What Is an Employer of Record in Thailand?
An Employer of Record (EOR) in Thailand is a locally registered company that becomes the
legal employer of your Thai workforce. It lets companies based anywhere hire people in
Bangkok, Chonburi, Rayong, Chiang Mai, or anywhere else in the country without registering
a Thai limited company, working through the foreign ownership rules, or holding the
registered capital and Thai headcount that work permits require.
The EOR takes on the statutory employer duties, including the employment contract, THB
payroll, tax withholding, Social Security and Workmen’s Compensation contributions, the
new Employee Welfare Fund, statutory leave, accrued severance, and lawful termination.
You keep full control of the employee’s role, priorities, and performance.
This Model Works Especially Well When:
- You want a commercial, engineering, or support team in Thailand without a Thai subsidiary.
- You are supporting manufacturing or supply chain operations and need people close to the Eastern Economic Corridor.
- You are testing the market and do not want company registration and foreign ownership questions on the critical path.
- You have contractors in Thailand who look like employees and need converting.
- You want the severance and termination exposure modeled properly before you commit to headcount.
Komp delivers this as part of a single workforce platform, so your Thai employees sit
alongside contractors, EOR workers, and direct employees in other countries, governed by
the same data, workflows, and controls.
How Komp’s Employer of Record Works in Thailand
Komp becomes the legal employer for your Thai team members and takes on their statutory
liabilities, while you run the work. Here is what that looks like in practice.
Skip the Department of Business Development registration, the foreign ownership analysis
that decides whether you need a license or a majority Thai shareholder, the registered
capital, tax and VAT registration, and the Social Security Office employer file.
Komp Activate runs onboarding, contracts, and benefits; Komp PayOps runs THB payroll with
withholding and every statutory contribution; Komp TimeOps tracks working time and leave;
and compliant offboarding, including notice, documented grounds, and settlement within the
statutory deadlines, closes the loop in one flow.
Komp Workforce gives HR, Finance, and Legal a single source of truth for Thai and global
headcount, covering payroll status, fully loaded employer costs, accrued severance
liability, leave balances, work permit expiry dates, and compliance alerts, with audit
trails built in.
See How It Works →
What Komp Handles Under EOR in Thailand
Komp manages every part of the Thai employment relationship so your team can focus on
the work, not the paperwork.
Employment documentation and work rules
We issue employment documentation that meets the Labor Protection Act and, where headcount
requires it, maintain the written work rules and the annual employment conditions report
that employers above a staff threshold must file. The filing moved to a prescribed digital
procedure under the 2025 amendment and is due each January.
Employer registration across every agency
Komp maintains registration with the Revenue Department, the Social Security Office, the
Workmen’s Compensation Fund, and now the Employee Welfare Fund, and enrolls each new hire.
Social Security registration is due within thirty days of the first employee starting.
THB payroll and tax withholding
Komp PayOps calculates monthly payroll and withholds personal income tax under the
progressive resident schedule, remitting on the statutory monthly cycle and filing the
annual returns. Severance carries its own tax treatment with a statutory exemption band,
which we apply on exit.
Social Security and Workmen’s Compensation
Employer and employee Social Security contributions are each calculated on a capped
monthly wage base, and the ceiling rose in January 2026 under a published multi-year
schedule, which raised the maximum monthly contribution for everyone. Workmen’s
Compensation is employer-funded and rated by industry risk. Foreign employees working
lawfully are covered on the same basis as Thai nationals.
The Employee Welfare Fund
A long-dormant fund under the Labor Protection Act began collecting contributions in
October 2026 from employers at or above a headcount threshold, at a modest rate from
both employer and employee, applied to the full wage with no ceiling. Employers operating
a qualifying provident fund or an equivalent termination benefit scheme are exempt. This
is the newest obligation in the Thai payroll and the most commonly missed.
