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Global Payroll Team
Written by Global Payroll Team
Last updated May 7, 2026
Expert Reviewed
Payroll in Thailand
Tax in Thailand
Immigration in Thailand

Thailand map

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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 also requires employers to maintain employment records and comply with statutory leave, wage payment, and holiday rules.

Main Industries

Automobiles and automotive parts, financial services, electric appliances and components, tourism, electronics, food processing

GDP Growth

2.5%

Dates & Numbers

dd/mm/yyyy

Official State Name

Kingdom of Thailand

Population

65.9 million

Capital

Bangkok

Major Languages

Thai

Currency

Thai Baht

Internet Domain

.th

International Dialing Code

+66

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Thailand
Bangkok, TH
5:49 pm, May 17, 2026
34°C
overcast clouds
55 %
Wind Gust: 16 mph
Clouds: 100%
Sunrise: 5:51 am
Sunset: 6:37 pm

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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 at least 6 working days after one year of service

Annual Leave

Employees receive paid sick leave of up to 30 working days per year

Sick Leave

98 days of maternity leave, with 45 days paid by the employer. There is no general statutory paternity leave under the Labor Protection Act

Maternity & Paternity Leave

At least one pay period or 30 days for monthly-paid employees

Employee Termination

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

13th-month salary

400 THB per day in Bangkok and certain hotel and entertainment businesses, with other provinces subject to lower daily rates under the 2025 wage notification

Minimum Wage

Overtime payment of at least 1.5x the employee’s ordinary hourly rate for overtime on working days

Overtime

Employees paid monthly are entitled to statutory severance ranging from 30 to 400 days’ wages depending on length of service

Severance Pay

PEO Thailand

Mercans PEO (Professional Employer Organization) services in Thailand provide a comprehensive HR outsourcing solution for foreign companies to establish a local presence, compliantly hire and manage employees, handle HR, payroll, benefits, tax compliance, and other administrative tasks, while reducing costs and administrative burden.

Through our PEO in Thailand, we provide services that are flexible and cost-effective for companies seeking to outsource their HR and payroll processes. As a Professional Employer Organization, Mercans offers a range of services including employee benefits, payroll administration, and compliance with Thailand employment laws. By entrusting their HR and payroll needs to Mercans, companies can focus on their core business activities and ensure a smooth and efficient HR operation.

Partnering with our PEO in Thailand presents the fastest and most efficient way to enter the Thailand market.

Partnering with our Thailand PEO presents the swiftest and most economical avenue to step into the Thailand market.
Contact us to explore how PEO Thailand solutions from Mercans can support your seamless expansion!

Benefits of Hiring an Employee through a PEO Thailand

Are you planning to expand your business operations into Thailand? Collaborating with a Professional Employer Organization (PEO) in Thailand can provide a strategic advantage by simplifying your entry into the market while ensuring full compliance with local employment laws. Here are the top benefits:

Fast-Track Market Entry

Hiring through a PEO in Thailand enables you to quickly establish a workforce without the need to set up a local legal entity. This accelerates your market entry, allowing you to begin operations and generate revenue sooner.

Compliance with Local Regulations

Thailand’s labor laws and tax regulations can be intricate and subject to change. A local PEO is well-versed in these regulations and ensures your employment practices remain fully compliant, reducing legal risks and penalties.

Cost-Efficient Expansion

Setting up a company in Thailand involves significant administrative and legal expenses. A PEO offers a more economical solution by handling payroll, benefits, and employee onboarding, minimizing your overhead costs.

Reduced Legal and Operational Risk

By leveraging a PEO’s local expertise, your company avoids common pitfalls related to employee classification, termination procedures, and benefit requirements. This risk mitigation helps maintain a stable and compliant operation.

Access to Skilled Local Talent

A PEO in Thailand can connect you with highly qualified local professionals who understand the regional business landscape. This access is crucial for building a team that can drive your success in the Thai market.

Streamlined HR and Payroll

Managing HR functions in a new country can be complex. A PEO centralizes and simplifies these tasks, covering everything from payroll processing to benefits administration, so you can stay focused on strategic priorities.

Scalable Workforce Management

As your business grows in Thailand, your PEO can easily scale your workforce up or down based on your needs. Whether you’re testing the market or expanding aggressively, this flexibility supports sustainable growth.

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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, holidays, leave, 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 13 official public holidays per year and at least 6 working days of annual leave after one year of service, in accordance with the Labor Protection Act. Additional leave may be provided by employers under policy or contract.

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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13 days

Total number of public holidays

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48

Working hours per week

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No entitlement

Total number of days for Compassionate & Bereavement Leave

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Immigration

For foreign employees in Thailand, immigration rules generally require a valid Non-Immigrant visa and work permit to legally work in the country. The process typically involves the employer supporting the work permit application and the employee applying for the appropriate visa and stay extension.

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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. Long-term work-related stay permissions are commonly granted on a one-year basis and renewed subject to continued eligibility.

Work Permit Validity

Commonly 1 year

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!

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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    FAQs

    What is an Employer of Record (EOR) in Thailand and how does it work for foreign companies?

    An Employer of Record in Thailand enables global companies to hire employees locally without setting up a legal entity. The EOR acts as the legal employer, managing contracts, payroll, taxes, benefits, and compliance with Thai labor and employment laws while the client oversees daily operations.

    Why should businesses use an EOR instead of establishing a legal entity in Thailand?

    Working with an EOR allows international companies to enter the Thai market quickly and cost-effectively. It removes the need for complex entity registration and reduces administrative costs while ensuring full compliance with local employment and tax requirements.

    How does payroll outsourcing in Thailand ensure compliance with labor and tax regulations?

    Mercans’ payroll outsourcing services in Thailand ensure accurate salary processing, income tax deductions, and social security contributions in accordance with Thai laws. All payroll procedures follow national labor and tax standards to maintain complete compliance.

    Can an Employer of Record in Thailand hire employees and manage work permits for international companies?

    Yes. An EOR in Thailand can hire both local and foreign employees, manage visa and work permit applications, and ensure compliance with Thai labor and immigration regulations.

    What are the main benefits of using EOR and payroll services in Thailand for global expansion?

    Key benefits include fast and compliant market entry, lower setup and administrative costs, full legal and tax compliance, access to expert local HR and payroll support, and flexibility to scale your workforce without forming a local entity.

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