Payroll is a critical part of a business’s internal operations, so organisations from foreign countries must know details of local payroll practices to be fully compliant with the regulations. As an experienced payroll service provider, TG Group has compiled some info on Payroll Regulations in Thailand:
In Thailand, provincial authorities determine the minimum wage, which also differs depending on the location of the workplace.
Employees are typically paid in local currency (Thai baht) monthly. However, some companies may choose to pay employees on a weekly basis based on their internal policies and agreements with employees.
Employees in Thailand have a standard workweek of 48 hours, with a maximum of 8 hours per day. Anything beyond this is considered overtime and is limited to 36 hours per week.
For all overtime work, employers must compensate their employees with extra pay. The overtime pay is 1.5 times the regular hourly wage.
Management roles are generally exempt from overtime requirements.
Thailand implements a social security system that gives employees coverage in the aspects of disability, health, maternity, unemployment, and death. The system named the Social Security Fund (SSF).
Employers must register employees with the Social Security Fund and make monthly contributions on their behalf. They contribute 5.2% to 6% of an employee’s wage to the latter’s SSF for pension, health insurance, unemployment, and work injury.
Employee benefits may vary depending on the length of employment, job position, and industry.
For example, employees are entitled to paid annual leave, with the number of days depending on the length of service. Other benefits include sick leave, maternity leave, and retirement plans.
Is your company expanding its business in Thailand or planning to enter the market in this country? TG Group can help to manage your payroll for you to focus on business growth.
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