costs to hire employees in Thailand will vary with your company’s positions, recruitment strategies, and policies toward bonuses and supplemental benefits. Below are a few of the direct and indirect hiring costs you may incur:

One important consideration is that the unemployment rate in Thailand is incredibly low — below 1 percent for most of the past decade. Job candidates tend to have an easy time finding jobs, and qualified applicants may have their choice of offers with different businesses. Your company can improve its chances of attracting talented candidates by focusing on ways to stand apart from similar organizations — such as by offering more appealing benefits or bonuses.

For instance, in Thailand, 13th-month bonuses are optional. Still, many companies provide them as gestures of appreciation for their hard-working employees. For sales employees in Thailand, generous commission plans often replace the standard 13th-month bonus.

Your company may want to provide quality health insurance coverage to remain competitive in the job market. Thailand has a three-tiered universal health care system that provides free medical care for civil servants, private employees, and all other Thai nationals. However, the available health care facilities differ substantially in the quality of the care they offer. For this reason, many companies provide supplementary health insurance for their employees.

Many companies also offer provident funds, which promote savings by allowing employees to deposit their pre-tax earnings into a dedicated fund that they can access upon retirement or termination. Employees may deposit between 2 percent and 15 percent of their paychecks as the employer permits, and the employer contributes an equal or lesser amount.

Anti-discrimination law

Thailand’s Ministry of Labour Relations prohibits numerous forms of hiring and workplace discrimination. Employers may not discriminate against job candidates or employees for any of the following characteristics:

To minimize the appearance of discrimination, your company will want to keep its hiring processes free from questions on these topics. You should also tailor your job advertisement language so it reads inclusively for all candidates.

Wages and working hours

To some extent, working hours in Thailand are up to the company and its employees, through standard working hours cannot exceed 48 hours per week. Employees should have at least one day off per week, and they should not work more than six days in a row.

Overtime is permissible, though it may not exceed 36 hours per week. If employees work overtime on weekdays, they should receive 150 percent of their base salaries for those hours. If they work overtime on weekends, they should generally receive three times their base salary.

The minimum wage in Thailand varies by province. As of 2020, the country’s minimum wages ranged from 313 baht to 336 baht per day — about 10 to 10.80 U.S. dollars.

Legally, employees in Thailand must receive a minimum of six vacation days annually. In practice, however, most companies provide their employees with 10 to 15 days of paid vacation each year. This leave may carry into the next year if employees do not use it.

Employees in Thailand are also legally entitled to a few additional formal types of leave:

If their employers are willing, Thai employees may take a few additional leave types, including compassionate leave, hospitalization leave, marriage leave, Hajj pilgrimage leave for Muslim employees, and monkhood leave for Buddhist men.

Thai labor law also requires employers to provide employees with 30 days of paid sick leave separate from their vacation leave. A company may request a medical certificate if the employee misses three or more consecutive days of work. If employees become sick or injured because of job duties, however, they may take time off without using their sick leave.

Female employees in Thailand may take maternity leave for the birth of their children. Pregnant employees may take 98 days of paid maternity leave. The company pays 45 days, the social security fund pays 45 days, and the remaining eight days are usually unpaid, though sometimes the employer agrees to pay them. Companies may also provide paternity leave at their discretion.

In addition to this time off, paid leave in Thailand includes 13 public holidays. These add up to 15 paid days off, since Songkran, Thailand’s world-famous Buddhist New Year and water festival, lasts for three days.

Hiring practices in Thailand

Hiring someone in Thailand may be similar to hiring new employees for your parent company. Still, you will want to be aware of potential differences so you can shape your company’s practices accordingly. Below are a few best practices to keep in mind:

What does a company need to hire employees in Thailand?

Hiring new employees in Thailand can be a lengthy and complicated process, especially if your company elects to set up a subsidiary. You’ll need to decide how to incorporate, develop a budget, and learn the dozens of legal requirements you must adhere to. Establishing a business presence in Thailand is particularly complicated because of the Foreign Business Act, which restricts international operations, often requiring special permissions before international companies can start doing business in Thailand.

If you decide to set up a subsidiary, here are a few of the requirements you will need to fulfill:

An alternative option is to work with a professional employer organization (PEO), also known as an Employer of Record (EOR). A reliable global EOR will take on the administrative, legal, and human resources work of hiring new employees for you, so you’ll be able to focus on other aspects of your business. Because a good EOR already has an established presence in the country, you can skip entity setup and start hiring right away.

