We guarantee that all payments will be on time, your data will be secure, and you can be up and running within just 48 hours.
Our in-country subsidiary will act as employer of record, offering you a presence in Thailand for legal local employment.
Our team will manage all of the admin, payroll, HR, and taxes, so you can focus on building your business in Thailand.
With the ever-changing Tha employment laws, we’ll ensure you stay fully compliant at all times.
Our centralized service gives you a single point of contact, simplifying the entire in-country employment process.
Our in-house teams of payroll and HR experts have already helped dozens of organizations expand globally.
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Setting up and managing payroll in Thailand
Thailand has come a long way in a few short decades. The economy has gone from strength to strength, powered by the finance, manufacturing, and tourism industries, among others, to the point where it is now the second-largest in Southeast Asia. As such, the country is a particularly attractive place for foreign organizations to expand.
For many organizations, an important part of expansion into Thailand will be hiring employees locally and setting up a Thailand payroll. This can certainly help to power business growth, but it is also a complicated process for many, often resulting in delays.
At Horizons, we provide expert advice and access to our system for Thailand payroll outsourcing of your payroll setup and management in Thailand. Whether you have already registered an entity in the country or not, our experts will help you build a compliant payroll quickly and efficiently.
Why choose the Horizons payroll solution?
If you have an entity
Do you already have a registered entity in Thailand? We can handle all of your payroll setup and management in the country.
Our team will ensure you are compliant and take care of HR, contracts, and more so you can focus on expanding into Thailand.
If you don’t have an entity
Even if you haven’t set up an entity in Thailand, we can help you get your payroll up and running quickly and efficiently. We’ll hire your employees through our Thailand PEO, acting as employer of record and enabling you to continue your expansion without delay.
This service is ideal for any organization that values low-risk, flexibility, and immediate results.
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Thailand payroll tax rate & laws
What are the tax and withholding rules in Thailand?
Thailand follows a progressive income tax model, with employees paying more tax at higher income levels. The rate varies from 0% up to 35% depending on the income of the employee.
Employers need to enroll employees with the country’s social security program, which subsidizes things like medical care, maternity leave, unemployment insurance, and so on. This is funded by both employees and employers, who contribute 5% of salary each.
The corporation tax rate in Thailand is 20%, but foreign companies can also be liable for additional tax payments in some cases, such as a withholding tax.
Employer Payroll Tax
Employee Payroll Tax
Employee Income Tax
Employer Payroll Tax
|
Pension
|
3.00%
|
|
Health Insurance
|
1.50%
|
|
Unemployment
|
0.50%
|
|
Work Injury
|
0.2%-1.0%
|
|
Total Employment Cost
|
5.2%-6.00% |
Employee Payroll Tax
|
Pension Fund
|
3.00%
|
|
Health Insurance
|
1.50%
|
|
Unemployment
|
0.50%
|
| Total Employee Cost | 5.0% |
Employee Income Tax
|
150,001 to 300,000 bhat
|
5.00%
|
|
300,001 to 500,000 bhat
|
10.00%
|
|
500,000 – 750,000 bhat
|
15.00%
|
|
750,000 – 1,000,000 bhat
|
20.00%
|
|
1,000,000 – 2,000,000 bhat
|
25.00%
|
|
2,000,000 – 5,000,000 bhat
|
30.00%
|
|
Over 5,000,000 bhat
|
35.00%
|
Entitlements and terminations in Thailand
When hiring in Thailand, it is always advisable to have a clearly written formal contract of employment drawn up. This contract should include details of the various entitlements and termination terms.
For terminations without proper cause, employees must provide at least one month of notice. Employees may also be entitled to severance payments of up to 300 days of salary, but this varies based on the length of employment.
How to establish Thailand payroll outsourcing
To establish a payroll in Thailand, you’ll first have to register an entity in the country, registering with multiple government departments and completing a large amount of complicated administration. This process can take several months from start to finish, which could cause significant delays to your expansion and possible loss of income.
At Horizons, we offer payroll setup and management outsourcing to facilitate faster expansion. You can hire employees using our Thai subsidiary as employer of record, bypassing the registration of your own Thai entity if you don’t already have one. We can also take care of your HR, contacts, legal compliance, and general administration so you can focus on a successful expansion operation.
Manage payroll in Thailand
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.
