Business
Thailand — Business: Hiring Employees
Thailand's Labour Protection Act sets minimum standards for hiring: a standard 8-hour workday / 48-hour workweek (or 42 hours for hazardous work), mandatory severance pay scaled by tenure (from 30 days' pay after 120 days of employment up to 400 days' pay after 20+ years), and a minimum wage that varies by province (Bangkok and other high-cost provinces set higher rates than rural provinces, adjusted periodically by the National Wage Committee). Employing foreign staff requires securing a work permit, generally tied to a Thai company meeting the minimum registered capital and Thai-to-foreign staff ratio requirements (commonly cited as 4 Thai employees per foreign work permit holder, though this varies by business type and BOI status).
Why this matters
Severance pay obligations and Thai-to-foreign staff ratios are the two most commonly underestimated compliance costs for foreign-owned businesses hiring in Thailand.
Key facts
- Standard working hours: 8 hours/day, 48 hours/week (42 hours/week for hazardous work categories).
- Statutory severance pay scales with tenure: from 30 days' pay after 120 days employed, up to 400 days' pay after 20+ years of service.
- Minimum wage varies by province, set and periodically adjusted by the National Wage Committee — Bangkok and industrial provinces are generally higher than rural areas.
- Foreign employees require a work permit, generally tied to the employer meeting minimum registered capital (commonly THB 2 million per foreign employee) and a Thai-to-foreign employee ratio (commonly cited as roughly 4:1, varying by business type/BOI status).
- Employers must register employees for Social Security Fund contributions (see Social Security topic) alongside standard payroll withholding.
Steps
- Confirm eligibility to sponsor a work permit — Verify the company meets minimum capital and Thai-to-foreign staff ratio requirements before hiring a foreign employee.
- Draft a compliant employment contract — Ensure the contract meets Labour Protection Act minimums on hours, leave, and severance entitlements.
- Register the employee for Social Security — Register new employees with the Social Security Office within the required timeframe of their start date.
- Apply for the work permit (foreign hires) — Submit the work permit application to the Ministry of Labour alongside the employee's non-immigrant visa documentation.
Timelines
- Work permit processing (standard): typically 7 business days once documents are complete
Required documents
- Company registration documents and financial statements (to prove capital/ratio compliance)
- Employee's passport, non-immigrant visa, and educational/professional qualifications
- Employment contract
- Social Security registration
Common mistakes
- Underestimating statutory severance pay obligations, which scale significantly with employee tenure and are mandatory regardless of contract terms.
- Not verifying the Thai-to-foreign employee ratio before committing to hire additional foreign staff, which can block a work permit application.
- Missing the deadline to register new employees for Social Security, resulting in penalties.