Payroll Administration

Thailand's Salary System

Stipulated working hours and overtime system

  • Standard Working Hours: For generally harmless work, the maximum working hours per day are 8 hours, and the maximum per week are 48 hours. If a day’s work is less than 8 hours, the employer can negotiate with the employee to make up the remaining time on another workday, but the total daily working hours must not exceed 9 hours.
  • Hazardous Work: The maximum working hours per day are limited to 7 hours, and the maximum per week is 42 hours.
  • Overtime Limits and Compensation: Overtime work per week must not exceed 36 hours. Employers must pay overtime at a rate of 1.5 to 3 times the normal hourly wage.
  • Rest Time: Employees are entitled to at least one day of rest per week, and the interval between rest days per week must not exceed 6 days.

Salary system and related benefits

  • Minimum Daily Wage: Thailand’s minimum wage varies by province, ranging from 328 to 354 baht per day.
  • Statutory Severance Pay: Payable increasing based on the employee’s length of service. For example, 120 days to 1 year of service requires at least 30 days’ pay; 10 to 20 years of service requires at least 300 days’ pay; and over 20 years of service requires at least 400 days’ pay.
  • Social Security Contributions: Employers must deduct 5% of an employee’s monthly salary for social security contributions (maximum salary base of 15,000 baht, meaning a maximum monthly deduction of 750 baht). Employers must also contribute an equal amount, remitted by the 15th of the following month.
  • Paid Leave: Employees are entitled to at least 13 National Day (statutory public) holidays, at least 6 days of annual leave, and at least 3 days of personal leave annually. Sick leave can be taken when necessary, but paid sick leave cannot exceed 30 days per year; maternity leave is a maximum of 98 days (with a maximum of 45 paid days).
  • Salary during work stoppage: If an employer temporarily ceases operations (not due to force majeure), they must pay 75% of the wages of affected employees. If force majeure renders operations impossible, all wages may be withheld.

Our advantages

  • Experienced payroll team, familiar with local regulations and industry standards
  • High-standard data security and confidentiality mechanisms
  • Reduced corporate administrative costs and error risks
  • Ensuring employees receive their salaries on time and accurately

Kindly contact us to learn more about our payroll administration services.

MSMC ASIA

#19-06 160 Robinson Rd, SBF Center, Singapore 068914