---
title: "Thailand Employer Cost Breakdown 2026 | Social Security"
description: "Thailand employer social security caps at THB 875/month per employee from 2026, on a wage ceiling of THB 17,500/month. Line-by-line on what a Thailand hire really costs."
canonical: https://www.teamed.global/country-hiring-guides/thailand/cost-breakdown
---

Thailand · Cost breakdown child

Served by Teamed vetted partner-entity network in Thailand

# How much does it really cost to *hire in Thailand* in 2026?

Thailand's employer social security contribution stops at THB 875/month per employee from 1 January 2026. The 5% rate applies only to the first THB 17,500/month of pay. Pay anyone above that and your social cost is fixed, so a Thailand hire carries one of the lowest capped employer add-ons in the region.

Last reviewed 13 June 2026 · Thailand guide

![Bangkok skyline at dusk with the Chao Phraya river and the Sathorn business district towers lit warm gold under a pink evening sky.](/images/country-guides/thailand-cost-breakdown.webp)

Illustration · Bangkok, Thailand

Answer.cite this

Hiring in Thailand adds very little on top of gross salary. The social security cap is the number that does the work. The employer pays 5% into the Social Security Fund. From 1 January 2026 that 5% only applies to the first THB 17,500/month of pay.

So the employer social cost stops at THB 875/month per employee. Pay someone more than the ceiling and the contribution does not rise. There is no separate state pension levy on top of this. There is no legal 13th-month or holiday bonus in Thailand.

Income tax is the employee's cost, not yours. You withhold it and remit it. Thailand has no national monthly minimum wage. The floor is set per day by province, so the rate depends on where the employee works. Paid leave is light. You get 6 days of annual leave after a year, plus at least 13 days public holidays.

## The headline, what a Thailand hire actually costs

Start with gross salary. Add the employer Social Security Fund contribution of 5%. From 2026 it applies only to the first THB 17,500/month of monthly pay.

So the social cost tops out at THB 875/month per employee. The table below shows illustrative totals. The figures are computed from verified rates. They are not statutory figures.

Thailand's mandatory employer add-on is small and capped. The only standing payroll-funded contribution is the [Social Security Fund](https://www.sso.go.th/wpr/main/login) at 5%. From 1 January 2026 that rate is charged only on pay up to THB 17,500/month, so the employer contribution maxes out at THB 875/month per employee. There's no second state pension levy and no legal annual bonus.

| Line | Illustrative cost on a 100,000 THB monthly salary | Source |
| --- | --- | --- |
| Gross salary | THB 100,000/month | Contract |
| Employer Social Security at 5% on pay up to the THB 17,500/month ceiling | THB 875/month, the capped maximum | [Ministerial Regulation on SSF wage base B.E. 2568 (2025)](https://www.dlapiper.com/en/insights/publications/2025/12/thailands-new-social-security-wage-ceilings-has-officially-published) |
| State pension levy beyond Social Security | None | N/A |
| Legal 13th-month or holiday bonus | None, bonuses are discretionary | Labour Protection Act B.E. 2541 (1998) |
| Annual leave, 6 days per year after one year (paid, cost built into salary) | Included in salary | [Labour Protection Act B.E. 2541 (1998)](https://www.ilo.org/dyn/natlex/docs/WEBTEXT/49727/65119/E98THA01.htm) |
| Paid sick leave, up to 30 days per year (event-driven, employer-funded) | Variable, modest per employee | Labour Protection Act B.E. 2541, s.57 |
| **Capped employer add-on at this salary** | **THB 875/month, under 1% of gross** | **Illustrative** |

These figures are illustrative. They're computed from the 5% employer rate applied to the THB 17,500/month ceiling, which gives the THB 875/month maximum. They aren't statutory figures. Any salary above the ceiling carries no extra Social Security cost. At a 100,000 THB salary the capped contribution is under one percent of gross.

Add Teamed from $599 per employee per month and you see the full picture. Use the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to run your own salary figures.

1. Start with gross salary Confirm the agreed gross monthly salary in Thai baht. This is the base every other line builds on. Check the daily minimum wage for the province if the salary is near the floor.
2. Apply Social Security to the ceiling Add the employer Social Security contribution on pay up to the monthly wage ceiling. Any salary above the ceiling carries no extra contribution, so the social cost is fixed for higher earners.
3. Withhold income tax each run Calculate and withhold personal income tax for each employee, then remit it to the Revenue Department. Income tax is the employee's cost, not an employer add-on.
4. Model leave and sick pay as event costs Annual leave, sick pay, and maternity leave are employer-funded but event-driven. Budget them as variable costs that arise when used, not as fixed monthly charges.
5. Plan for termination costs early Redundancy severance scales steeply with tenure and notice pay sits on top. Build fair-process documentation and a severance reserve into your headcount planning from the first hire.

## Social Security, the one employer contribution that matters

The Social Security Fund is the only standing employer contribution in Thailand. You pay 5% and the employee pays 5%.

From 1 January 2026 the rate applies only to the first THB 17,500/month of pay. So each side caps at THB 875/month per employee. You remit both halves by the 15th of the next month.

### How the Social Security Fund works

Every private-sector employer registers staff with the Social Security Office. The employer contributes 5% of wages and the employee contributes a matching 5%. The contribution covers sickness, maternity, disability, death, child allowance, old age, and unemployment benefits. It's the single mandatory payroll-funded cost on the employer side.

