Payroll and Social Security in Thailand: Employer Guide

Hiring your first Thai employee triggers four sets of obligations:

• Social Security (SSO) registration and monthly contributions;
• the Workmen's Compensation Fund (WCF);
• PIT withholding on PND.1;
• the Labour Protection Act rules on wages, hours, leave and severance.

The contribution ceiling rose on 1 January 2026, and maternity leave was extended to 120 days from 7 December 2025. Older guides, including many accounting-firm blogs, are now wrong on both. Payroll records also feed your year-end accounts and audit.

1. Registration#

Foreign employees with work permits are also registered. Their SSO card gives access to the network hospital chosen at registration.

2. Social security contributions#

Late payment carries a surcharge of 2% per month on the unpaid contributions, capped at the amount of the contributions themselves (Social Security Act s.49, as amended 2015). Contributions are due by the 15th of the following month (s.47).

What the employee gets:

• medical care;
• sickness, disability and death benefits;
• maternity benefit (the SSO pays a maternity allowance in addition to the employer's share);
• child allowance;
• old-age pension or lump sum;
• unemployment benefit.

3. Workmen's Compensation Fund#

• Paid only by the employer.
• Rate: 0.2% to 1.0% of annual wages, depending on industry risk. Offices sit at the low end.
• The wage base is capped at 240,000 THB per employee per year.
• The estimated contribution is paid by 31 January; the actual figure is reconciled by 28 February.
• It covers work injuries, which are then not charged to the SSO's sickness benefits.

4. Minimum wage and pay rules#

• Bangkok minimum wage: 400 THB/day from 1 July 2025, under Wage Committee Notification No. 14. Some provinces and sectors differ.
• Monthly employees: at least 400 × 30 = 12,000 THB a month in Bangkok.
• Wages must be paid in Thai baht, at least once a month.
• Overtime:
• 1.5× the hourly wage on working days;
• for work on holidays: 1× (for monthly staff, on top of the monthly wage) or 2× (for daily staff);
• 3× for overtime on holidays.
• Normal hours: at most 8 per day and 48 per week (42 for hazardous work).

5. Leave entitlements#

6. PIT withholding: PND.1#

• Estimate each employee's annual tax, using the 50% expense deduction capped at 100,000 THB, the 60,000 THB personal allowance and SSO contributions. Withhold one-twelfth each month.
• File PND.1 by the 7th (paper) or the 15th (e-filing) of the following month.
• File PND.1 Kor, the annual summary, by the end of February. Issue each employee a 50 Tawi for the year.
• Bonuses are included in the annual estimate in the month paid.

See our personal income tax guide for brackets.

7. Worked example: monthly cost of a 40,000 THB employee#

Many employers also offer group health insurance (about 8,000–25,000 THB per year per employee), a provident fund (employer match of 2–15%) and an annual bonus. These are market practice, not legal requirements.

8. Termination and severance#

• Notice: at least one pay period, or payment in lieu.
• No severance if dismissed for serious misconduct listed in s.119, such as dishonesty, wilful damage, or serious breach of work rules after a written warning.
• Fixed-term contracts do not avoid severance except in narrow project cases.
• Unfair dismissal claims go to the Labour Court, which can award compensation on top of severance.

There is no statutory "probation" exemption. An employee dismissed after 119 days of service gets no severance; at 120 days they do. That is why Thai probation periods are typically 119 days.

9. Work rules and documents#

• Employers with 10 or more employees must issue work rules in Thai and post them at the workplace.
• Keep an employee register and wage and overtime records for at least 2 years after payment.
• Employment contracts may be in English, but a Thai version helps in disputes.

10. Monthly payroll calendar#

11. Common payroll mistakes we see in Bangkok start-ups#

1. Registering late with the SSO. If an employee is injured or falls ill before registration, the employer can be liable for the costs the SSO would have covered, as well as surcharges on back contributions.
2. Using the old 15,000 THB ceiling. Payroll software set up before 2026 often still caps contributions at 750 THB. From January 2026 the cap is 875 THB, so check your system settings.
3. Foreign staff paid partly abroad. Immigration checks that the declared Thai salary meets the nationality minimum (50,000 THB/month for most Western nationals). Splitting pay between Thailand and abroad to save tax risks both the extension and an RD assessment.
4. Paying the 4 "work permit" Thai staff below their declared salary. Immigration and the SSO compare records. The headcount must be real and paid at least the minimum wage.
5. Calling everyone a contractor. See the FAQ below.
6. Forgetting PND.1 Kor and the annual 50 Tawi. Employees cannot file PND.91 properly without them.
7. Severance surprises. Accrue severance in the accounts. It is not deductible until paid, but it is a real liability once staff pass 120 days of service.

Frequently asked questions#

Do foreigners pay social security? Yes. Foreign employees on Thai payroll contribute on the same basis and receive the same benefits. Some can claim a lump sum of their old-age savings on permanent departure.

Is the 875 THB cap per employee or per company? Per employee: 875 THB from the employee and 875 THB from the employer each month.

Do directors who are shareholders pay SSO? If they are employees on payroll, yes. Directors who are not employees are generally not covered.

Can I pay staff as freelancers to avoid SSO? Not if the relationship is in substance employment: fixed hours, direction, integration in the business. The Labour Court and SSO look at substance, and back contributions plus surcharges can be claimed.

What is the minimum wage for a monthly employee in Bangkok? 400 THB per day, so 12,000 THB a month for a standard 30-day calculation.

Is a provident fund mandatory? Not yet. A national pension fund law has been discussed for years but is not in force as of October 2026. Provident funds are voluntary.

Compare Bangkok accounting and tax firms in our directory.

Related guides#

• Withholding Tax in Thailand: Rates, PND Forms and Deadlines for Businesses
• Thai Work Permit Guide 2026: Requirements, Documents, Fees and Process
• Accounting and Audit Requirements for Thai Companies
• How to Register a Company in Thailand (2026 Step-by-Step Guide)