Thailand – Innovare Group

Expand into Thailand with Innovare

Navigate Thailand’s unique business landscape effortlessly with Innovare’s comprehensive EOR solutions. From intricate immigration services to seamless payroll administration, we’re your bridge to tapping into this dynamic market.

Brief Overview

Innovare Thailand

Innovare Thailand, a cornerstone of the Innovare Group, empowers seamless business expansion into Thailand’s vibrant market. Leveraging our comprehensive Employer of Record (EOR) services, we ensure your venture’s smooth adaptation to the local business landscape. Our in-depth expertise and unwavering commitment to compliance pave the way for your success.

Expert navigation through Thailand’s dynamic business environment.

Streamlined processes for employing foreign talent and managing payroll.

Dedicated support for ensuring adherence to local laws and regulations.

Specialized solutions for both expatriates and local professionals in Thailand.

Local Expertise

Country-Specific Solutions

Onboarding

In Thailand, a written employment contract outlining key terms must be provided to new hires within 30 days of their start date. This contract fosters transparency by clearly defining job duties, work schedules, compensation details, and leave entitlements, establishing a solid foundation for the employment relationship.

Payroll Services

The payroll cycle in Thailand is generally monthly and is usually paid on the last working day of the month. Standard workweeks are 48 hours, with overtime capped at 36 hours per month. Timely tax filings are crucial, with specific deadlines for both hardcopy and electronic submissions.

Taxes

Thailand operates a progressive income tax system up to 35%. An individual is considered a tax resident if one stayed in Thailand for 180 days or more in a calendar year. All income derived from work performed in Thailand is subject to taxation, regardless of payment location. Residents are also taxed on foreign-sourced income if remitted into Thailand during the year received.

Leave

Thai employees enjoy statutory leave benefits that promote work-life balance and employee satisfaction. These include:

Annual leave: Minimum of 6 days after completing one full year of employment. For employees who have not completed one year of service, the employer may provide a yearly leave on a pro-rata basis, increasing with seniority (up to 12 days after a year upon mutual agreement between employer and employee)
National holidays: 13-16 days off per year, depending on specific holidays observed
Sick leave: Up to 30 days paid leave with a medical certificate
Maternity leave: 98 days paid leave for childbirth

Termination

Employment can be terminated in Thailand where there is ‘just cause’, which includes reasons of criminal offence, employee caused willful damage, negligence causing serious damage to employer/put others at risk, employee violated work rules, regulations or orders even with written warning from employer, employee was absent for 3 consecutive days without notice or any justifiable reason or the employee is sentenced to imprisonment.

Severance pay is mandatory if applicable and determined by the employee’s length of service. Employees working for less than 120 days for the same employer are not eligible to receive any severance payment.

Employees with more than 120 days of service but less than one year are entitled to 30 days severance pay.
Employees with service of 1 year but less than three years are entitled to 90 days of severance pay.
Employees with three years but less than six years are entitled to 180 days severance pay.
Employees with six years but less than ten years are entitled to 240 days severance pay.
Employees with service of 10 years but less than 20 years are entitled to 300 days severance pay.
Employees with 20 years or more are entitled to 400 days severance pay.