Hiring Your First Employee in Thailand: Contracts, Payroll, Social Security and Severance (2026)

Hiring the first employee turns a Thai company from a shell into an employer. That brings obligations under the Labour Protection Act, the Social Security Act and the Revenue Code. This guide covers the essentials for a small company in Bangkok.

This is general information, not legal advice. For accountants, payroll providers and labour lawyers, see the legal and finance directory.

Before the first hire#

• Company registered, with a tax ID. See registering a company in Thailand.
• Employer registration with the Social Security Office (SSO). Register within 30 days of hiring your first employee.
• Payroll set-up: a payroll calendar, a way to calculate withholding tax and social security, and someone to file the monthly forms. Most small companies use their accountant or a payroll provider.
• Work rules. Employers with 10 or more employees must have written work rules in Thai. Smaller employers benefit from having them anyway.

The employment contract#

Thai law does not require every employment contract to be in writing, but you should always have one. It should cover:

• job title and duties;
• start date, place of work and working hours;
• wages, pay dates and any allowances;
• probation, if any (see below);
• leave entitlements;
• notice and termination terms;
• confidentiality and, where reasonable, non-competition clauses.

Bilingual Thai–English contracts are common. If the Thai version prevails, make sure it says what you intend.

Wages and working time#

• Minimum wage: the statutory minimum daily wage in Bangkok is 400 THB.
• Pay frequency: wages must be paid at least once a month.
• Working hours: normal working time is capped at 8 hours a day and 48 hours a week, with lower limits for hazardous work. Overtime, holiday work and holiday overtime are paid at premium rates set by the Labour Protection Act.
• Leave: employees are entitled to public holidays, annual leave after one year of service, sick leave and other statutory leave. Maternity leave is 120 days.

Social security#

Under the Social Security Act, both the employer and the employee contribute 5% of monthly wages, on wages up to a cap of 17,500 THB a month. That means the maximum contribution is 875 THB a month each.

• Deduct the employee's share from wages.
• Pay both shares to the SSO, with the monthly contribution form, by the 15th of the following month.
• Register each new employee with the SSO, and notify the SSO when someone leaves.

See our guide to social security and payroll in Thailand for more detail, and the Social Security Office for forms.

Withholding tax on salaries (PND.1)#

The employer must withhold personal income tax from salaries each month, based on the employee's expected annual income and allowances.

• File form PND.1 and pay the tax withheld by the 7th of the following month, or by the 15th if you file online through the Revenue Department.
• File the annual summary (PND.1 Kor) by the end of February.
• Give each employee a withholding tax certificate (50 Tawi) for the year.

See personal income tax for expats and withholding tax in Thailand.

The Employee Welfare Fund (from 2027)#

From 1 January 2027, employers must contribute to the Employee Welfare Fund (EWF). According to Forvis Mazars, the rates start at 0.25% from the employer and 0.25% from the employee, and are due to rise in steps until 2031. Companies that already run a registered provident fund may be treated differently. Check with your accountant before January. The EWF dates are also in our annual compliance calendar.

Probation#

Thai law does not recognise probation as a separate employment status. In practice:

• An employee on probation is an employee, with the same rights to wages, social security and leave.
• Probation clauses are common, usually up to 119 days. That is because severance is only due once an employee has worked for 120 days.
• Ending employment during probation still requires notice (see below), unless the dismissal is for serious misconduct.

Notice#

An employer ending an open-ended contract must give written notice on or before a pay date, to take effect on the next pay date. With monthly pay, that means roughly one to two months' notice in practice. The employer can instead pay wages in lieu of notice for that period.

Severance#

Under section 118 of the Labour Protection Act, an employee who is dismissed (not for serious misconduct) is entitled to statutory severance based on length of service:

Sources: Labour Protection Act summary, ILO EPLex and Jainterlaw. Severance is separate from notice pay and from payment for unused annual leave.

Severance is not payable when an employee resigns, or is dismissed for serious misconduct as defined in the Act, such as dishonesty, wilful damage to the employer, or a serious breach of work rules after a written warning.

Hiring a foreign employee#

Foreign staff need a work permit before they start work. See our guides to work permits and the Non-B business visa.

For a typical company, the Department of Employment expects 2 million THB of paid-up capital and 4 Thai employees for each foreign work permit. BOI-promoted companies and some visa holders (such as the LTR visa or SMART visa) have different rules.

Employee, contractor or outsourced?#

Not every role needs a direct employee. Many small companies start with one of three models:

• Direct employee. You hire, pay and manage the person yourself. You carry all the obligations in this guide, and you build your own team.
• Freelancer or contractor. You pay invoices for services, usually with withholding tax deducted. This suits project work. But if the person works fixed hours, under your direction, with your equipment, a Thai court or labour inspector may treat them as an employee, with back-payment of social security and severance rights.
• Outsourced service. An accounting firm, payroll provider or staffing company does the work under its own contracts. You pay a fee and avoid running payroll yourself, but you have less control.

Whichever model you use, write it down clearly, and make sure the way the person actually works matches the contract.

Records to keep#

Keep employment contracts, payslips, time records, leave records, social security filings, PND.1 filings and withholding tax certificates. Labour inspectors can ask to see them, and they are your evidence in any dispute about wages, overtime or severance. Keep them for at least as long as the law and your accountant advise, and longer for anything under dispute.

A first-hire checklist#

1. Register the company with the SSO as an employer.
2. Sign a written contract with the employee.
3. Register the employee with the SSO.
4. Set up payroll: wages, social security, withholding tax.
5. File PND.1 monthly and pay SSO contributions by the 15th.
6. Plan for the Employee Welfare Fund from January 2027.
7. Keep payroll and time records.
8. Before ending employment, check notice and severance.

Frequently asked questions#

How much is social security in Thailand? Employer and employee each pay 5% of monthly wages, on wages up to 17,500 THB a month, so up to 875 THB each.

What is the minimum wage in Bangkok? The statutory minimum daily wage in Bangkok is 400 THB.

Can I dismiss an employee during probation without paying severance? If the employee has worked fewer than 120 days, no statutory severance is due, but you must still give notice or pay in lieu, unless the dismissal is for serious misconduct.

How much severance must I pay in Thailand? From 30 days' wages (120 days to 1 year of service) to 400 days' wages (20 years or more).

What is the Employee Welfare Fund? A new fund that starts on 1 January 2027. Employers and employees each contribute, starting at 0.25% of wages.