Exploring Employment Benefits in Thailand

Exploring Employment Benefits in Thailand

Discover the employment benefits landscape in Thailand, ranging from salary structures across regions to the progression of wages with years of experience. Explore the impact of education on salaries and uncover insights into the gender pay gap in Thailand. Gain knowledge about salary increases, bonus and incentive rates, as well as festive holiday leave. Learn how to effectively pay remote employees in Thailand and explore the possibility of paying them in foreign currencies. Explore this comprehensive guide to employment benefits in Thailand on a global workforce sourcing platform catering to 50+ industries.

Thailand is a popular destination for businesses looking to expand into Southeast Asia. With a population of nearly 70 million people and a growing economy, Thailand is an attractive location for employers looking to establish a presence in the region. As an employer, it is essential to understand the employment benefits that are required by law in Thailand. 

This part will provide an overview of the employment benefits that employers are required to provide to their employees in Thailand.

Salary Structure Across Regions


Source: Average Salary in Thailand 2023 – The Complete Guide

When it comes to salary structures across regions in Thailand, there are a few key things to keep in mind. Here are some factors to consider:

  1. Major cities tend to offer higher salaries: This is especially true in Bangkok, where many international companies are based. Salaries in Bangkok are typically higher than in smaller cities and rural areas.
  2. Cost of living can vary greatly: While salaries may be higher in big cities, the cost of living is also likely to be higher. In general, it is more expensive to live in urban areas, so employees may need higher salaries to maintain their standard of living.
  3. Industry plays a role: Some industries may have higher salaries across the board, regardless of location. For example, technology and finance tend to be high-paying industries.
  4. Local competition matters: Employers in a given region may need to offer higher salaries in order to attract top talent. If there are many companies competing for a limited pool of skilled workers, salaries are likely to be higher.
  5. Government policies can impact salaries: The Thai government sets a minimum wage, which varies by region. This can impact the salaries offered by employers, especially for lower-skilled positions.

Source: Average Salary in Thailand 2023 – The Complete Guide

In 2021, the average monthly income per household in Thailand was highest in Bangkok and the greater Bangkok areas, which amounted to approximately 39,000 Thai baht. Bangkok is the main urban hub in Thailand with the highest population density compared to other regions in Thailand.

Average monthly income per household

Source: Average monthly income per household Thailand 2021, by region

Overall, it is important for employers to do their research and consider all of these factors when determining salary structures. It may be necessary to offer different salaries for employees in different regions, based on the cost of living and local competition. By taking a strategic approach to salary structures, employers attract and retain top talent while also managing their costs effectively.

Progression of Salary with Years of Experience

In general, a person’s salary increases as their years of experience increase. Those with 2-5 years of experience earn on average 32% more than freshers/juniors. Those with over 5 years of experience earn on average 36% more than those with less than 5 years. At 10 years of experience, the salary increases by 21% and by an additional 14% for those with over 15 years of experience.


Source: Average Salary in Thailand 2023 – The Complete Guide

Impact of Education on Salary

Higher education generally results in higher salaries. According to a comparison of various jobs, workers with a certificate or diploma earn 17% more than high school graduates. Those with a Bachelor’s Degree earn 24% more than certificate or diploma holders, while those with a Master’s Degree earn 29% more than Bachelor’s Degree holders. Additionally, PhD holders earn 23% more than Master’s Degree holders on average.


Source: Average Salary in Thailand 2023 – The Complete Guide

Gender Pay Gap in Thailand

Despite the fact that gender should not play a role in determining pay, there is a persistent gender pay gap in many industries and countries, including Thailand. According to recent data, men in Thailand earn an average of 11% more than women across all sectors, indicating that gender bias in compensation is still an issue in the country.


Source: Average Salary in Thailand 2023 – The Complete Guide

Salary Increases for Employees in Thailand

According to available data, it is likely that employees working in Thailand can expect to receive a salary increase of around 8% every 17 months. This information is based on various factors such as industry, job type, and level of experience.


Source: Average Salary in Thailand 2023 – The Complete Guide

Bonus and Incentive Rates in Thailand

According to data from Salary Explorer, bonus rates in Thailand vary depending on the industry and company policy. On average, the annual bonus rate in Thailand is around 2% to 7% of the base salary.


