Employee Leasing Thailand

Thanks to its plethora of trade agreements, Thailand represents an important destination for companies wishing to expand their business into the Southeast Asian market in a cost-efficient way.

About Employee Leasing in Thailand

The country’s important logistical infrastructures, tax incentives, and highly-skilled workforce are some of the encouraging factors that make Thailand a great option for business expansion.

Employee leasing can be one of the easiest, fastest, and safest ways to enter the Thai market and test the waters before fully expanding into the country. Thanks to the flexible services offered by FMC Group, companies can measure their business potential in Thailand in a risk-free way. By covering the entire administrative process related to hiring and managing local employees in Thailand, FMC Group allows businesses to be compliant with local laws and requirements, allowing them to focus solely on their growth strategy in the Thai market.

Get in Touch with Us

Stephan Dorn
Managing Partner

Advantages of Employee Leasing in Thailand

Employee leasing in Thailand allows for a fast, easy, and flexible market entry to Thailand and the member countries of the Association of Southeast Asian Nations (ASEAN).
Through employee leasing, clients can control their market growth according to their own strategy and they can focus exclusively on business decisions, without worrying about administrative procedures and legal regulations. Utilizing a local entity facilitates international business expansion without the need to establish a legal presence, allowing companies to navigate complex hiring regulations and reduce costs.

Employee Leasing Services Offered by FMC Group

Search, scouting, and selection of candidates according to the client’s needs;
Negotiation and conclusion of employment contracts;
Payment of social security contributions and taxes according to the Thai labor law;
Accounting of the payroll according to international standards;
Payment of expenses and allowances after the client’s approval;
Monitoring of paid leaves and vacations;
Negotiation and implementation of private health insurance if needed;
Maintenance of continuous contact with the client regarding their employees.

Management and Reporting Flow of Employee Leasing Services

Advantages of the Thai Market

Thailand is located in the heart of Asia and enjoys convenient trading opportunities with major Asian markets, such as India, China, and ASEAN countries. It also has a strong domestic consumer market with a population of over 69 million. The country’s economy is among the fastest-growing in the region.
The Thailand Board of Investment, a government agency affiliated with the Ministry of Industry, offers several tax incentives for foreign businesses.
Thailand is equipped with high-quality infrastructure, including seven international airports, six seaports, and two international river ports. The entire country is also well-connected with roads and highway networks.
Thailand has Free Trade Agreements with the ASEAN, the United States, the European Free Trade Association (EFTA), the EU, India, Pakistan, Sri Lanka, and Turkey. Thailand also has trade agreements with Australia, China, New Zealand, and Japan, among other countries.
Thailand enjoys high political stability since the 2019 elections, thanks to the establishment of a highly-representative government that includes members from 18 different political parties.
To find out more about why Thailand is an interesting investment destination, you can visit the website Thailand Board of Investment.

Recruitment in Thailand

Social Contributions and Taxes

Employer Contributions
Pension	3.00%
Health Insurance	1.50%
Unemployment	0.50%
Work Injury	0.20% – 1.00%
Total	5.20% – 6.00%
Employee Contributions
Pension	3.00%
Health Insurance	1.50%
Unemployment	0.50%
Total	5.00%
Employee Income Tax
Up to THB 150,000 yearly	0.00%
Between THB 150,001 and THB 300,000	5.00%
Between THB 300,001 and TBH 500,000	10.00%
Between THB 500,001 and TBH 750,000	15.00%
Between THB 750,001 and TBH 1,000,000	20.00%
Between THB 1,000,001 and TBH 2,000,000	25.00%
Between THB 2,000,001 and TBH 5,000,000	30.00%
From TBH 5,000,001	35.00%

New Year’s Day: January 1
Makha Bucha Day: Late February or early March (1 day)
Songkran Celebration (Thai new year): April 13-15 (3 days)
Labor Day: May 1 (1 day)
Coronation Day: May 5 (1 day)
Visakha Bucha Day: Late May or early June (1 day)
Constitution Day: July 17
Asahna Bucha Day: Late July or early August (1 day)
H.M. Queen’s Birthday: June 3 (1 day)
H.M. King’s Birthday: July 28 (1 day)
Chulalongkorn Day: October 23 (1 day)
Constitution Day: December 10 (1 day)
New Year’s Eve: December 31 (1 day)

Parental Leave and Sick Leave
Female employees in Thailand can take up to 98 days of maternity leave. The employer covers 45 days of the leave and the social security fund covers another 45 days. Meanwhile, 8 days can either be unpaid or covered by the employer.
Employees can be absent from work for medical reasons for a maximum duration of 30 days per year. Employers have the right to request a medical certificate if the employee takes a sick leave of 3 or more consecutive days.
Male employees can obtain a national service leave for up to 60 days per year if they are required to join the military. The pay during this leave is the same as if they were working normally.
Male and female employees have the right to obtain a sterilization leave if they want to go through a sterilization procedure. The duration of the leave is fixed by the employee’s medical certificate and the payment is covered by the employer.

Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.