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12 min read

How to Hire Using an Employer of Record in Thailand (2025)

Employer of record

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Author

Jemima Owen-Jones

Last Update

June 30, 2025

Table of Contents

What is a Thailand Employer of Record?

Top reasons to use an EOR in Thailand

How to hire in Thailand: Step-by-step guide

Employment compliance tasks an Employer of Record manages in Thailand

How much does it cost to hire through an EOR in Thailand?

Which Thailand EOR should you choose?

Is Deel Employer of Record a strong choice for hiring in Thailand?

Hire employees in Thailand confidently with Deel Employer of Record

Key takeaways
  1. Setting up a Malaysian entity to hire local talent can take months and cost over THB 3,114,571 in initial legal, tax, and payroll setup.
  2. A Thai Employer of Record lets you engage talent through its local entity, bypassing setup delays, legal costs, and compliance headaches.
  3. Deel EOR owns its Thailand entity for full control, supports hiring in Thailand and 150+ other countries, offers transparent pricing, monitors compliance in real time, and has top G2 ratings.

Thailand sits at the heart of Southeast Asia’s booming digital economy, offering a strong talent pool for global employment. Bangkok produces world-class developers, while Chiang Mai and Phuket attract remote-first creatives seeking sunshine and startup energy.

Thai salaries remain competitive against Singapore or Tokyo, and English proficiency continues to rise. No wonder global companies—from SaaS unicorns to robotics manufacturers—want to hire employees in Thailand and add Thai professionals to their workforce.

Yet this opportunity comes wrapped in red tape and strict Thai labor laws. To employ one person, a foreign company must register a legal entity, open a Thai bank account, appoint resident directors, and deposit registered capital. Monthly PAYE filings, 5% Social Security Fund (SSF) contributions, and severance payouts reaching 400 days’ wages add further complexity. Misclassifying a “contractor” can land you in court, facing back pay, payroll taxes, and penalties.

An Employer of Record (EOR) in Thailand removes those hurdles. The EOR, not you, becomes the legal employer, running fully compliant Thai payroll and assuming all statutory liability, while you direct day-to-day work. Deel’s Thailand entity facilitates contract generation, compensation benchmarks, and real-time compliance alerts—so you focus on growth, not paperwork.

See also: What’s the Fastest Way to Enter Markets and Hire Globally?

What is a Thailand Employer of Record?

A Thailand Employer of Record is a licensed local company that formally hires your worker and leases them back to you under a service agreement. You retain operational control—tasks, KPIs, culture—while the EOR:

  • Registers the employee with the Social Security Office at 5% of wages
  • Issues a Thai-law employment contract and caps probation at 119 days
  • Calculates, withholds, and remits monthly PAYE to the Revenue Department
  • Files Workmen’s Compensation Fund premiums of 0.2–1%
  • Holds legal liability for wrongful dismissal, misclassification, and payroll errors—protecting you from the risks of non-compliance with employment laws

Deel EOR’s wholly-owned Thai entity means no subcontractor middleman, ensuring direct control. Your intellectual property stays protected through Deel IP Guard, which assigns all employee-created inventions back to you and complies with Thailand’s Personal Data Protection Act (PDPA).

See also: Employer of Record (EOR): A Complete Guide

Deel Employer of Record
Hire employees globally with the #1 Employer of Record
Deel provides safe and secure EOR services in 100+ countries. We’ll quickly hire and onboard employees on your behalf—with payroll, tax, and compliance solutions built into the same, all-in-one platform.

Top reasons to use an EOR in Thailand

Hiring through an EOR in Thailand is a strategic move for international companies seeking compliant global employment.

  • Zero entity friction: Skip the three-month process of setting up a legal entity and the Minimum THB 3 million capital requirement
  • Misclassification shield: Courts look at substance; an EOR provides formal employment status to full-time employees, extinguishing your risk
  • Payroll accuracy: Automated PAYE filings prevent interest charges of 1.5% per month on late payroll taxes
  • Speed to market: Deel EOR can issue a locally compliant contract in under 10 minutes—your engineer starts next week
  • Transparent cost base: Flat Deel EOR fee plus statutory employer costs. No audit surprises, ever
  • Compliance assurance: Benefit from real-time compliance monitoring via Deel Compliance Hub

Choosing Deel was easy—they offer unmatched compliance and HR support that scales with fast-growing companies like ours. They’ve been the best partner for executing our global hiring strategy.

