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POPULATION

71.7m

CURRENCY

฿ (THB)

CAPITAL CITY

Bangkok

Overview

Thailand, officially the Kingdom of Thailand, is a country in Southeast Asia. Known for its stunning landscapes, diverse culture, and rich history, Thailand is a popular destination for tourism and cultural exploration. From the bustling streets of Bangkok to the serene landscapes of the Thai islands, Thailand offers a wealth of cultural and natural attractions.

Thailand's economy is diverse, with key sectors including manufacturing, services, and agriculture. The country is a major exporter of goods and a popular tourist destination, attracting visitors from around the world with its beautiful cities, historic sites, and world-renowned cuisine.

Disclaimer: This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

Local Employment Regulations

Employment Contracts

Written Agreements

Thailand's labor law does not mandate that all contracts of employment be concluded in writing. However, all employers who employ more than 20 employees must conclude a "working conditions agreement" with the employees or their union, which must be in writing. The mandatory elements to be included in this contract are the following:

  • Employment or working conditions
  • Working days and hours of work
  • Wages
  • Employee welfare benefits to be provided
  • Conditions of termination of employment
  • Petition procedure for the employee
  • Renewal or amendment procedure of the working conditions agreement

In addition, fixed-term contracts must be concluded in writing.

Oral Agreements

The labor law of Thailand allows for the use of oral employment contracts. However, all employers with more than 20 employees must conclude a “working conditions agreement” with employees or their union, which must be in writing. In addition, fixed-term contracts must be concluded in writing. To minimize risk for the employer, it is highly advisable to use written agreements whenever possible.

Implied Agreements

Thailand's Labour Protection Act and Civil and Commercial code refer to the existence of implied employment contracts. However, the law does not describe the circumstances under which an employment contract may be implied. To minimize risk for the employer, it is highly advisable to use written agreements whenever possible.

Working Hours

Thailand's labor law states that a normal working day lasts 8 hours and cannot exceed 9 hours. The total normal working hours per week cannot exceed 42 hours. In instances where the employer and employee have arranged overtime work, the additional work cannot exceed 9 hours daily and 48 hours weekly. The employer must provide a weekly rest period of 1 day per week, and the time between each rest period cannot exceed 6 days.

Employees are entitled to a rest period of 1 hour daily after working continuously for no more than 5 hours. For employees aged less than 18 years, employers are obliged to provide a break of at least 1 hour after continuously working for no more than 4 hours.

Public Holidays

1 January: New Year’s Day; Full moon, 3rd Thai lunar month (February): Magha Puja; 6 April: Chakri Memorial Day; 13–15 April: Songkran Festival; 5 May: Coronation Day; May arbitrary date: Royal Ploughing Ceremony and Farmer’s Day; Full moon, 6th Thai lunar month (May): Vesak; Full moon, 8th Thai lunar month (July): Asalha Puja; First waning moon, 8th Thai lunar month (July): Beginning of Vassa; 12 August: The Queen Sirikit’s Birthday; 23 October: King Chulalongkorn Day; 5 December: King Bhumibol Adulyadej’s Birthday Anniversary; 10 December; Constitution Day; 31 December: New Year’s Eve.

Probationary Period

Thailand's employment law does not mandate a probationary period. In practice, an employee becomes eligible for severance pay after working for 120 days, so many businesses consider the maximum probationary period to be 119 days.

The only reference to a probationary period in Thailand's Labour Protection Act is a provision that states that "a probationary contract shall also be deemed as an indefinite period contract of employment." However, this does not mean that a probationary employee is given the same employment protections as a regular, permanent employee.

Employment Termination/Severance

Notice Period

The labor law of Thailand states that where a date of termination is provided in the employment contract, the employer need not give advance notice of dismissal. Where no period of time is specified in the contract of employment, the employer or the employee may terminate the employment contract by providing advance notice in writing to the other party on or before the due date of wage payment for the termination to take effect on the following due date of wage payment. For example, for employees paid on the 5th of each month, notice on or before April 5th is required for termination to be effective on May 5. The advance notice need not be longer than 3 months. In addition, a probationary employment contract is deemed to be an indefinite contract of employment for notice purposes.

An employer is permitted to pay the wages due to the employee during the notice period and immediately dismiss the employee.

