Employer of Record (EOR) in Thailand
An EOR in Thailand allows businesses to enter the market quickly and help maintain compliance with local laws, all while reducing the overhead costs of establishing a local entity. Atlas HXM offers a seamless EOR service that handles all aspects of employment from payroll processing to compliant administration, including work permit support for foreign employees.
Partner with Atlas HXM for a cost-effective, compliant solution to hire and manage your workforce in Thailand.
Quick Overview of EOR in Thailand
Expanding into Thailand doesn't have to mean drowning in paperwork or hefty setup costs. With an Employer of Record (EOR), you can bypass the complexities of local regulations and quickly hire employees, all while maintaining compliance with Thailand's labor laws. From payroll processing and tax compliance to benefits management, an EOR takes care of the legal nitty-gritty like social security contributions, so you can focus on growing your business without the need to set up a costly local entity.
The EOR model offers a low-risk, cost-effective alternative to setting up a subsidiary. Establishing a local entity in Thailand can cost anywhere from USD 3,000 to USD 10,000 plus the cost of maintaining human resources (HR), legal assistance, accountants and more. It can also become highly administrative. By partnering with an EOR, you can avoid these setup costs and enter the market faster, avoiding the overhead of a physical office. This is especially beneficial for startups, SMEs, and businesses testing new markets, who need to act quickly and comply with complex local regulations.
How an EOR Works
Atlas HXM provides EOR services that ensure your business remains compliant with Thailand's labor laws while you focus on growing your operations, free from administrative and legal burdens.
Candidate Selection
Atlas HXM does not recruit candidates, but will check the employment setup for compliance around new hires like validating right-to-work, reviewing contract terms against Thailand rules, and configuring payroll and statutory obligations correctly. EOR providers in Thailand, including Atlas HXM, can assist with work permit applications and visa processing for foreign employees, managing the complex requirements through Thailand's Ministry of Labor.
Employment Contracts
Atlas HXM drafts and administers employment contracts in compliance with Thailand's Labor Protection Act. In the contract, we clearly outline employment terms to reduce the risk of future disputes, such as:
Job title and responsibilities
Salary, benefits, and working hours
Leave entitlements and notice periods
Payroll & Benefits Management
Payroll is processed in Thai Baht (THB), including:
Accurate tax withholdings and social security contributions
Statutory benefits such as social security coverage
The EOR also helps maintain compliance with mandatory benefits, so employees are protected under Thailand's laws.
Work Permit Compliance
In Thailand, EOR providers can assist with work permit applications and visa processing for foreign employees. Atlas HXM manages compliant employment, payroll, social security, and statutory obligations in alignment with Ministry of Labor regulations.
Ongoing HR Support
Provides HR support, including: Leave management, employee relations and regulatory updates throughout the employee's tenure. This allows businesses to focus on core operations, while Atlas HXM handles ongoing compliance.
What to Choose: EOR vs PEO
Work Life in Thailand
Thailand's employment framework is designed to balance operational needs with employee protections. Here's what you need to know:
Employment Types:
Permanent: Ongoing employment with full statutory benefits.
Fixed-Term: Hired for a specific project or defined duration (maximum 2 years).
Temporary: Short-term assignments; entitled to statutory benefits like leave and overtime.
Probation Periods: Thailand's employment law does not mandate probation periods, but many businesses use up to 119 days as employees become eligible for severance pay after 120 days. These periods allow employers to assess employee suitability before full employment protections apply. The EOR ensures that all terms are compliant with the Labor Protection Act.
Working Hours & Overtime: In Thailand, the standard workday is 8 hours with a maximum of 9 hours per day. The total normal working hours per week cannot exceed 48 hours. For those doing hazardous work, it is 7 hours per day or 42 hours per week. Employees must receive a break after working 5 consecutive hours (4 hours for employees under 18). For eligible employees, overtime is paid at 150% of the normal hourly rate for regular days, 200% for holidays, and 300% for overtime on holidays. The EOR ensures that all overtime is calculated correctly and that employee work hours comply with local regulations.