Yunjung (Rina) Bae,

Director of People, MarqVision

How to hire in Thailand: Step-by-step guide

Use this eight-step checklist to move from headcount approval to a fully onboarded Thai employee, following all Thai labor laws and employment compliance requirements.

1. Choose an EOR with a wholly-owned Thailand entity

Start by vetting whether the EOR provider owns its Thai entity. Direct entity ownership gives control over payroll licenses, faster Social Security Fund registration, and enhanced data protection. Deel EOR’s entity is 100% owned and licensed with the Social Security Office, ensuring compliance with local employment laws.

Tip: Ask for the EOR’s company registration certificate.

2. Book a demo and verify social proof

A 30-minute demo should walk you through contract generation, onboarding flow, and compliance alerts. Review independent G2 ratings or Trustpilot reviews—Deel boasts 4.8/5 from 3,000+ reviews.

Tip: Deel EOR stands out with the highest user satisfaction score and largest market presence among Employer of Record products.

3. Request a transparent EOR quote

A credible provider itemizes the employee’s gross salary, 5% SSF, 0.2–1% Workmen’s Compensation, and its management fee. Deel EOR quotes appear in THB and USD and lock fees for 12 months, making costs predictable for hiring employees in Thailand.

Tip: Compare costs before you expand—read our article EOR vs. Entity Costs: What’s More Affordable?

4. Submit a 12–24-month hiring plan

Forecast headcount by role and start date. The EOR schedules SSF registrations and budgets Workmen’s Compensation accordingly, preventing compliance issues.

Tip: Leverage Deel’s Workforce Planning and compensation benchmarking tools for estimated hiring timelines, market rates, and cost projections.

5. Create the employment contract in the platform

Select the Thai employee template, insert salary, benefits, and probation period (max 119 days). The platform auto-adds Thai-language clauses on working hours, IP ownership, and PDPA consent, ensuring contracts align with Thai employment laws.

Tip: Add a non-compete clause only if it meets “reasonable” duration and geography to stay enforceable under Thai labor law.

6. Confirm the candidate’s right to work

For Thai nationals, capture their 13-digit ID. For foreigners, EORs like Deel can handle Non-B visa sponsorship and work permit filing at the Ministry of Labour, ensuring legal status under Thai law.

Tip: Run work authorization and work permit eligibility checks at the offer stage to avoid last-minute surprises.

7. Run the onboarding workflow

The employee e-signs the contract, completes bank details, and is auto-registered with SSF. Payroll variables—overtime, allowances—feed into Deel’s global payroll engine.

Tip: Use Deel Engage to roll out training and performance goals, Deel IT to provision equipment, and Deel background checks if you hire for finance or data-sensitive roles.

8. Maintain ongoing compliance

Each month, Deel deducts PAYE, issues Thai payslips, and remits payroll taxes by the 7th of the following month. The Compliance Hub flags upcoming severance eligibility at 365 days.

Tip: Subscribe to Deel’s compliance newsletter to receive clear and concise summaries of relevant compliance changes.

Platform Tour
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See how easy it is to add and configure a brand-new employee contract through the Employer of Record service. Click to launch a platform demo.

Employment compliance tasks an Employer of Record manages in Thailand

Below is an overview of the core compliance areas your EOR will manage to ensure full adherence to Thai employment laws and employee benefits.