Severance Benefits

Thailand's labor law mandates the payment of severance benefits to dismissed employees as follows:

  • If the employee has continuously been employed with the employer for more than 120 days, but less than 1 year, they will be entitled to a payment equal to 30 days of wages
  • If the employee has continuously been employed with the employer for more than 1 year but less than 3 years, they will be entitled to a payment equal to 90 days of wages
  • If the employee has continuously been employed with the employer for more than 3 years, but less than 6 years, they will be entitled to a payment equal to 180 days of wages
  • If the employee has continuously been employed with the employer for more than 6 years, but less than 10 years, they will be entitled to a payment equal to 240 days of wages
  • If the employee has continuously been employed with the employer for 10 or more years, they will be entitled to a payment equal to 300 days of wages

Compensation

Minimum Wage

Thailand's minimum wage varies by province, ranging from THB (Thai Baht) 337 to 400 per day as of 2025, and it is mandatory for all employers, including foreign companies, to comply with these provincial rates. Wages must be paid at least once per month unless otherwise stipulated in favor of the employee.

Overtime, Holiday & Vacation Pay

Thailand's labor law states that an employer cannot require an employee to work overtime unless the employee’s prior consent is obtained on each occasion. However, if the nature of the work requires it to be performed continuously and stoppage may cause damage to machinery, or if it is emergency work, an employer may require an employee to work overtime as necessary.

Any overtime work done by the employee on a working day is to be paid at a rate of no less than 150% of the normal hourly wage. If an employee works overtime on a statutory holiday, the employee is entitled to be paid no less than 300% of their normal hourly wage. Employees who perform (non-overtime) work on a holiday are entitled to be paid no less than 200% of their normal hourly wage.

Employees are entitled to their regular wages during annual leave.

Immigration & Visas

Visas

Thailand's Ministry of the Interior issued ministerial laws defining visa types, some of which are issued only to diplomatic or official passport holders. In contrast, others are issued to persons wishing to enter and temporarily stay in Thailand or to individuals wishing to enter and take up residence in the kingdom. The different visa types entitle their holders to different rights concerning the length of stay in Thailand, and visa fees vary according to visa type. General visa categories are as follows:

  • Non-quota immigrant visas
  • Transit visas
  • Non-immigrant visas
  • Tourist visas
  • Courtesy visas
  • Official visas
  • Diplomatic visas
  • Long-term resident visas

Work Permits

Foreign nationals require a work permit issued by the Director-General of Labor to work in Thailand. An employer who wants to hire a foreign national as their employee has to apply for the permit and pay the fees. Foreign nationals entering Thailand to work must have already obtained a non-immigrant visa to apply for a work permit. The permit is then issued within 7 business days of receipt of the application. The work permit should specify the work location, work period, nature of the work, and the employer's details. The permit is granted for 2 years or the job's duration in the case of temporary work. The permit can be renewed for a period of 2 years, but the consecutive period of work cannot exceed 4 years.

An employee is required to keep the permit at the place of work. If it is lost or damaged, a new permit can be issued by applying within 15 days of the loss.

Population 71.7m

Population in total, including all residents regardless of legal status © 2024 - WBGEUROSTAT

54.3%

Urban Population

90.9%

Internet access

91.8%

Banking access

100%

Mobile phone access

DATA SOURCES

Population: The World Bank: World Development Indicators: World Bank Group • World Population Prospects, United Nations (UN), uri: https://population.un.org/wpp/, publisher: UN Population Division; Statistical databases and publications from national statistical offices, National Statistical Offices, uri: https://unstats.un.org/home/nso_sites/, publisher: National Statistical Offices; Eurostat: Demographic Statistics, Eurostat (ESTAT), uri: https://ec.europa.eu/eurostat/data/database?node_code=earn_ses_monthly, publisher: Eurostat; Population and Vital Statistics Report (various years), United Nations (UN), uri: https://unstats.un.org, publisher: UN Statistics Division

Urban Population: The World Bank: World Development Indicators: World Bank Group • World Urbanization Prospects, United Nations (UN), uri: https://population.un.org/wup/, publisher: UN Population Division

Internet access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU), uri: https://datahub.itu.int/

Banking access: The World Bank: World Development Indicators: World Bank Group • FINDEX, WBG (WB), uri: https://www.worldbank.org/en/publication/globalfindex

Mobile phone access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU)

Social Protection & Benefits

Vacation Leave

Thailand's labor law provides that an employee is entitled to annual leave of at least 6 days after working for an uninterrupted period of 1 year with the same employer. Employees are paid at their normal wage rate for the duration of annual leave. The employer must fix the days of leave in advance for the employee or conclude an agreement with the employee regarding the days of leave. The employer and the employee may agree in advance to accumulate any annual leave that has not yet been taken in a year and postpone it to following years.

The employer can choose to provide annual leave on a pro-rata basis for employees who have not completed 1 year of service.

