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July 31, 2023
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2 mins
Thailand is renowned for its enchanting temples, rich culture, vibrant religious traditions, and breathtaking natural landscapes. With a focus on tourism and industrialization, the country has experienced significant economic growth. Among 39 countries in the Asia-Pacific region, Thailand ranks 13th in terms of overall economic development.
Employers must prioritize understanding Thailand's employment laws and regulations when hiring individuals from the country. Here are some key policies observed in Thailand for local employees, which employers should consider during the onboarding process.
In Thailand, employee contracts can be either oral or written. It is important to note that for local employees, the language used must be Thai, while for foreign workers, the contract should be in English.
Thai employees are typically granted a probationary period of up to four months.
In Thailand, the payroll cycle commonly follows a monthly schedule, as specified in the employment contract.
The minimum wage in Thailand varies across different regions, typically ranging from 313 THB to 336 THB.
Regular working days: Employees are entitled to receive 1.5 times their hourly rate.
Normal working hours on holidays: Employees are eligible to receive 2 times their hourly rate. Overtime hours on holidays: Employees are entitled to receive 3 times their hourly rate.
In Thailand, the provision of a 13th-month pay is not obligatory.
In Thailand, employees are eligible for various benefits as stated in their employment contracts. Some of these benefits include:
The standard VAT rate in Thailand is 7%.
Termination of the contract can be initiated by either the employer or the employee, and both parties are required to provide notice. However, in the case of a fixed contract for an employee, no notice is necessary when the contract naturally expires.
During the probationary period, Thai employees are typically provided with a notice period of up to 30 days. Following the probationary period, employees are expected to observe a notice period of up to 3 months when terminating their employment.
The amount of severance pay is determined by the employee's years of service.
In order to work legally in Thailand, foreign employees must obtain a Non-immigrant Visa Type B, which can be either a 90-day single entry or a 1-year multiple entry visa. The visa can be extended or canceled under certain conditions by the embassy. Once the visa is obtained, foreign employees can then apply for a work permit.
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If you're considering hiring employees or contractors in Thailand or seeking compliant payroll solutions, reach out to us or book a demo at http://niural.com. For further insights, follow us on Twitter @niuralhq. Make informed decisions and ensure a successful hiring process in Thailand!