Severance accrued from day one
Statutory severance rises in bands with continuous service, reaching four hundred days
of wages at twenty years, and is calculated on wages including regular fixed allowances.
Komp provisions it monthly and shows it in your cost model, so the liability is visible
while it is still small rather than arriving as a single number at exit.
Leave, working time, and the 2025 expansions
Komp TimeOps tracks annual leave, which starts at a low statutory minimum and is usually
improved contractually, paid sick leave, public holidays, and the parental entitlements
that expanded in December 2025, including longer maternity leave with more employer-paid
days and two new paid leave categories covering newborn medical complications and spousal
support.
Exits documented properly
We manage separations with correct notice or payment in lieu, which must be paid on the
termination date rather than with the final payroll, and all other sums settled within
the statutory window. Where a dismissal is for cause, the ground is stated at the time
of dismissal, because a reason not given then cannot be relied on afterwards.
See How It Works →
Employer of Record vs Entity Setup in Thailand
In Thailand, the choice between an Employer of Record and your own entity
depends on how quickly you need to hire, whether foreign ownership
restrictions apply to your activity, and whether you plan to build a
permanent operation at scale.
| Criteria |
Employer of Record (Komp) |
Own Thai Entity |
| Best suited for |
Market entry, commercial and support teams, contractor
conversion, small to mid-sized headcount
|
A manufacturing or operating business at scale, or one
pursuing investment promotion
|
| Time to hire |
As soon as the candidate accepts
|
Registration is only the start, since ownership structure,
capital, and agency registrations follow before anyone
is hired
|
| Foreign ownership |
Not your problem
|
Service activities are restricted, so the structure usually
needs a majority Thai shareholder, a license, a treaty
route, or investment promotion
|
| Registered capital |
None
|
A statutory minimum, plus a further amount for each foreign
work permit the entity intends to hold
|
| Thai headcount requirement |
Carried by Komp
|
Four Thai employees required for every foreign employee,
unless investment promotion applies
|
| Severance liability |
Provisioned and visible monthly
|
Yours, accruing from day one, and reaching four hundred
days of wages at long service
|
| Compliance ownership |
Managed by Komp with AI-assisted monitoring and human review
|
Your responsibility, including Social Security, the welfare
fund, withholding, and work rules
|
| Workforce visibility |
Thai data unified with your global workforce in one platform
|
Often a separate local payroll provider and a separate
HR system
|
8.5 EOR vs PEO vs BPO: Which Model Fits
These three are used loosely across Southeast Asia, and the difference
matters because it determines who carries employment liability.
| Question |
Employer of Record |
PEO / co-employment |
BPO / outsourcing |
| Who legally employs the worker |
The EOR, on its own payroll
|
Shared, which requires you to have a local entity
|
The BPO provider
|
| Who directs the work |
You
|
You
|
The provider, against a service level
|
| Do you need a local entity |
No
|
Yes
|
No
|
| Do you choose the individual hired |
Yes
|
Yes
|
Usually not
|
| Where employment liability sits |
Primarily with the EOR
|
Shared
|
With the provider
|
| Best suited to |
Building your own named team in Thailand
|
Augmenting an existing Thai entity
|
Buying a managed function or process
|
8.6 Employer of Record Cost in Thailand
EOR pricing in Thailand varies by provider, service scope, and team size.
The comparison worth running is not the fee alone. It is the fee against
company registration, the ownership structure the foreign business rules
push you toward, registered capital, local accounting and audit, and the
agency filing cycle that comes with being a Thai employer.
Thailand is also unusual in how its employer cost is distributed, and it
is worth understanding before modelling anything. Statutory payroll
contributions are low by regional standards, because Social Security is
capped at a modest monthly wage base and the other funds are small
percentages. The real employer cost in Thailand is severance, which
accrues from the first year, rises in bands with service, and is calculated
on wages rather than base salary alone. A cost model that captures the
contributions and ignores the accrual will understate a Thai hire
substantially.