Leave Entitlements
Leave Type | Eligibility / Duration | Payment / Notes |
|---|---|---|
Annual Leave | 6 days minimum after 1 year of service | Paid by employer; must be carried over year-on-year and encashed if unused upon termination |
Personal leave (business leave) | At least 3 working days per year for personal business | Paid by employer; subject to agreement these days do not generally carry over and does not need to be encashed if unused |
Maternity Leave | 120 days per pregnancy | First 60 days paid by employer |
Paternity Leave | 15 days within 90 days of the child’s birth | |
Sick Leave | 30 working days per year (but does not include work-related injuries or occupational illness) | Paid; medical certificate required for 3+ days |
Public Holidays | All statutory holidays | Paid; handled by Atlas HXM |
Vacation Leave | As per company policy / statutory minimum | Paid; unused leave typically paid out upon termination |
Payroll & Benefits: Wages must comply with Thailand's provincial minimum wage rates (THB 337-400 per day). Atlas HXM manages payroll in THB, social security contributions (5% employer and employee), statutory benefits, worker’s compensation fund, and supplemental health insurance if required. Additional benefits can include transportation allowances, meal subsidies, and professional development options.
Atlas HXM can help you manage these aspects and can help ensure that employees are supported and compliant with Thailand's labor laws while businesses can focus on operations without administrative burdens.
What to Choose: Indirect vs Direct EOR
Taxes & Compliance
Thailand operates on a calendar-year tax system, running from January 1 to December 31. Employers must remit withheld taxes by the 7th of the following month, file personal income tax returns by March 31st of the following year, and submit monthly VAT returns by the 15th of the following month. Corporate income tax returns are due within 150 days after the end of the tax year.
Category | Details |
|---|---|
Employer Payroll Tax | Social Security contributions: 5% of wages (up to THB 15,000 monthly)
|
Employee Payroll Tax | Residents: progressive income tax 0%–35%
|
Pension System (Social Security Fund) | Retirement benefits available at age 55 with 180+ months contributions
|
VAT & EOR Costs: Thailand applies a 7% Value Added Tax. EOR services may be subject to VAT depending on the provider's structure and service classification. Businesses should clarify VAT treatment when evaluating EOR costs.
Atlas HXM handles tax compliance, including progressive income tax calculations, social security contributions, year-end filings, and expatriate tax considerations, ensuring businesses remain compliant with local laws while minimizing administrative burden.
Termination
Employees must give written notice for termination, with advance notice provided on or before the wage payment due date to take effect on the following payment date. The maximum notice period cannot exceed 3 months. Severance pay is mandatory and increases with tenure: 30 days' wages (120 days-1 year), 90 days (1-3 years), 180 days (3-6 years), 240 days (6-10 years), and 300 days (10+ years). The EOR helps ensure proper handling of terminations, including notice periods, final wages, and required documentation.
Visas & Work Permits
In Thailand, foreign nationals usually need to obtain a long-term visa and a work permit, in order to stay and work in Thailand.. Work permits are issued by the Director-General of Labor and specify work location, period, nature of work, and employer details. Work permits are usually granted for 1-2 years, or for the duration of the assignment. Work permits are renewable at the expiry date for another 1-2 years.”
EOR providers, including Atlas HXM, can assist with work permit applications and visa processing, managing the complex requirements and documentation needed for foreign employees to work legally in Thailand.
5 Things to Look for in an EOR Provider in Thailand
Local expertise and knowledge of labor laws, social security contributions, and Ministry of Labor requirements.
Advanced technology for payroll, reporting, and HR system integration.
Experience in your industry and handling work permit management for foreign employees.
Strong compliance track record and relationships with government agencies and legal advisors.
Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).
Atlas HXM provides direct EOR services, managing payroll, compliance and benefits efficiently. Atlas HXM's unified platform automates HR, payroll, and compliance tasks, while offering premium employee support, global benefits, and access to 9,000+ learning courses. Recognized by Everest Group PEAK Matrix 2025 and NelsonHall NEAT Assessment 2026, Atlas HXM combines compliance, technology, and global expertise.
FAQs
How quickly can an EOR help me hire employees in Thailand?
An experienced EOR can typically onboard new employees with the right to work in Thailand within 5-10 business days, depending on role complexity and work permit requirements. If an employee does not have the right to work, the immigration process can take three to seven months to complete.
Can an EOR help with work permits for foreign employees in Thailand?
Yes, most EOR providers offer comprehensive work permit and visa support services, including application preparation and liaison with Thai immigration authorities.
What is the typical probation period in Thailand?
While not legally mandated, many businesses use up to 119 days as employees become eligible for severance pay after 120 days.
How much notice is required for termination in Thailand?
Notice must be provided on or before the wage payment due date to take effect on the following payment date, with a maximum of 3 months.
What are the social security contribution rates in Thailand?
Both employers and employees contribute 5% of wages up to THB 15,000 monthly, plus 0.2% workmen's compensation from employers.
What are the main compliance risks when hiring in Thailand without an EOR?
Key risks include labor law violations, incorrect tax calculations, social security non-compliance, improper termination procedures, and work permit violations for foreign employees.