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
- +65 66765644
- +65 80386423
- +65 80386423
- enquiry@msmc.global