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Mercans offers complete payroll, PEO and HR services in Thailand

Mercans is a leading provider of payroll, PEO and HR services in Thailand. The company offers a range of comprehensive solutions designed to meet the unique needs of businesses operating in the region. Whether you are a small start-up or a large multinational corporation, Mercans has the expertise and experience to help you manage your payroll, PEO and HR needs in a hassle-free and efficient manner. With a team of highly trained professionals, advanced technology and a commitment to delivering exceptional customer service, Mercans is the ideal partner for businesses looking to simplify their payroll, PEO and HR processes in Thailand.

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Doing Business in Thailand

Doing business in Thailand can be both exciting and challenging. The country offers a large and growing market, with a diverse range of industries and a supportive business environment. The Thai government has implemented policies to attract foreign investment, and there is a strong focus on developing key economic sectors such as tourism, manufacturing and technology. However, navigating the local business culture and regulations can be complex, and language barriers may also present challenges for foreign companies. Despite these challenges, many businesses have found success in Thailand, and the country remains an attractive destination for investment and expansion.

Entity Registration and Incorporation Requirements

In Thailand, entity registration and incorporation requirements are governed by the Ministry of Commerce and the Department of Business Development, and include submitting a range of documentation such as business plans, identification documents, and certificates of incorporation, as well as meeting specific requirements for certain types of businesses, such as obtaining a foreign business license for foreign-owned companies.

Banking

Banking Hours: 9.30 am to 3:30 pm from Monday to Friday

Working Week

The standard working week is from Monday to Friday from 8:00 am - 5:00 pm

Labor Law

The Labor Protection Act in Thailand outlines employee rights and protections, including standard working hours, minimum wage, benefits, workplace safety, and a framework for resolving disputes. It requires employers to maintain accurate records and provide training opportunities, ensuring fair treatment and a safe work environment for employees.

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Main Industries

Automobiles and automotive parts, financial services, electric appliances and components

GDP Growth

1.1%

Dates & Numbers

dd/mm/yyyy

Official State Name

Kingdom of Thailand

Population

66.65 million

Capital

Bangkok

Major Languages

Thai

Currency

Thai Baht

Internet Domain

.th

International Dialing Code

+66

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Thailand
Bangkok, TH
8:32 am, June 25, 2024
temperature icon 29°C
light rain
Humidity 68 %
Wind Gust: 18 mph
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Payroll

Payroll in Thailand involves the calculation and payment of salaries, bonuses, and other benefits to employees. Employers are responsible for withholding and paying deductions such as income tax and social security, and then paying the net salary to employees. The process is governed by the Labor Protection Act, which outlines the rights and obligations of both employers and employees.

It is acceptable to provide employees with online payslips

Payslip

Payroll reports must be kept for 7 years

Reports

Employees receive paid annual leave of 6 days

Annual Leave

Employees receive paid sick leave of 30 days

Sick Leave

14 weeks of paid maternity leave and 15 days of paid paternity leave

Maternity & Paternity Leave

30 days

Employee Termination

There are no provisions mandated by law regarding the 13th-month salary

13th-month salary

336 BHT per day

Minimum Wage

Overtime payment of 1.5x the employee's ordinary rate of pay for the first 5 hours of overtime

Overtime

Employees paid monthly are entitled to 240 days’ pay for each year of employment for the first six years of service

Severance Pay

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Tax and Social Security

In Thailand, individuals are required to pay personal income tax on their salary income, with rates ranging from 0% to 35% depending on the amount of income earned. Employers are responsible for withholding and paying the necessary income tax to the Revenue Department. Social security in Thailand is a mandatory contribution for employees and employers, with contributions used to provide benefits such as old-age pensions, disability, and survivor benefits. The Social Security Office is responsible for collecting and administering the contributions.

Tax

In Thailand, salary income is subject to personal income tax, with rates ranging from 0% to 35% based on the amount of income earned. Employers are responsible for withholding and paying the necessary income tax to the Revenue Department.

20%

Corporate Income Tax

35%

Personal Income Tax

7%

Sales Tax

7%

VAT

Social Security

Social security in Thailand is a mandatory contribution for both employees and employers, with contributions used to provide benefits such as old-age pensions, disability, and survivor benefits. The Social Security Office is responsible for collecting and administering the contributions.

10%

Social Security Rate

5%

Social Security Rate for Employers

5%

Social Security Rate for Employees

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Employment Law

Employment law in Thailand is governed by the Labor Protection Act, which outlines the rights and obligations of both employers and employees. The act covers issues such as minimum wage, working hours, and termination of employment, and aims to ensure fair and equitable treatment of employees in the workplace.

Employment Agreement

An employment agreement in Thailand is a legally binding contract between an employer and an employee that outlines the terms and conditions of employment. This agreement typically includes details such as job responsibilities, salary, working hours, and benefits, and serves as a reference for both the employer and the employee during the course of the employment relationship.

Working condition

The working hours rules in Thailand are set by the Labor Protection Act, which states that the standard working hours for employees should not exceed 8 hours per day or 48 hours per week. The act also requires employers to provide a rest period of not less than 24 consecutive hours each week and mandates payment of overtime for any hours worked in excess of the standard working hours.

Leaves

In Thailand, employees are entitled to a minimum of 12 days of annual leave per year, in accordance with the Labor Protection Act. This leave entitlement increases with length of service, with employees who have completed one year of service entitled to at least 12 days of annual leave and employees with more than 10 years of service entitled to at least 18 days of annual leave.

Employment termination

Employment termination in Thailand is governed by the Labor Protection Act, which outlines the circumstances under which an employment relationship can be terminated, such as resignation, mutual agreement, or termination by the employer for cause.

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30 days

Minimum notice period for terminating an employee

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16 days

Total number of public holidays

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48

Working hours per week

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2 days

Total number of days for Compassionate & Bereavement Leave

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Immigration

For foreign employees in Thailand, immigration rules require a valid work visa and work permit to legally work in the country. The process for obtaining these documents typically involves the employer applying for the work permit and the employee applying for the visa, and both documents must be renewed annually.

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Residency permits

A residency permit in Thailand is a document that allows a foreign national to live and reside in the country for an extended period of time, typically tied to their employment status.

Work Permit Validity

2 years

Required Documents

Company Registration Department Certificate

List of the company’s shareholders

Factory license, if applicable

VAT certificate and filings

Withholding tax form

Social security payment filings

Employment contract

Compliant, reliable, error-free and touchless payroll in Thailand

Build the best team and hire top talent compliantly in Thailand. Get in touch with Thailand payroll outsourcing & PEO specialists for a free consultation!

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This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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