In this article you will find the following sections:
Take a look at your Ultimate Guide to Employer of Record services in Thailand.
Looking for a great economic market to expand into?
Thailand is a vibrant country with an emerging economy and very low unemployment.
The industrial and service sectors are both popular, with the former playing a large role in Thailand’s burgeoning exports, while the latter revolves around tourism and finance. Around half of the country’s population works in agriculture.
As a whole, Thailand’s economy has been growing steadily since the mid-1990s, and this pattern looks to continue over the coming decades.
Are you looking to expand into new markets? If Thailand is a consideration, it is important to understand the various options that are available for you.
Before you start recruiting staff in Thailand, it’s necessary to register your business properly with the government.
If you aren’t a lawyer or international business attorney, it’s important to hire a firm that understands Thai law when it comes to business registration and incorporation. This is one of the many steps that Aster Lion can assist with to ensure you are able to set up and be fully compliant.
If you’re an SME or multinational company looking to have a base of operations in Thailand, you’ll need to set up the proper work permits and visas.
You’ll need advice on the type of visa required, how to deal with immigration services when workers come to Thailand, including work permit applications, employment passes and dependent passes. Your foreign workers must have the right entry, renewal, and exit paperwork filed with government agencies.
The ratio of Thai to foreign workers must be at least 4-to-1 or greater. So for every five employees at your company, just one can be a non-Thai citizen. Keep this in mind when your company applies for work visas for staff.
Further, you can only hire a non-Thai citizen when you prove that a Thai citizen cannot do the work you require.
Finding a job in Thailand as a foreigner faces other challenges. First, each prospective employee needs a non-resident visa before they can even begin looking for work. Then, once they’ve found a job, the employer has to apply for a work permit for that person.
This takes time and money. Hiring a business that specializes in Employer of Record (EOR) services for foreign companies looking to do business in Thailand gives you leverage to shorten timeframes and know exactly what costs you’ll incur for hiring foreign workers.
Potential workers and business owners must begin applying for visas through the Thai consulate or embassy in their home country. Thailand has five different visas, depending on the type of work an employee will be performing in the country.
Most workers require a Non-Immigrant Category B visa to work in Thailand.
Before you apply for a work visa, gather these documents:
The process of getting a work visa is as follows:
Non-immigrant work visas last up to three months in Thailand. You’ll need to enter Thailand before it expires to apply for your work permit.
Once you have secured the proper Thai visa, you can apply for a work permit (different from a work visa) in Thailand through the Department of Employment.
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Both the company and its employees must apply for work permits in Thailand. Workers need to arrive in the country first before applying for a work permit.
Employers must provide the Thai embassy with these documents in Thai or English:
Employees also must meet certain standards when applying for work permits in Thailand.
Documents needed include:
Workers must submit these documents with the Ministry of Labor in Bangkok or the Department of Employment in the area where they work.
The process takes about seven days to complete.
A company that specializes in Employment of Record services in Thailand can help with this entire process.
Benefits of an Employer of Record include:
While incorporating your business, it’s important to understand some basic Thai labor laws.
There is no unemployment insurance in Thailand, which is part of the reason why the unemployment rate is amazingly low. Employment law in Thailand does have some marked differences from other countries.
You must pay for 45 days of maternity leave for pregnant mothers. Mothers are entitled to take up 98 days of maternity leave.
There are 13 paid public holidays each year. Thai New Year, every April, is a three-day holiday, meaning you must pay each employee for 15 paid holidays annually.
Every employee has the right to severance pay if you terminate their employment. Exceptions include if the employee neglects their job duties, fails to show up for work, or disobeys work rules, among others. Employees who have worked 4 to 12 months receive 30 days’ severance pay. After a year, that amount goes up.
After working for your company for a year, employees get six days of paid leave.
These are just the basics. Thai labor law has many complexities, nuances, and eccentricities you must follow. If you are unfamiliar with Thai labor law and you don’t understand it, your company may face challenges. This is why many companies rely on Employer of Record experts to help them navigate through the processes and ensure they are up and running in a fully compliant manner.
Much like labor laws, when it comes to Thailand payroll, company payroll and taxes in Thailand come with certain stipulations and regulations you must follow.
Employers in Thailand must withhold income tax, employee payroll tax, and social security contributions from their pay before submitting it to the Thailand Revenue Department.
Income tax rates in Thailand range from 0% for lowest-earning employees up to 35% for workers earning more than earning more than 4 million Thailand baht.
Social security contributions for employer and employee amount to 5% of salaries, topping out at 750 Thailand baht per month.
You must issue pay slips for each pay period, either online or on paper, for every employee so they know how much was deducted from their gross pay.
Your company is under obligation to maintain payroll records for at least 7 years.
Payroll outsourcing in Thailand is legal, and it’s a great way to save your company money by handling mundane payroll services and ensuring that you fully comply with Thai law. It stands to reason that investing in great Employer of Record Services in Thailand would help you immensely in easing your entry into Thailand.
Benefits of payroll services in Thailand include:
A professional Thailand Employer of Record services (EOR provider) can help your firm fulfill your Thailand staffing requirements and you can save money, paperwork, labor costs, and legal troubles by working with a firm that specializes in Thailand EOR & payroll solutions.
These specialized firms already know and comply with Thai employment law, whether you need a local labor force supplemented by in-person or remote workers, or you just need assistance paying your employees properly.
Reach out to our team for a free consultation to understand the requirements and steps involved in getting you set up and running a business in Thailand.
We’ll help you navigate through the entire process to ensure you’re up and running with the least amount of steps. You can reach us directly on email@example.com or enter your details below and someone from our team will reach out.
Aster Lion is an Employer of Record based in Thailand providing the following services:
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