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Thailand

Basic Economic Summary

Overview

Thailand is known for its technology acumen due to which many organisations depend on the country for its talent. The hiring dipped slightly in 2020 but from 2021, many companies are now looking to hire aggressively and maintain competitiveness in the market. According to the Talent Trends 2021 Report, 33% of the nation’s companies are aiming to increase their team sizes.

During the most difficult times in the world economy, Thailand stood resilient, especially in e-commerce and other tech-based services. The promising agriculture sector is also bringing new opportunities in the chemical and agritech industries. According to the current economic trend, sectors such as industrial, manufacturing, FMCG, technology, telecommunications and health care are expected to witness a hiring spree.

An interesting development is that 42% companies in Thailand invested in upskilling their employees to keep up with the current and future trends. This will go a long way in bridging the skill gap and ensuring a future-proof business.

Basic Information

  • Local Languages: Thai (Official)
  • Major Economic Hubs: Bangkok, Chiang Mai, Pattaya, Phuket
  • Capital: Bangkok
  • Currency: Thailand Baht (THB)
  • Population: 70.05 million
  • Date Format: dd/mm/yyyy

Useful Information

  • GDP Per Capita (in USD, 2020): 6199.99
  • Exchange Rate (THB/USD): 0.03
  • PISA Ranking (2018): 60

Local Universities

Renowned Local Universities:

University Rankings
Mahidol University Ranking in Thailand: 1, World Ranking: 519
Chulalongkorn University Ranking in Thailand: 2, World Ranking: 720
Chiang Mai University Ranking in Thailand: 3, World Ranking: 974
Kasetsart University Ranking in Thailand: 4, World Ranking: 1061
Prince of Songkla University Ranking in Thailand: 5, World Ranking: 1098

Salary Data

Average Salary of Jobs (Bangkok):

Job Title Average Salary Range (THB) Average Salary Range (USD)
Accounting Manager 69,200 - 226,000 2067.52 - 6752.32
Fullstack Developer 52,800 - 155,000 1577.53 - 4631.01
Data Scientist 79,900 - 241,000 2387.21 - 7200.48
Software Developer 51,300 - 143,000 1532.72 - 4272.48
Product Manager 74,600 - 225,000 2228.86 - 6722.44
Business Development Manager 71,100 - 246,000 2124.29 - 7349.87

More information about average salaries in Thailand can be found on Robert Walters’ 2020 salary survey.

For tech talent, candidates moving jobs expect a 20%-30% increment in salary. With most candidates expecting 7%-15% annual salary increment.

Talent Sourcing Tips

Taxes

Employer Payroll Tax

Type of Tax Contribution (%)
Pension 3%
Health Insurance 1.5%
Unemployment 0.5%
Work injury 0.2% – 1%

Link to Employer Payroll Tax.

Contribution is capped at THB750 (5 percent of THB15,000) per month.

Employee Payroll Tax

Type of Tax Contribution (%)
Pension 3%
Health Insurance 1.5%
Unemployment 0.5%

Link to Employee Payroll Tax.

Contribution is capped at THB750 (5 percent of THB15,000) per month.

Employee Monthly Income Tax

Net Taxable Income (Baht) Contribution (%)
12,500 – 25,000 5%
25,001 – 41,666.67 10%
41,666.67 – 62,500 20%
83,333.33 – 166,666.67 25%
166,666.67 – 416,666.67 30%
416,666.67 35%

Thailand follows a progressive income tax model. Link to Employee Income Tax.

Minimum Wage & Payroll

Minimum Wage

313 THB to 336 THB dependent on region

Payroll Cycle

Dependent on contract.

Bonus

13th month salary

Not mandatory.

Working Hours & Statutory Leave

Maximum working hours

The maximum working hours are 48 hours a week.

Maximum overtime hours

Overtime hours cannot exceed 36 hours.

Overtime pay

PeriodRate
Normal Days1.5 times hourly rate
Normal working hours on HolidaysDouble the hourly rate
Overtime on HolidayTriple the hourly rate

Public Holidays

18 public holidays can be found here.

Annual Leave

Employees are entitled 6 days of annual leave with a year of employment. For those with less than one year of employment, leaves can be taken on a pro-rate basis.

Sick Leave

Years of Social Insurance ContributionLeave Days Per YearPaid Hospitalisation Leave
< 153015
15 – 304030
30 years6045

Parental Leave

Maternity Leave

Employees are entitled to 6 months of paid-leave.

Prenatal Leave

Employees are entitled up to 5 days

Paternity Leave

Employees are given 5 – 14 days of paternity leave.

Offboarding & Termination

The termination process is relatively simple with notice to be given for the types of contracts as well as severance pay.

Termination Process

Reason of TerminationOn the Last Day of Employment
Expiry of the labour contractNo notice needed
Lawful unilateral termination by the employee30 days for (definite contract) or
45 days (indefinite contract)

Some instances such as enterprise operation cessation do not need a filling

Notice Period

Contract TypeNotice Period
Seasonal Contract ( <1 year of employment)3 days
Definite Contract ( 1 to 3 years)20 days
Indefinite Contract45 days

Severance Pay

Severance allowance of 1/2 months worth of salary for each year of employment.

Probation period

6 to 60 days depending on qualification and education of employee.

A separate probation agreement can be signed.

Probationary period applied to managerial positions of enterprise can be up to 180 days.

VAT

Thailand has a standard VAT of 7%.

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