EMPLOYER CONTRIBUTION LINES
| Contribution |
Who pays |
How it behaves |
| Social Security Fund |
Employer and employee
|
A matched percentage applied to a capped monthly wage
base, so the cost flattens quickly above a modest salary;
the ceiling rose in January 2026 and steps up again on a
published schedule
|
| Workmen’s Compensation Fund |
Employer only
|
A small percentage of annual wages set by industry risk
classification rather than chosen, applied to a capped
wage base and adjusted over time by claims experience
|
| Employee Welfare Fund |
Employer and employee
|
A new obligation from October 2026 for employers above a
headcount threshold, applied to the full wage with no
ceiling, with an exemption where a qualifying provident
fund is in place
|
| Severance accrual |
Employer only
|
Not a contribution but the largest real cost, rising in
bands with continuous service to four hundred days of
wages at twenty years
|
WHAT SHAPES YOUR PRICE
-
Length of service you expect:
severance moves in steps rather than smoothly, so the expected tenure
of a role changes its true cost.
-
Compensation design:
severance is calculated on wages including regular fixed allowances,
so allowance-heavy packages enlarge the liability.
-
Headcount:
the welfare fund applies only at or above a staff threshold, and
written work rules are required above a threshold too.
-
Citizenship of each hire:
foreign employees bring work permit capital and Thai headcount
requirements that sit with the employing entity.
-
Integrations and reporting:
HRIS, ERP, and finance system connections.
WHY EOR DELIVERS STRONG ROI
-
Faster revenue:
your Thai hire starts contributing without waiting on company
registration, capital, and agency files.
-
Lower overhead:
no Thai entity, local accountant, audit, or in-country HR staff.
-
Lower risk:
severance provisioned rather than discovered, and exits documented
in the way a labor court expects.
-
Less admin:
one platform, one invoice, one partner for Thai employment.
Request Your Custom Thailand Pricing →
Who Should Use an EOR in Thailand?
Manufacturing and supply chain businesses
Thailand is the automotive and electronics base of mainland Southeast Asia. Place
sourcing, quality, engineering, and supplier management staff near the plants and
ports without a Thai corporate structure for each engagement.
Companies serving the Eastern Economic Corridor
The corridor across Chonburi, Rayong, and Chachoengsao concentrates advanced
manufacturing and logistics investment, and a presence there often needs people
before it needs an entity.
Technology and services companies
Build commercial, support, and delivery teams in Bangkok, where the regional talent
market is deepest and the cost base sits well below Singapore.
Companies with contractors already in Thailand
If someone works set hours on your systems with no other clients, the arrangement
may be employment in substance, which brings retroactive contributions and, on
termination, the full severance scale. Converting through an EOR closes that
exposure.
Investment promotion removes the work permit capital and headcount tests and brings
substantial tax benefits, but it applies to qualifying activities and takes time.
An EOR covers the period before promotion is granted, or the roles that sit outside it.
HR and Finance leaders
Get predictable costs, consolidated invoicing, accrued severance visible on the
balance sheet rather than at exit, and audit-ready records for every Thai hire.
Why Komp Is Different from Generic EOR Providers
Many providers can put a Thai employee on payroll. Komp is built as workforce
infrastructure, combining AI intelligence, owned payment rails, and human governance
so you can grow in Thailand with confidence.
AI Agent Swarms with human control
Autonomous agents continuously check payroll, classification, contracts, accrued
severance, statutory deadlines, and regulatory change. Recommendations are surfaced
for review before anything is executed: autonomous intelligence, human control.
Severance treated as a liability, not a surprise
Most providers quote a monthly fee and a contribution percentage. Neither tells you
what a Thai hire costs, because the dominant number is an accruing severance
entitlement that rises in steps with service. Komp provisions it from month one and
reports it.