If employees' contract is terminated by the employer before, they must be paid for the unused annual leave for the year.

Sick Leave

Under Thailand's employment law, employees are entitled to 30 days of sick leave per year. An employee can take up to 2 consecutive days of sick leave without explanation. If the sick leave period is 3 days or more, the employer can require that the employee produce a certificate from a physician or medical establishment. The law states that employees who do not provide a certificate must give an explanation to the employer.

During an employee's sick leave, the employer must remunerate the employee at their regular pay rate. Employees must be remunerated in the same method as they normally would when working. Employees are entitled to paid sick leave beyond 3 days if they provide a medical certificate.

Maternity Leave

In Thailand, pregnant employees are entitled to maternity leave of no more than 98 days for each pregnancy. Any maternity leave taken includes holidays that occur during the period of leave. Employers are obligated to pay normal wages to a female employee during the first 45 days of the maternity leave period.

An employer is prohibited from requiring a pregnant employee to work between 10:00 PM and 6:00 AM, to work overtime, or to work on holidays. If a pregnant employee works in an executive position, in academic work, in clerical work, or in work relating to finance or accounting, the employer may require the employee to work overtime provided that there is no effect on the employee's health and the employee gives prior consent on each occasion.

Paternity Leave

Thailand's labor law does not contain any provision regarding paternity leave in the private sector. Government sector employees may receive paid paternity leave of up to 15 consecutive working days, to be taken within 90 days after birth. Any paternity leave that an employer wishes to grant to an employee is arranged through private negotiations. There is no government-mandated paternity leave provision.

Social Security

Pension

In Thailand, the Social Security Fund provides retirement benefits to insured employees at the age of 55 years if they have paid at least 180 months' contributions. Employees may choose to receive the benefits in the form of monthly pensions or lump-sum superannuation gratuity.

The monthly pension is calculated as 20% of the average monthly salary in the last 60 months before retirement, plus 1.5% per year of contributions beyond 180 months. Insured persons who have paid less than 180 contributions are eligible to receive all the contributions paid in a lump sum.

Contributions are made by both employees and employers.

Dependents/Survivors Benefits

The Social Security Fund of Thailand provides benefits to survivors in case of death of an insured person that is not caused by a work-related accident or disease, provided that the deceased had paid contributions for at least 1 month during the 6 months before their death. Survivors of the deceased employee may include their spouse, children, or parents. The following benefits are paid to survivors:

  • Funeral expenses up to THB 50,000 (Thai baht)
  • Survivors benefits equivalent to 2 months' of the employee's wages if they had paid contributions for 36 months to less than 120 months or 6 months' wages if they had paid contributions for more than 120 months

In case of death that is due to a work-related accident or disease, employers are also obligated to pay monthly pensions to survivors. In this case, the pension paid is 70% of the employee's monthly wages for up to ten years.

Invalidity Benefits

The Social Security Fund of Thailand provides life and disability benefits to the insured persons who have paid contributions for at least 3 months in the 15 months before the onset of disability, provided that the reasons for disability are not work-related. The disability benefits consist of medical expenses, rehabilitation expenses, transportation expenses, and pension.

The benefits received in case of permanent disability are equal to 50% of the wages received by the employee, for a lifetime. For other disabilities, the amount of pension depends on the degree of disability and loss of earnings.

In case of disability caused by a work-related accident or disease, employees are entitled to a pension. For a temporary disability, 70% of the monthly wages of the employee is paid for up to 1 year. For permanent disability, 70% of the monthly wages of the employee is paid for a lifetime.

Minimum Age

In Thailand, minors under age 15 cannot be employed. When an employer hires an employee who is less than 18 years old, the employer must notify a Labor Inspector within 15 days of the employee commencing work. The employer is prohibited from requiring an employee below 18 years of age to work between 10:00 PM and 6:00 AM, to work overtime, or to work on holidays.

Young workers under 18 years of age are entitled to take leave, not exceeding 30 days in a year, for attending seminars or obtaining education or training, provided they inform the employer in advance.

Unemployment 0.7%

Share of the labor force that is unemployed, but available for and seeking employment © 2024 - WBGILO

66.5%

Labor force population share

45.8%

Female share of labor force

82%

Healthcare access

DATA SOURCES

Unemployment: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025.

Labor force (total): The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Labor force population share: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025

Female share of labor force: The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Healthcare access: The World Bank: World Development Indicators: World Bank Group • GHO, WHO (WHO), uri: https://www.who.int/data/gho/data/themes/topics/service-coverage

         

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