Thai food-do you really need another reason?
Alright, if you do, the food isn't the only thing spicy in Thailand-the economy is too. This is a market full of opportunity. Let's say you decide to go for it and before you know it you're eyeing engineers in Bangkok, marketing talent in Chiang Mai, and looking into a lean back-office team to support global operations.
Then you run up against the harsh realities of international hiring-enough laws and regulations to make you sweat (even worse than those Thai chiles).
Don't worry-Pebl is here. We'll walk you through how to hire and pay in Thailand whether you're setting up a legal entity or using an Employer of Record (EOR), you'll leave knowing exactly what's involved and how to do it with confidence.
Basics of international hiring
Before you can hire anyone, you need a legal foundation. In Thailand, like most countries, that means either setting up a local entity or working with an employer of record. Both get you to the same outcome-compliant hiring-but the steps and timelines are very different.
Local entity
If you go the local entity route, you'll need to register a Thai limited company, get a tax ID, register for VAT if needed, and sign up for the Social Security Fund (SSF). Plan for 4-8 weeks minimum to get it all done.
Employer of Record
If you're not ready for that kind of setup, an employer of record lets you hire employees in Thailand without opening a local office. The EOR becomes the legal employer on your behalf handling compliance, payroll, and benefits so you don't have to.
Work permits and authorizations
If you're hiring foreign nationals in Thailand, they'll need both a non-immigrant B visa and a work permit. You (or your EOR) sponsor the application, submit required documents like degree certificates and a job offer, and complete an interview. This usually takes about four weeks. Thai nationals don't need special permits, but they do need to be registered with the SSF within 30 days of starting their job.
Common legal pitfalls to avoid
Thailand has its quirks. Miss a deadline or skip a step, and you could run into fines or labor disputes.
- Don't delay SSF registration-it must happen within 30 days of hire.
- Your employment contracts need Thai-compliant clauses around leave, notice, and severance.
- Minimum wage rates vary by province. As of 2025, the minimum wage in Bangkok is 353 THB per day (US$11).
Hiring and onboarding
Once your structure's in place, it's time to hire.
Crafting employment contracts
Thailand accepts both verbal and written contracts, but written ones are a better choice. Be sure to spell out the employee's role, salary, pay frequency, working hours, holidays, leave entitlements, and any probationary terms (which can't exceed 119 days).
Stepwise hiring timeline
A typical hiring flow looks like this: job post → interviews → offer letter → contract signed → SSF registration → onboarding and payroll setup. From job posting to start date, give yourself three to four weeks.
Employee pay, payroll, and statutory benefits
Payroll in Thailand isn't rocket science, but it does come with local rules you'll need to follow closely.
Minimum wages, salary structure, and currencies
Salaries are paid in Thai Baht (THB) and usually monthly. While bonuses and transportation stipends aren't required by law, they're commonly offered. Keep in mind that the minimum wage varies depending on the province.
Social Security contributions and income tax
Employers and employees both contribute 5% of monthly wages to the SSF, up to a maximum of 750 THB (US$23.65) per month. You're also on the hook for withholding and remitting income tax based on progressive tax brackets, which you can find at The Revenue Department of Thailand.
Payroll processing methods and record-keeping
You've got two options: run payroll in-house or outsource to a provider or EOR. In-house gives you more control but also more responsibility-from registering bank payments to filing tax and SSF reports. Outsourcing simplifies things, bundling compliance, payments, and reporting into one monthly invoice. Either way, keep detailed payroll records for at least seven years.
Benefits, leave, and separation
Hiring is only the beginning. You also need to know what your responsibilities are when someone takes time off or leaves altogether.
Leave types and employee benefits
The baseline under Thai labor law is six days of paid annual leave (after 12 months), 30 days of sick leave (with a doctor's note after three), 13 public holidays, and 98 days of maternity leave (45 paid). Many employers offer additional perks like health insurance, though it's not legally required.
Stay current by checking Thailand's Department of Labour Protection and Welfare.
Termination and severance procedures
You must provide written notice before terminating an employee, usually one pay cycle in advance. Severance is mandatory unless the termination is for cause and scales with tenure: up to 300 days' pay for long-time employees. Final pay and unused leave must be settled within three days of termination.
Tips and resources for a successful application
Want to avoid missteps? Start by mapping your hiring timeline and giving yourself room for paperwork delays. Double-check your contracts for Thai-specific clauses, and don't assume what works in your home country will translate here. Or you can partner with the experts.
A smarter path to hiring in Thailand
Hiring in Thailand can be tricky. Start with a clear plan: do you need a local entity, or is an EOR the faster route? From there, the next steps are obvious-create compliant contracts, get payroll in order, and make sure you're tracking leave and termination policies properly. If that sounds like a lot… well, it can be if you're new to the region.
So why not let Pebl help?
Our employer of record service acts as the legal employer for your international team. While you focus on managing and growing your people, we handle the backend employment contracts, payroll, taxes, benefits, and compliance. That means you get to hire in days, not months.
Whether you're hiring your first employee in Thailand or scaling a full team, we make it easy to stay compliant from day one.
Contact us when you're ready to learn more.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided "as is," and no representations are made that the content is error-free.
© 2025 Pebl, LLC. All rights reserved.
Topic:
Country Guides