Category Key Requirements (2025)
Statutory Employer Costs In Thailand, statutory employer costs include a 5% Social Security Fund contribution (capped at THB 750/month per employee) and a Workmen’s Compensation Fund contribution of approximately 0.20% to 1.00% depending on the company's risk classification (up to THB 240,000 per employee), both invoiced monthly. Employers must also pay an annual Disability Fund Levy (e.g., THB 1,020.76 in 2024), calculated based on headcount and the minimum daily wage. Additionally, many employers accrue for severance over three years—typically 1 month in Year 1 (8.33% monthly), and 3 months each in Years 2 and 3 (25% monthly)—to prepare for termination obligations.
Employment Contracts & Probation Rules Employment contracts must include key terms such as job title, salary, schedule, start date, probation period, and termination conditions. Probation is commonly set at 119 days to avoid severance obligations, which begin after 120 days of service. There’s no legal maximum, and probation can be waived with legal approval. Fixed-term contracts are allowed only for seasonal or project-based roles with set start and end dates, capped at two years, and cannot include probation. They may be reclassified if they allow early termination or renewal. Non-compete and non-solicitation clauses are enforceable during and after employment without compensation. Common practice includes a one-year restriction and a penalty of three months’ salary.
Pay and Working Hours The minimum wage is set by the Ministry of Labour and varies by location. As of January 1, 2024, the minimum daily wage in Bangkok is THB 363 (up from THB 353 in 2022), which equates to approximately THB 10,890 per month. Standard working hours are 8 hours per day, 40 hours per week, Monday to Friday. Overtime is capped at 36 hours per week and must be paid unless the employee holds a managerial or supervisory role. Overtime is paid at 150% of the hourly rate on regular days, 200% on holidays, and 300% for overtime hours worked during holidays.
Payroll & PAYE Compliance Payroll is processed monthly from the 1st to the last day, with a cut-off on the 20th and payment on the last day. On-demand payroll is available for an additional fee. Salaries are prorated based on calendar days, using a standard 30-day divisor—regardless of the actual number of days in the month. Gross salary includes base pay and additional payments such as bonuses or allowances. Net salary reflects gross earnings minus mandatory deductions like income tax and 5% social security (capped at THB 750/month). Payslips itemize earnings (e.g., salary, allowances, bonuses, expenses) and deductions (e.g., social security, tax, benefits in kind). Employer contributions to social security are listed separately.
Vacation and Public Holiday Allowances Full-time employees working five days a week are entitled to a minimum of 6 vacation days per year, accruing at 0.5 days per month from the start date. Although Thai law permits vacation only after one year of service, it is common practice to allow use as it accrues, subject to employer approval. Unused days can be carried over, with a 6-day limit expiring on 31 March of the following year. On termination, unused leave is paid out, and any negative balance may be deducted from final pay. Employees may request half days, and there’s no minimum consecutive vacation requirement. Thailand also observes 15–16 national public holidays annually. If a holiday falls on a weekend, the next weekday is observed. Employees required to work on holidays must be paid at 200% of their regular rate.
Income Taxes Thailand has a progressive income tax system on salaries, bonuses, and allowances. Residents (180+ days) must report foreign income brought into Thailand, with tax credits available. Tax is withheld monthly via pay-as-you-earn, with filings due by the 15th of the next month. The tax year is January to December; annual returns are due by 31 March. Rates range from 0% up to 35%, with personal allowances reducing taxable income. Employers provide a Withholding Tax Certificate (“50Tawi”) by 15 February for employee filing.
Expenses, Allowances, and Bonuses Business expenses must clearly relate to company activities and be approved before the payroll cut-off on the 20th to be included in the current payroll. Common reimbursable expenses include phone, internet, coworking, office supplies, travel costs, and business-related meals, all requiring proper receipts. Non-business expenses are taxable and treated as allowances. Employers may provide per diems for meals and accommodation during business travel, with receipts required for reimbursement. Allowances like work-from-home, relocation, or gym membership are discretionary, taxable, and processed manually. Bonuses, whether contractual or discretionary, are taxed as regular income with applicable social security contributions, and withholding tax rates may increase in bonus pay periods.
Statutory Benefits & Pension Requirements Statutory benefits include unemployment, disability, life, pension insurance, public healthcare, and workers’ compensation. Employers contribute 5% for social security covering unemployment and related benefits, and 0.30% for workers’ compensation; employees also contribute 5% for social security. These benefits are mandatory for all employees. Optional benefits, offered at the employer’s discretion, include private health and life insurance, funeral coverage, birthday leave, employee training, phone coverage, and specialized insurances like travel and kidnap. If optional benefits like private insurance are provided, they must be offered equally to all eligible employees.
Maternity, Paternity, Parental, Adoption & Foster Leave Maternity leave lasts 98 days. Employers pay full salary for the first 45 days, and social security covers 50% of the salary from day 46 to 98. Employers may optionally top up the social security portion. Leave cannot be shared with partners. There are no eligibility conditions, and surrogate mothers qualify, but adoptive parents do not. Employees must notify social security and submit a leave request through the employer’s platform. There is currently no legal requirement for paternity leave.
Sick Leave, Bereavement Leave, and Carer’s Leave In Thailand, sick leave is paid at 100% of the regular salary by the employer for up to 30 days; leave beyond 30 days is unpaid. For sick leave lasting three days or more, employers may require a medical certificate from an approved physician. Work-related injuries or illnesses and maternity leave do not count toward this sick leave entitlement. Employees fulfilling military service duties can take up to 60 days of unpaid leave annually. Additionally, employees receive 3 days of paid business leave per year at full salary.
Terminations/Dismissals, Redundancy, Severance, and Resignations In Thailand, termination processes are straightforward with low litigation risk. Employers must provide at least one full pay cycle’s notice or payment in lieu, applicable to full- and part-time employees. Garden leave is allowed but uncommon. Severance pay is mandatory after 120 days of employment, ranging from 30 days’ salary (for 4 months to 1 year of service) up to 400 days’ salary (for over 20 years). Additional severance of 1–2 months’ salary is common in exchange for waiving future claims. Benefits and leave continue accruing during the notice period. No formal disciplinary process is required for unilateral or no-cause terminations. Generally, five types of termination exist under Thai law.
Misclassification Risk Misclassifying employees as independent contractors is taken seriously by regulators and courts. Employers who misclassify face legal action, fines, and must pay back wages, overtime, vacation, and other benefits. They also risk owing unpaid taxes and social security contributions. Beyond financial penalties, misclassification can cause significant reputational damage.
Data & IP Protection Thailand’s Personal Data Protection Act (PDPA) requires employers to handle employees’ personal information carefully. Employers may collect only the data necessary for lawful purposes and only directly from employees. They must protect this data from loss, disclosure, or alteration and delete it after a set period. Employers must obtain employee consent to collect, use, or share personal data. If a data breach occurs, employers must notify the government’s Personal Data Committee. Compliance with PDPA is mandatory to avoid legal risks.
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How much does it cost to hire through an EOR in Thailand?