Current with three changes in twelve months
The Labor Protection Act was amended with effect from December 2025, the Social
Security wage ceiling rose in January 2026, and the Employee Welfare Fund began
collecting in October 2026. Any provider or guide written before late 2025 is wrong
in several places, and the welfare fund is the most missed configuration in Thai
payroll today.
Honest about work permits and structure
Thailand attaches registered capital and Thai headcount requirements to the
employing entity and restricts foreign ownership of service businesses. These shape
what an EOR can and cannot do for a foreign hire. Komp sets out the position for your
specific role rather than selling sponsorship as a feature.
AES-256 encryption, SOC 2 Type II, ISO 27001, GDPR compliance, role-based access
control, and AWS hosting with multi-region redundancy protect your Thai employee
data, alongside Personal Data Protection Act obligations.
Komp Activate, Komp Workforce, Komp TimeOps, and Komp PayOps connect hiring,
workforce records, time, and pay across Thailand and 150+ countries.
Start Hiring in Thailand →
Thai Employment Compliance: What Global Employers Must Manage
Thai employers answer to the Department of Labor Protection and Welfare for
employment standards, to the Social Security Office for contributions, to the
Revenue Department for withholding, and to a dedicated labor court for disputes.
These are the areas that matter most, and how Komp covers them.
The Labor Protection Act and its 2025 amendment
The Act is the core employment statute and was amended with effect from December
2025. Maternity leave was extended and the number of employer-paid days increased,
a new paid leave was created for parents of a newborn with medical complications,
a further paid leave was introduced to support a spouse around childbirth, and the
annual employment conditions report for employers above a staff threshold moved to
a prescribed digital filing due each January.
Severance, and why it dominates the cost model
Statutory severance is payable on any employer-initiated termination without one
of the narrow statutory grounds, including redundancy, restructuring, closure, and
poor performance. It rises in bands with continuous service and reaches four
hundred days of wages at twenty years. It is calculated on the final wage rate
including regular fixed allowances, which routinely enlarges the figure beyond
what a base-salary model predicts.
When severance is not payable
The exceptions are a closed statutory list covering dishonesty or an intentional
criminal offence against the employer, intentionally causing loss, gross negligence
causing serious loss, breach of work rules after a valid written warning,
unjustified absence for three consecutive working days, and imprisonment under a
final judgment. The procedural trap is decisive: if the employer dismisses without
severance, the reason must be stated at the time of dismissal, or it cannot be
relied on later and severance becomes payable.
Special severance
Additional entitlements sit above ordinary severance. A relocation that materially
affects employees requires advance notice and allows an employee who refuses to
move to claim a proportion of the ordinary scale. Termination caused by the
introduction of machinery or technology requires advance notice to the labor
inspector and the employees, and triggers a further payment for employees with
longer service, subject to a cap. These stack with ordinary severance rather than
replacing it.
Notice and final payments
Notice for an indefinite contract broadly runs to the next wage payment date, with
a statutory maximum, and may be replaced by payment in lieu. Payment in lieu must
be made on the termination date itself rather than with the next payroll, and all
other outstanding sums are due within a short statutory window. Unpaid statutory
amounts attract interest at a high statutory rate, with a further surcharge where
the withholding is intentional.
Unfair termination
A separate claim sits on top of statutory severance and notice. A dismissal can
comply with the statute and still be found unfair if the employer lacked sufficient
and reasonable cause, and the court may order reinstatement or damages considering
age, service, hardship, the reason for dismissal, and what has already been paid.
Social Security and Workmen’s Compensation
Employer and employee contributions are each a matched percentage of a capped
monthly wage base, and the ceiling rose in January 2026 with further increases
legislated for later years. Workmen’s Compensation is employer-funded, rated by
industry risk, and applied to a capped annual wage. Foreign employees working
lawfully are covered on the same terms as Thai nationals; the exemptions are
role-based rather than nationality-based.
The Employee Welfare Fund
Contributions began in October 2026 for employers at or above a headcount threshold,
from both employer and employee, applied to the full monthly wage with no ceiling.
