Thailand is known for its temples, culture, religion, and scenic beauty. Over the years, the country has boosted its economic development with tourism and industrialization. Out of 39 countries in the Asia-Pacific region, Thailand holds the 13th position for overall economic growth.

Major Economic Hubs:

‍Bangkok, Chiang Mai, Pattaya, Phuket

Skills in Demand:

‍Skilled Trades, Sales Representatives, Drivers, Technicians, IT

Resident Tax Information

The Thai government taxes its citizens and residents on their worldwide income; however, non-residents are taxed for any profits derived from working in Thailand.

Income taxes in Thailand are progressive based on the salaries earned. The income tax rates in Thailand are —

Social Security

Thai employers should enroll their employees with social security and contribute to various funds.

• Pension
• Health insurance
• Unemployment insurance
• Work injury

The social security contributions include——

The Thai government requires that employers contribute toward the employee’s social security. The maximum amount an individual can put into their account is 750 Baht, which equals $28 per month or 24 RMB every single day.

Statutory Benefits

The following list of benefits is the minimum that every employer must provide their employees. It's not optional, so make sure your company offers these crucial terms and conditions.

As a part of the social security benefits, all individuals making Contributions are entitled to —

Disability and invalidity benefits

An insured person in Thailand can receive benefits for a nonoccupational disability.

However, they must have paid contributions for at least three months fifteen days before the disability.

The disability must be certified by the Medical Committee. Examples of invalidity benefits include

• Medical treatment expenses
• Medical diagnosis and examination expenses
• Medical supplies and medicine expenses
• Cost of ambulance or transportation
• Expenses relating to treatment and admission to a medical establishment or hospitals
• Physical, occupational rehabilitation, or mental expenses
• Other expenses are covered under Section 69 and Section 70 of the Social Security Act.

Life-death cover

If an employee dies due to sickness or a non-work related injury, they are entitled at least one month of life extension benefits.

However, the employee must have contributed toward social security.

• A funeral allowance up to THB 50,000 (the designated funeral undertaker must approve this)
• The survivor s allowance is paid to the designated beneficiary of the insured person in writing.

Medical treatment cover

Thai citizens are entitled to sickness compensation and nonoccupational injury benefits if they have made contributions toward the social security funds for less than three months before receiving medical services.

The medical benefits of this policy are free for anyone who has registered with their local hospital as an injured or sick person. Social Security Act covers 14 diseases but not others, so it's important to know what you're getting into before signing up.

However, the compensation benefits include

• Medical treatment expenses
• Medical examination expenses
• Treatment, lodging, and meal expenses in the hospital
• Pharmaceutical and medicine expenses
• Cost of ambulance or transportation expenses for the patient
• Other necessary expenses include preventive healthcare and grants for insured individuals (for those insured who suffered due to inadequate medical care).

The employee's social security card is a key component in accessing the insured’s hospital treatments and services.

Child allowance

The insured individual must have contributing for at least 12 months before being eligible to receive childcare benefits. They will get monthly allowances of 600 THB per child, and an annual maximum three times that amount (1200).

Maternity benefits

An insured individual is entitled to maternity benefits such as compensation relating to the childbirth for

Their spouse or,

Themselves

With the contribution to social security for a minimum of five months and at least fifteen before maternity leaves, there is an increased chance that you will be entitled or receive benefits from these programs.

Old-age benefits

Old-age benefits such as old-age pensions are provided to employees and individuals

• Who are 55 years or older and,
• Have contributed for a minimum of 180 months.

These conditions are irrespective of whether the contribution period is consecutive or not

The old-age pension pay calculations are based on

• The percentage of monthly salaries and,
• The contribution amounts as laid down by the Ministerial Regulations.
  

Unemployment insurance

Employees in Thailand are entitled to unemployment benefits for a minimum of six months if they had contributed toward the social security and were unemployed within fifteen months before.

However, certain conditions must be fulfilled for an employee to claim unemployment benefits which include -

• Having the ability to work
• Not refusing job training
• Registration with the Government Employment Services Office
• Ready for suitable job as provided

The following reasons must not have caused the unemployment of the insured individual –

• Intentionally committing a criminal offense on their employer
• The employee was terminated for fraudulent reasons after he neglected his duties and responsibilities numerous times.
• The employee intentionally caused damages to their employer.
• Violating work rules and regulations
• Jail due to criminal activities

Workman's compensation funds (WCF)

The Workmen’s Compensation Fund ensures that employers are protected from liability for their employees' work-related injuries. The WCF was designed so both employee workers, as well as

• Disability
• Injury
• Disease or,
• Death

Employees in Thailand are eligible to receive compensation benefits that include

• Monthly indemnity
• Medical services
• Funeral allowances (applicable when work-related injuries occur)
• Rehabilitation

The Thai labor laws provide a number of leaves that employers are required to respect, such as maternity leave and family care. However they also have flexible standards depending on their industry needs so employees will find additional opportunities available with them per what is expected in each specific field or type work environment needed for success thereat home base business practices.

13th-month pay or Holiday pay is customary in Thailand. The holiday pay is commonly provided in December.

Fringe Benefits

Fringe benefits are provided to all employees in addition to the statutory benefits, compensation, and social security benefits. Commonly provided fringe benefits in Thailand include

• Flexible working hours
• Business trip expenditure
• Travel expenses to commute to work or company transportation
• Additional paid time off

Exempt Benefits

Certain benefits are exempt from the taxation laws of Thailand. The exempt benefits include

• Life insurance premiums that can be capped at 100,000 Thai Baht per year.
• The combined health insurance and life premium cannot exceed 100 thousand Thai baht.
• The child delivery and antenatal care expenses with a maximum capping up to 60,000 THB.
• Mortgage interest expenses can be capped at 100,000 Thai Baht per year.
• The maximum amount an individual can contribute to their retirement fund is THB 500,000. This translates into a fraction of one percent (0.01%) for every dollar you make over that threshold
• The Thai government has an exemption for 50% employment expenses, but business related items are not covered under regulations.

Long-term Incentives

Long-term incentives (LTI) are a great way to motivate employees and keep key people around. They're often included in strategic plans as an incentive for service rendered, achievement of organizational goals or when hiring new staff members who may not have the same level of commitment as their predecessors did yet but still want success just like them.

• Life insurance covers
• Employee stock options (in medium enterprises)
• Group disability
• Private health insurance with the addition of dental covers and medical covers
• Performance-linked incentives

Termination Process

Termination of the contract may be initiated by either the employer or the employee, and either party shall issue notice. However, if the employee has a fixed contract, a notice is unnecessary when the contract expires.

Notice Period

Thai employees under probation are given a notice period of up to 30 days. After probation, they are to observe a notice period of up to 3 months when terminating their employment.

Severance Pay

The severance pay is based on the years of service by the employee.