Employee Leasing / Outstaffing in Thailand

Content:

• Advantages of Employee Leasing in Thailand
• Employee Leasing Services Offered by FMC Group
• Advantages of the Thai market
• Recruitment in Thailand
  • Minimum Wage and Payroll
  • Social Contributions and Taxes
  • Working Hours and Overtime
  • Vacation Days
  • Parental Leave and Sick leave
  • Notice Period

• 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.

• 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.

• 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.

Minimum Wage and Payroll

• The daily minimum wage in Thailand goes from THB 313 (<EUR 8.50) to THB 336 (<EUR 9.10), depending on the region.
• Salaries are paid on the last working day of every month.
• It is very common for employers in Thailand to give a 13^th month bonus, despite it not being legally mandatory.

Social Contributions and Taxes

Working Hours and Overtime

• Legal working hours in Thailand cannot exceed 8 hours per day and 48 hours per week.
• Overtime work cannot exceed 36 hours per week and is paid at a rate of 150% of the base salary on weekdays and 200% on weekends and public holidays.

Vacation Days

• Employees in Thailand have the right to take a minimum of 6 vacation days per year after their first year of service, but most employers give between 10 and 15 days of paid vacation every year.
• Thailand commemorates 13 public holidays (15 days):
  • New Year’s Day: January 1^st (1 day)
  • Makha Bucha Day: Late February or early March (1 day)
  • Chakri Day: April 6 (1 day)
  • Songkran Celebration (Thai new year): April 13-15 (3 days)
  • Labor Day: May 1^st (1 day)
  • Coronation Day: May 5 (1 day)
  • Visakha Bucha Day: Late May or early June (1 day)
  • 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.

Notice Period

• The minimal notice period for employees wishing to resign in Thailand is 30 days, but employers have the right to specify a longer notice period in the employment contract.