Connecting Professionals with The Best Organisations in Thailand

JAC Recruitment Thailand is a recruitment consultancy specialising in connecting organisations with top-tier talent in various disciplines and industries, including Banking & Financial Services, Accounting & Finance, Consultancy, Sales& Marketing, Building & Construction, Hospitality & Tourism, Chemicals, Industrial, Logistics, Automotive, FMCG, Technology & Digital, Food & Beverages, Retail and Services.

We offer a diverse range of job vacancies spanning various industries, expertise, and locations, including Bangkok, Rayong, Phra Nakhon Si Ayutthaya, Chachoengsao and other business and industrial areas across Thailand.

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From beautiful temples, stunning beaches, and rich history to affordable business costs, a growing economy, and a wealth of vital exports, several features make Thailand an attractive place for international business expansion.

As your company begins to put its teams together, you will need some familiarity with the country’s hiring processes and requirements. This guide to hiring employees will explore essential employment requirements and offer some valuable tips for hiring in Thailand.

Build international teams with Globalization Partners

When you’re ready to expand into Thailand, Globalization Partners is here to make building your teams simpler and easier. Our comprehensive, AI-driven solution allows us to shoulder the work of recruiting, hiring, and onboarding new employees, so you’ll gain the talented in-country team you need and have the time and energy to focus on your most critical business endeavors.

Request a proposal today, or contact us to learn more about how we can help.

Like what Winston Churchill once said â€œSuccess is not final, failure is not fatal. It is the courage to continue that counts.â€� Halo Risers! Kenalin, namaku Dian A Fresh graduate from University of Surabaya(UBAYA) with a degree in Accounting. Currently Iâ€™m working as a Senior Finance Accountant and Financial Controller Assistant in one of the conglomeration companies in Surabaya that focuses on several different industries, one of which is the property industry. And right now I'm currently Open to Work and in search of new opportunities in new company and community! With not only a solid foundation in finance and my unique perspective shaped by a blend of academic knowledge and practical experience, with various certifications and courses such as Brevet AB, Brevet C, Internal Audit Course and Harisenin.com Auditor and Financial Analyst Bootcamp, but also a keen desire to embrace innovation and versatility. Recognizing the importance of digital marketing and technology in today's business landscape, I am determined to expand my skill set beyond traditional accounting practices. I aim to become a more agile and well-rounded professional, capable of supporting a diverse range of work assignments. I view this journey as an opportunity to not only enhance my own capabilities but also contribute meaningfully to the company's success in an ever-evolving marketplace. Furthermore, I see myself as an integral part of my future company's growth journey, playing a key role in driving innovation, fostering collaboration, and exceeding business objectives. My goal is not only to excel in my individual role but also to inspire and empower others to unleash their full potential, creating a culture of excellence and achievement. In addition to my professional growth, I am deeply committed to personal development and giving back to the community. Whether through mentorship programs, volunteering initiatives, or industry conferences, I aspire to make a positive impact on the lives of others and contribute to the greater good. At last, our journey is not defined by the obstacles we face, but by the resilience we show in overcoming them. Stay steadfast in your pursuit of excellence, both in your career and in life. Embrace challenges as opportunities for growth, and never underestimate the power of perseverance. Strive to be the best version of yourself every day, for it is through continuous self-improvement that you will reach your fullest potential. Stay inspired, stay determined, and never lose sight of the incredible impact you can make in the world. The path may be challenging, but with unwavering dedication and belief in yourself, success is inevitable. "Embrace uncertainty, for within it lies endless opportunity." #JadiYangKamuMau Harisenin.com #motivationletter #jobopportunities #personalbranding

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Incentives to hire Thai workers

Thailand’s laws require that every business hire at least four Thai nationals per international worker. Additionally, companies that want to employ international workers must obtain permission and licensing from Thailand’s Director-General of the Department of Employment. They must also provide a guarantee against any costs and damages associated with hiring an international employee.

Additional tips for how to hire in Thailand

Here are a few more steps to hiring in Thailand for your company to consider:

Hiring remote employees in Thailand

As you add new employees to your team, your obligations in your home country may require you to interview and hire remotely. Here are a few tips for convenient, streamlined remote hiring: