Employer of Record in Thailand: A Comprehensive Guide for 2026

Introduction

Employer of record in Thailand means hiring through a locally registered third party that acts as the legal employer, handles payroll, Social Security Fund (SSF) contributions, personal income tax withholding, employment contracts, and compliance with Thailand's Labor Protection Act (1998), so your company can hire in Thailand without setting up a subsidiary.

Skuad's EOR service starts at $199 per employee per month, covers onboarding in one to two weeks, and supports hiring across 160+ countries.

On the cost side, the main employer obligation is the SSF contribution at 5% of monthly wages, capped at THB 875/month per employee from January 2026 under a revised wage ceiling of THB 17,500. Corporate tax sits at 20%, and provincial minimum wages range from THB 337 to THB 400/day.

For companies weighing where to hire in Southeast Asia, those numbers make Thailand a comparatively straightforward market to enter through an EOR. This guide walks through employment regulations, payroll and taxes, employee entitlements, work permits, how EOR compares to setting up a Thai subsidiary, and what Skuad handles on your behalf.

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Thailand at a Glance

• Estimated population: 71.5 million
• Currency: Thai Baht (THB, ฿)
• Capital: Bangkok
• Languages frequently used: Thai, English
• GDP: USD 577.01 billion

How does employment regulation work in Thailand?

Thailand’s labor laws and regulations set out the framework for employment relationships, including employee rights, benefits, and employer obligations.

Employment regulations in Thailand are primarily governed by Acts, Decrees, and ministerial regulations. Acts are laws enacted by the Thai Parliament that outline key provisions related to employment. Decrees, issued by the monarch, address specific legal matters, while ministerial regulations provide additional details and implementation guidelines under the broader legislative framework.

What are the types of employment contracts in Thailand?

Employment contracts in Thailand define the terms and conditions of the working relationship between an employer and an employee, including duration, responsibilities, and employment terms. They are generally classified based on the nature and length of engagement.

Definite contract

A definite contract is used for employment arrangements with a fixed duration, specific project, or defined assignment. It is typically used for temporary roles or project-based work where the employment period is clearly stated in the agreement.

Indefinite contract

An indefinite contract refers to an ongoing employment relationship without a predetermined end date. It is the most common form of employment arrangement for permanent roles and supports long-term workforce stability.

Laws in Thailand are typically thoroughly detailed and go into the specifics of employment, the conditions under which people can be employed, and the contractual obligations of both the employer and the employee.

Some of the provisions of employment laws to note before hiring in Thailand are as follows:

What are the key employee entitlements in Thailand?

The Labor Protection Act and related employment regulations govern employee entitlements in Thailand. Employers must comply with statutory requirements covering working hours, rest periods, public holidays, and various types of leave to ensure lawful employment practices and protect employee rights.

What are contractors and full-time employees in Thailand?

Thailand has a growing population of educated youth. A highly skilled and employable population has attracted several companies to hire in Thailand.

The regulations related to contractual and full-time employment are not significantly different in Thailand. The employment contract contains the period of employment of the respective employee.

Full-time employees will typically be employed indefinitely, while part-time and contractual employees will typically have their period of employment mentioned in their contract. 

As per Thai law, the same provisions and benefits are extended to contractual, part-time, and full-time employees. The law does not discriminate considerably among different types of employment.

Here’s how Skuad helps you:

Whether you're hiring full-time employees or independent contractors, Skuad helps businesses build and manage teams in Thailand through a centralized global employment platform.

Full-time employees or contractors? Skuad supports both in Thailand. See pricing.

What are the key things to know about hiring in Thailand?

A company hiring employees in Thailand must comply with the country's labor and employment laws, including the Labor Protection Act and related regulations. Employers typically provide a written employment contract that clearly outlines the terms and conditions of employment before or at the start of employment.

The employment contract should include details such as:

• Job title and responsibilities
• Salary and payment frequency
• Working hours and rest periods
• Leave entitlements
• Employment type and termination conditions

Employment in Thailand may be on an indefinite-term or fixed-term basis. Fixed-term contracts are used for temporary, project-based, seasonal, or time-specific work.

Thai labor law promotes equal treatment in the workplace and requires employers to maintain a safe and healthy working environment in compliance with occupational safety regulations.

Employers in Thailand should also:

• Register eligible employees with the Social Security Fund (SSF).
• Withhold and remit personal income tax and statutory Social Security Fund contributions.
• Provide statutory leave, public holidays, and other employee entitlements.
• Ensure the workplace complies with occupational health and safety requirements and provide appropriate protective equipment where necessary.
• Obtain the required work permits and visas before employing foreign nationals.

What are the probation and termination rules in Thailand?

Probation laws in Thailand

Thai law mentions probation in passing. It talks about the ability of the employer and the employee to determine the duration of the probation period through mutual agreement. However, it does not delve into the specifics of the probationary period or further details.

However, the probation should not exceed 119 days because Thai law states that employers have to provide employees severance pay if they are terminated after 120 days. Therefore, this is a significant gray area and must be avoided to prevent disputes.

Termination of employment

The employer can terminate an employee unilaterally if the employee is guilty of gross misconduct such as dishonesty in duty, violations of the contract, or is sentenced by a court of law. No notice or compensation is required in instances such as these.

In other cases where the employer chooses to unilaterally dismiss an employee, a notice period must be provided. The employer may also provide the employee with compensation for the notice period and dismiss the employee immediately.

Why use an Employer of Record in Thailand for hiring?

Hiring employees in Thailand requires businesses to comply with local employment laws, payroll regulations, tax obligations, and statutory contribution requirements. Setting up a local entity can take time and involve ongoing administrative responsibilities.

An employer of record (EOR) allows companies to hire employees in Thailand without establishing a local entity, making it easier to enter the market while meeting local employment requirements.

What are the benefits of hiring through an EOR in Thailand?

An employer of record (EOR) provides businesses with a practical way to hire and manage employees in Thailand while handling local employment responsibilities. Key benefits include the following:

• Payroll and HR administration: Payroll processing, employee records, statutory filings, and other administrative tasks are handled through a single solution.
• Hiring without a local entity: Businesses can employ workers in Thailand without first establishing a registered company.
• Efficient workforce management: Employee onboarding, payroll, compliance, and offboarding can be managed through one centralized platform.

For companies evaluating this approach, Skuad supports hiring and workforce operations in Thailand through its Employer of Record solution, enabling businesses to hire and manage employees without requiring a local entity.

Here is what Skuad helps with:

• Employment contract generation aligned with local employment regulations and statutory requirements
• Statutory contribution management, including Social Security Fund (SSF) obligations and applicable employer/employee deductions
• Payroll processing in 70+ currencies with accurate tax withholding and statutory compliance
• Termination and offboarding support in line with local employment requirements

Book a demo to see how Skuad onboards your first Thailand hire without entity setup.

What are the types of visas in Thailand?

Foreign nationals planning to travel to Thailand may require a visa depending on their nationality, purpose of travel, and intended length of stay. Thailand offers different visa categories to accommodate various travel purposes, while eligible travelers may also qualify for a visa on arrival or visa exemption, subject to the applicable immigration requirements.

What are the work permit requirements in Thailand?

Foreign nationals intending to work in Thailand need a Non-Immigrant B visa and a separate work permit issued by the Ministry of Labour. Common supporting documents include a valid passport, employment contract, company registration documents, and passport-sized photographs.

For the full application process and document checklist, see work permits in Thailand.

EOR vs setting up a subsidiary in Thailand: which should you choose?

An EOR lets you hire in Thailand within one to two weeks and charges a per-employee fee (Skuad starts at $199/month), while setting up a Thai subsidiary requires company registration with the Department of Business Development (DBD), foreign business licensing, minimum capital, and ongoing corporate filings, typically taking several weeks to months before you can make your first hire. A detailed comparison of which model works is listed below:

Get a Thailand hiring cost estimate. Compare EOR vs entity setup.

How do payroll and taxes work in Thailand?

Thailand's payroll system requires employers to withhold personal income tax (PIT) at progressive rates from 0% to 35%, contribute 5% of wages to the Social Security Fund (capped at THB 875/month per party from January 2026), and file monthly returns with the Revenue Department. Understanding employee classifications and applicable legal obligations is essential for accurate payroll processing and ongoing compliance.

Payroll administration in Thailand includes salary payments, tax withholding, statutory contributions, and employment recordkeeping. Businesses expanding into Thailand should ensure their payroll processes align with local regulatory requirements to support compliant employment practices.

What should employers know about payroll in Thailand?

Managing payroll in Thailand requires employers to comply with local tax regulations, statutory obligations, and employment requirements. Establishing an effective payroll process helps ensure accurate salary payments, regulatory compliance, and efficient workforce administration.

How does taxation work in Thailand?

Taxation in Thailand includes corporate taxes, employee income tax, and mandatory social security contributions for both employers and employees, along with applicable indirect taxes such as VAT.

Employer taxation

Employee taxation

What does it cost to hire an employee in Thailand through an EOR?

For an employee earning THB 50,000/month (approximately $1,400 USD), the total employer cost through Skuad's EOR breaks down as follows:

Note: This example is for budgeting purposes only. Actual costs vary based on salary level, industry classification, benefits, and exchange rates. Use Skuad's employee cost calculator for a personalized estimate, or book a demo to discuss your Thailand hiring requirements.

How to set up a subsidiary in Thailand?

Setting up a Thai subsidiary requires company registration with the Department of Business Development (DBD), a Memorandum of Association, a Tax Identification Number, VAT registration, SSF enrollment, and any applicable foreign business licenses. Foreign-owned companies must meet minimum registered capital requirements (THB 2 million, or THB 3 million for a work permit) and comply with Foreign Business Act restrictions.

For companies that prefer not to establish a local entity, Skuad's EOR supports compliant hiring and payroll in Thailand. For the full incorporation process, see company registration in Thailand.

How do PEO services work in Thailand?

A Professional Employer Organization (PEO) in Thailand provides HR and payroll support while the client company remains the legal employer. Unlike an EOR, which acts as the legal employer through its own entity, a PEO requires the client to have a registered business in Thailand.

Organizations that do not have a registered entity in Thailand may instead choose an Employer of Record (EOR). An EOR acts as the legal employer on behalf of the client, managing employment contracts, payroll, statutory contributions, and employment compliance, while the client company directs the employee's day-to-day work.

For a detailed comparison, see PEO services in Thailand.

Ready to manage your workforce in Thailand?

By now, you should have a clear understanding of hiring, payroll, tax obligations, employee entitlements, work permits, and workforce management requirements in Thailand. Understanding these requirements can help businesses build compliant employment practices and support successful expansion into the Thai market.

Skuad helps organizations hire, onboard, pay, and manage employees in Thailand through its Employer of Record (EOR) solution. With payroll support in 70+ currencies and hiring capabilities across 160+ countries, Skuad helps businesses manage global teams while maintaining compliance with local employment requirements.

Start hiring in Thailand without entity setup. Book a demo.

FAQs

1. What is an employer of record in Thailand?

An employer of record in Thailand is a third party that legally employs workers through its local entity. The EOR manages employment contracts, payroll, Social Security Fund contributions, tax filings, and compliance with the Labor Protection Act, while the client company oversees the employee's day-to-day work and performance.

2. Can a foreign company hire employees in Thailand without a local entity?

Foreign companies can hire employees in Thailand without establishing a local entity by engaging an employer of record. The EOR becomes the legal employer and manages payroll, statutory contributions, tax compliance, and other employment obligations, while the client company directs the employee's daily responsibilities.

3. What are the risks of misclassifying a contractor in Thailand?

Misclassifying a contractor as an independent worker when the working relationship resembles employment can lead to legal and financial liabilities. Thai authorities consider factors such as supervision, control, and integration into the business. Employers may be required to provide back pay, statutory benefits, severance, and other employment entitlements if a worker is reclassified as an employee.

4. What is the difference between an Employer of Record and a PEO in Thailand?

An Employer of Record acts as the legal employer through its own Thai entity, allowing companies to hire employees without establishing a local business. A professional employer organization (PEO) provides HR and payroll support, but employees remain legally employed by the client's registered entity in Thailand.

5. How long does it take to onboard an employee in Thailand through an employer of record?

The onboarding timeline through an employer of record in Thailand typically ranges from one to two weeks after the required employment documentation has been completed. This timeframe generally includes preparing the employment contract, collecting employee information, registering for statutory payroll and Social Security Fund contributions, and completing other compliance requirements.

6. How much does an employer of record in Thailand cost?

Skuad's EOR service for Thailand starts at $199 per employee per month. On top of the service fee, employers should budget the 5% Social Security Fund contribution, capped at THB 875/month per employee from January 2026. See the worked cost example above for a full breakdown, or use the employee cost calculator for a personalized estimate.

7. How does Skuad handle data security and compliance?

Skuad maintains SOC 2 compliance and GDPR-aligned data practices. Employee and payroll data is encrypted in transit and at rest. Skuad Shield provides ongoing compliance monitoring across supported markets. For companies in regulated industries, Skuad supports data handling requirements across jurisdictions. Book a demo to discuss your specific data security requirements