Three components drive EOR in Thailand pricing:

  1. Employee’s gross salary
  2. Mandatory employer costs—5% SSF, 0.2–1% Workmen’s Compensation Fund, optional 2–15% Provident Fund match
  3. The EOR management fee: Deel EOR charges a flat monthly amount per worker, covering contract generation, payroll, compliance, and local support
Factor Your Own Thailand Entity Deel EOR
One-off setup costs (law firm, capital injection, director fees) THB 3,114,571 THB 0
Ongoing annual costs (accounting, tax filings, audits, payroll software) THB 1,330,895 THB 0
EOR annual management fee N/A THB 234,329 / per employee
Estimated total annual cost THB 4,445,466 THB 234,329
Time to first hire 3 months 1 business day(s)

Deel’s transparent pricing removes capital lock-up and hidden agent mark-ups. Plug your own salary figures into the free Employee Cost Calculator to get a live estimate.

Global Hiring Toolkit
EOR vs. Entity Calculator
Looking for the most cost-effective way to expand your team abroad? Discover the best option for your business with our calculator.

Which Thailand EOR should you choose?

Not all EORs in Thailand are equal. Evaluate providers for:

  1. Entity ownership: A wholly-owned Thai entity ensures faster SSF registration, a single point of liability, and no middleman fees. Deel EOR owns and controls its entity.
  2. Compliance expertise: Look for in-house Thai labor lawyers and PDPA specialists. Deel’s Compliance Hub offers live rule tracking and proactive alerts relevant to your workforce.
  3. Platform breadth: In addition to payroll, you may need background checks, equity plans, or IT asset shipment. Deel bundles these extras for seamless management of full-time employees and contractors.
  4. Global coverage: If Thailand is your first step, you’ll likely expand elsewhere. Deel EOR enables you to replicate the same process for hiring employees in 150+ countries—one contract, one invoice, one SLA.

