Thailand’s severance schedule reaches 300 days’ wages for employees with 10+ years of service. That’s the ceiling — and it applies on most terminations, including redundancy. The severance obligation is the cost most foreign employers underestimate when hiring in Thailand. The 119-day probation period exists precisely to give you an exit window before it kicks in. Use it deliberately.
Thailand Employment at a Glance
| Detail | Value |
|---|---|
| Currency | Thai Baht (THB) |
| Official Language | Thai |
| Labour Regulator | Department of Labour Protection and Welfare |
| Working Week | 48 hours maximum (40 hours for office work) |
| Annual Leave | 6 days minimum after 1 year |
| Probation Period | Up to 119 days (to avoid severance obligation) |
Social Security Fund (SSF)
Thailand’s Social Security Fund covers health, disability, maternity, and unemployment benefits:
| Employer | Employee | |
|---|---|---|
| SSF Contribution | 5% | 5% |
| Provident Fund (voluntary) | Varies | Varies |
SSF is calculated on monthly wages capped at THB 15,000 — maximum contribution is THB 750/month from each party.
Labour Protection Act
The Labour Protection Act B.E. 2541 (1998) and its amendments set the core employment floor:
- Overtime: 1.5× regular rate on working days; 3× on holidays
- Annual Leave: Minimum 6 days after completing 1 year of employment
- Sick Leave: 30 days per year with pay (medical certificate required for 3+ consecutive days)
- Maternity Leave: 98 days total (45 days paid from SSF; the employer covers the remainder)
Severance Pay
Severance is mandatory on most terminations — redundancy, restructuring, or termination without cause. The schedule:
| Service Duration | Severance |
|---|---|
| 120 days – 1 year | 30 days wages |
| 1–3 years | 90 days wages |
| 3–6 years | 180 days wages |
| 6–10 years | 240 days wages |
| 10+ years | 300 days wages |
The standard probation period is kept below 120 days specifically to avoid triggering the first severance tier during the initial assessment period. If you use probation strategically, keep it under 119 days and document performance standards from day one.
Using an EOR in Thailand
EOR providers covering Thailand:
- Deel — covers Thailand through an owned entity
- Multiplier — strong Thailand coverage, ASEAN-focused
- Remote — covers Thailand
- Oyster — covers Thailand
Key Considerations
Work permits for foreign nationals: Foreign nationals must obtain a Work Permit from the Department of Employment before commencing work — not after, not simultaneously. Working without a permit is a criminal offence for both the employee and the employer. Your EOR manages the permit application for eligible roles.
Four-to-one foreign worker ratio: Thai law generally requires 4 Thai employees for every foreign employee as a condition of work permit approval. This affects staffing plans for companies that want to place multiple foreign nationals in Thailand. Your EOR advises on structuring for compliance.
BOI exemptions: Companies operating under a Board of Investment (BOI) promotion may be exempt from certain foreign worker quota requirements. If your business holds a BOI licence, confirm whether your EOR can accommodate BOI-specific employment structures — not all providers have this capability.
Minimum wage: Thailand’s minimum wage varies by province. Confirm your EOR applies the correct provincial rate for each employee’s work location. Bangkok and major industrial provinces have higher rates than rural regions.