Employers with a qualifying provident fund or an equivalent termination benefit
scheme are exempt. Registration runs through an electronic service with an employee
roster, and late payment attracts a monthly surcharge.
Income tax withholding
Personal income tax is withheld monthly under a progressive resident schedule and
remitted to the Revenue Department, with annual employer and employee filings.
Severance carries its own treatment, with an exemption band expressed as several
days of wages subject to an absolute ceiling, above which it is taxable.
Work permits and the two ratios
A foreign national needs both a non-immigrant business visa and a work permit, and
the permit is tied to a named employer, a defined position, and a declared
workplace. The employing entity must hold registered capital for each work permit
and employ four Thai nationals for each foreign employee, with higher capital where
the entity is foreign majority. Investment promotion is the route that genuinely
removes both tests. A set of occupations is reserved for Thai nationals regardless
of who sponsors.
Foreign ownership of service businesses
The Foreign Business Act restricts majority foreign ownership of service businesses,
which is why so much activity in Thailand runs through a majority Thai shareholding,
a foreign business license, a treaty route for United States owners, or investment
promotion. This shapes how any service provider operates here, and it is worth
asking any prospective partner how their Thai entity is structured.
Working time and leave
The standard working week and overtime premiums are set by statute, with higher
multiples for holiday work. Statutory annual leave starts at a low minimum and is
almost always improved contractually, paid sick leave is generous by comparison,
and employees are entitled to a minimum number of public holidays each year.
The Number Most Cost Models Miss
In Thailand the payroll contributions are small and the severance is not.
Statutory employer contributions in Thailand are low by regional standards.
Social Security is a matched percentage applied to a capped monthly wage base,
so it flattens quickly; Workmen’s Compensation is a fraction of a percent set
by industry risk; and the Employee Welfare Fund that began collecting in
October 2026 is a modest rate on both sides. Together they commonly land around
two percent of payroll for a professional salary. That figure is what most EOR
comparisons quote, and on its own it is misleading.
The dominant employer cost in Thailand is severance, which accrues from the
first year of service, rises in steps rather than smoothly, reaches four
hundred days of wages at twenty years, and is calculated on the final wage rate
including regular fixed allowances rather than base salary alone. Special
provisions covering relocation and the introduction of machinery or technology
can stack on top, and a separate unfair termination claim sits above all of it,
so a dismissal that is entirely lawful can still be found unreasonable.
None of this makes Thailand a difficult market to hire in. It makes it a market
where the cost of a hire must be modelled across its whole life rather than per
month, and that is exactly what an Employer of Record should be giving you from
the first conversation.
Employer of Record Coverage Across Thailand
Thai employment concentrates in the capital and the industrial corridor to its
south-east, with smaller but real markets in the north and south. Komp lets you
hire compliantly anywhere in the country on the same terms.
Employer of Record in Bangkok
The commercial and administrative center and the deepest talent market in the
country, covering regional headquarters, financial services, consulting,
technology, and the commercial functions of most multinationals operating in
Thailand.
Employer of Record in the Eastern Economic Corridor
Chonburi, Rayong, and Chachoengsao form the industrial heart of the country,
hosting automotive, electronics, petrochemical, and advanced manufacturing
investment along with the deep-sea port and the main industrial estates. The
corridor has its own investment and immigration arrangements.
Employer of Record in Chiang Mai
The northern hub, with a university base, a growing technology and creative sector,
a substantial international community, and a cost base well below Bangkok.
Employer of Record in Phuket and the south
Tourism, hospitality, marine, and an expanding remote-working population, with
employment patterns that are more seasonal than elsewhere in the country.
Employer of Record for remote and hybrid roles
Connectivity is strong across the main urban centers, and the Labor Protection Act
was amended in 2023 to put remote working arrangements on a statutory footing,
including the employee’s right to decline contact outside working hours.
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