See also: Owned Entity vs. In-Country Partner: The Best Choice for Global Hiring

Discover how Lloyd’s List Intelligence expanded to new markets with Deel

Lloyd's List Intelligence provides business intelligence, data, and analysis on maritime trade and operations.

As a leader in a complex and regulated market, they faced challenges in expanding and managing teams across multiple locations. They explored different ways to set up entities but found it complicated, as each country had its own payroll regulations and tax requirements.

“We just didn’t have the economies of scale, time, and resources to be able to set up entities in each of those different locations. We went with Deel because they were able to provide us with everything we needed in one platform.”

Hetty Townsend, APAC People And Culture Business Partner, Lloyd's List Intelligence

Learn more

Is Deel Employer of Record a strong choice for hiring in Thailand?

Yes—Deel stands out as a top Employer of Record for hiring in Thailand. Deel’s wholly-owned Thai entity lets you bypass the pain and cost of setting up your own local legal entity, while ensuring full compliance with Thai labor laws and employment regulations. As a G2 leader, Deel is trusted by companies worldwide for fast, compliant hiring and transparent pricing.

With Deel, you benefit from:

  • #1 rated EOR for user satisfaction and the largest market presence
  • Direct, wholly-owned entity in Thailand—no middlemen or compliance risk
  • Hire employees in Thailand in under a week, with fully compliant contracts, payroll, and health insurance coverage
  • Handles all statutory costs: 5% Social Security, Workmen’s Compensation, payroll taxes, and PAYE
  • Transparent, flat pricing—no hidden fees or surprise markups
  • Covers severance, redundancy, and misclassification liabilities
  • Real-time compliance monitoring, local legal support, and AI-powered alerts
  • Onboard and manage talent in 150+ countries from a single dashboard
  • Automate background checks, equity grants, and employee benefits packages
  • Deel IP Guard ensures your IP and data stay protected under Thailand’s PDPA

With Deel EOR, you can focus on growing your business in Thailand while we handle every hiring and compliance detail—let’s explore how this works in practice.

Hire employees in Thailand confidently with Deel Employer of Record

Ready to grow your team in Thailand without the headaches of entity setup, slow bank onboarding, or compliance risks? Deel’s EOR lets you hire, pay, and manage Thai employees in days—not months—while our wholly-owned entity ensures watertight compliance with Thai labor laws and seamless payroll.

Experience true peace of mind with Deel’s transparent pricing, local legal expertise, and real-time compliance monitoring. Book a demo now to see how Deel can help you onboard top Thai talent at speed—no hidden fees, no legal guesswork, just effortless global employment.

FAQs

Most clients onboard their first Thai employee within less than one week after contract signature.

No—Deel handles all local payroll payments and statutory deductions via its Thai entity, so you don’t need to set up a local bank account or legal entity.

Written contracts are strongly recommended under Thai law, and Deel provides locally compliant templates in both Thai and English.

Probation is typically up to 119 days; Deel’s contracts are fully compliant with this rule.

Yes—Deel auto-enrolls your employees at the correct rates (5% SSF, 0.2–1% WCF) from day one.

Deel withholds and remits PAYE and SSF contributions to Thai authorities directly.

All legal entitlements—annual leave, sick leave, maternity leave, Social Security, health insurance, and severance—are included.

Yes—Deel manages lawful terminations, handles severance (up to 400 days’ wages), and ensures compliance with notice periods and Thai labor law.

Absolutely—Deel’s platform complies with PDPA and uses IP Guard to ensure your intellectual property and employee data remain secure.

Misclassification is a serious risk; using Deel’s EOR eliminates your exposure to back pay, fines, payroll taxes, and statutory liabilities.

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About the author

Jemima is a nomadic writer, journalist, and digital marketer with a decade of experience crafting compelling B2B content for a global audience. She is a strong advocate for equal opportunities and is dedicated to shaping the future of work. At Deel, she specializes in thought-leadership content covering global mobility, cross-border compliance, and workplace culture topics.

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