Source: Average Salary in Thailand 2023 – The Complete Guide

Festive Holiday Leave

In Thailand, employers are obligated to provide paid leave for certain holidays in addition to mandatory annual leave. This additional leave is known as festive holiday leave and typically includes the following holidays:

New Year’s Day: Celebrated on January 1st, this holiday marks the start of the Gregorian calendar year and is a public holiday in Thailand.

Songkran: Also known as the Thai New Year, Songkran is celebrated in mid-April and is one of the biggest holidays in Thailand. The holiday is observed for three days, and many people travel to their hometowns to celebrate with family and friends.

National Day: Celebrated on December 5th, National Day commemorates the birthday of His Majesty King Bhumibol Adulyadej, who was the longest-reigning monarch in Thai history. The day is a public holiday in Thailand.

The number of days of festive holiday leave can vary depending on the employer and industry. For example, some companies may offer additional paid leave for other holidays such as Chinese New Year or Eid al-Fitr, depending on the religious and cultural backgrounds of their employees. In general, full-time employees in Thailand are entitled to at least 13 paid public holidays per year, including festive holiday leave.

It’s worth noting that some employers may require employees to work on public holidays, in which case they are entitled to receive additional compensation such as overtime pay or a day off in lieu. Additionally, employees who work on public holidays are entitled to a meal allowance and transportation allowance to cover any additional costs incurred.

In summary, festive holiday leave is an important aspect of employment law in Thailand and ensures that employees are entitled to time off to celebrate important cultural and national holidays. The exact number of days of festive holiday leave may vary depending on the employer and industry, but employees are generally entitled to at least 13 paid public holidays per year.

How do I pay a Thai remote employee?

Employers who are hiring Thai remote employees ensure that they have a reliable and secure payment method in place. Here are some payment methods that can be used to pay a Thai remote employee:

  1. Bank transfer: This is a common payment method that is used to transfer money from one bank account to another. Employers can transfer money directly to their employees’ bank accounts in Thailand.
  1. PayPal: PayPal is a popular payment gateway that is used worldwide. Employers can set up a PayPal account and pay their employees using this method. The employee must also have a PayPal account to receive the payment.
  1. International wire transfer: This is a secure way to transfer money from one bank account to another across borders. The employer will need to provide the employee’s bank details, including the SWIFT code, to transfer money to their bank account.

It is important to consider the following factors when choosing a payment method:

  • Fees: Some payment methods may charge fees for sending and receiving money. Employers must take this into account when choosing a payment method.
  • Exchange rates: When using an international payment method, the exchange rate may fluctuate. Employers must ensure that they are aware of the current exchange rate and factor this into their payment.
  • Security: It is important to choose a payment method that is secure and reliable to avoid any fraudulent activity.

Overall, employers choose a payment method that is convenient, secure, and cost-effective for both themselves and their employees. It is recommended to communicate with the employee and agree on a payment method that suits both parties.

Can Thai remote employees be paid in foreign currencies?

Yes, Thai remote employees can be paid in foreign currencies. However, before deciding to pay an employee in a foreign currency, there are a few things an employer should consider:

  • Exchange rates: Currency exchange rates can fluctuate daily, so it’s important to keep this in mind when paying an employee in a foreign currency. Employers may want to consider using a service that locks in exchange rates for a period of time.
  • Exchange fees: There may be fees associated with converting currency, so employers should factor these costs into their decision to pay in a foreign currency.
  • Payment methods: Employers should discuss with their remote employees how they prefer to receive their payments. There are several options available, including wire transfers, PayPal, and other online payment platforms.
  • Tax implications: Employers should be aware of any tax implications that may arise from paying employees in a foreign currency. It’s recommended to consult with a tax professional to ensure compliance with local regulations.
  • Employment agreements: Employers should ensure that their employment agreements clearly state the currency in which the employee will be paid. This will help to avoid any confusion or misunderstandings down the line.

In summary, while it is possible to pay Thai remote employees in foreign currencies, it is important to consider the above factors and discuss payment methods and currency options with the employee before finalizing the employment agreement.

In Conclusion, Employment benefits in Thailand include mandatory benefits such as annual leave and social security, as well as optional benefits such as health insurance and retirement plans. It is important for employers to understand the various benefits and requirements in order to attract and retain talent and comply with the law. Additionally, understanding the salary structure and average wages across regions can help employers determine competitive salaries for their employees. Finally, ensuring proper payment methods for remote employees and compliance with currency exchange regulations can help facilitate a smooth and successful employment relationship.

The views expressed in this article are the author’s own and do not reflect Talent’d’s views, opinions or policies.

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