Social Security Office Thailand · new wage ceiling from 1 January 2026

Employer rate: **5%**. Employee rate: **5%**. From 1 January 2026 each side pays only on the first **THB 17,500/month** of monthly pay. So each contribution caps at **THB 875/month** per employee. The ceiling rose from 15,000 to THB 17,500/month for 2026.

Source: [Ministerial Regulation on SSF wage base B.E. 2568 (2025), under Social Security Act B.E. 2533 s.33](https://www.dlapiper.com/en/insights/publications/2025/12/thailands-new-social-security-wage-ceilings-has-officially-published)

### The 2026 ceiling change

For years the Social Security wage base sat at 15,000 THB a month, which capped each party at 750 THB. From 1 January 2026 the base rose to THB 17,500/month, lifting the cap to THB 875/month per party. This is the first step of a phased increase that runs to the end of 2028. Budget the new THB 875/month cap for any 2026 hire. The 5% rate itself did not change.

### Remittance and timing

You deduct the employee's 5%, add your own 5%, and remit both to the Social Security Office. The deadline is the 15th of the following month. Miss it and a late-payment penalty applies on the unpaid amount. Getting the remittance filed on time matters more to most Thailand payroll budgets than the size of the contribution, because the contribution is so tightly capped.

### No second pension levy

Thailand does not run a separate mandatory occupational pension on top of the Social Security Fund. The old-age benefit sits inside the Fund itself. Any retirement saving above that is contractual, set by the employment terms or a provident fund the employer chooses to offer. For cost modelling, treat Social Security as your only standing contribution unless the contract adds a provident fund.

## Income tax, what you withhold from every salary

Thailand uses a progressive personal income tax with eight bands. Income tax is the employee's cost. You withhold it each month and remit it to the Revenue Department.

The first 0% band covers taxable income up to 150,000 THB a year. The top rate reaches 35% above 4,000,000 THB a year. None of this is an employer cost in cash terms.

Withholding income tax is the employer's main monthly tax job in Thailand. Each pay run, you calculate and withhold personal income tax for each employee, then remit it to the Revenue Department. Income tax does not add to your employer cost. It becomes a liability only if you withhold or remit it wrongly.

### The 2026 Thailand income tax bands

The eight progressive bands below apply for the 2026 tax year. They run on annual taxable income, after personal allowances and deductions. The first band is fully exempt.

| Annual taxable income band | Marginal rate |
| --- | --- |
| Up to THB 150,000 | 0%, exempt |
| THB 150,001 to 300,000 | 5% |
| THB 300,001 to 500,000 | 10% |
| THB 500,001 to 750,000 | 15% |
| THB 750,001 to 1,000,000 | 20% |
| THB 1,000,001 to 2,000,000 | 25% |
| THB 2,000,001 to 4,000,000 | 30% |
| Over THB 4,000,000 | 35%, top rate |

Source: [Revenue Code, progressive personal income tax schedule](https://www.rd.go.th/english/6045.html)

The top marginal rate is 35% on income above 4,000,000 THB a year. That's the employee's tax cost, not yours. The employee files an annual return and settles any balance by the 31 March (last day of March following the taxable year). Your job is to withhold and remit each month, and to issue the year-end withholding certificate.

## Leave and sick pay, what the law requires

Thailand's paid leave floor is light. Employees get 6 days of paid annual leave after one full year of service, plus at least 13 days paid public holidays.

Sick pay is employer-funded. You pay wages for up to 30 days of sick leave per year. A medical certificate may be required once leave runs past 3 days.

Thailand's leave entitlements sit in the [Labour Protection Act B.E. 2541 (1998)](https://www.ilo.org/dyn/natlex/docs/WEBTEXT/49727/65119/E98THA01.htm). The employer funds them directly. They're modest by regional standards, and many employers offer more than the floor to stay competitive.

### Annual leave

The legal minimum is 6 days of paid annual leave once an employee has completed one full year of service. Many employers grant more, and pro-rate leave in the first year as a matter of practice. The law sets the floor, not the market rate. Budget for a more generous policy if you're hiring skilled staff in Bangkok.

### Public holidays

Employers must give at least 13 days paid public holidays a year, including National Labour Day. These are separate from annual leave and are not subtracted from the 6 days entitlement. Where an employee works a public holiday, holiday pay premiums apply.

### Sick pay

An employee can take paid sick leave with wages for up to 30 days a year. The employer pays these wages directly. You may ask for a certificate from a qualified doctor once sick leave runs beyond 3 days. Budget sick pay as an event-driven cost, not a fixed monthly charge.

### Maternity leave

Maternity leave is up to 98 days, including time for pregnancy-related medical visits. The employer pays wages for 45 days of that leave. The Social Security Fund covers part of the remainder. Thailand has no statutory paternity leave for the private sector, so any paternity time is a matter of company policy.

## The costs that don't appear on a salary sheet

Three items sit outside the small monthly contribution. They're real. They arrive when you least expect them.

Minimum wage compliance, redundancy severance, and termination notice can each cost far more than the capped Social Security contribution if you don't plan for them.

### Minimum wage, set by the day and by province

Thailand has no national monthly minimum wage. The floor is a daily rate, set province by province by the Wage Committee under the [Ministry of Labour](https://www.mol.go.th/en/minimum-wage). The lowest tier sits in the far-southern provinces of Narathiwat, Pattani, and Yala. The highest tier sits in tourism and industrial provinces such as Phuket and Chon Buri, with Bangkok near the top. Rates are revised periodically and published in Thai in the Royal Gazette, so check the current rate for the province where the employee works before any hire near the floor. The daily basis means you convert to a monthly figure using the actual working days, not a flat 30.

### Redundancy severance

Statutory severance is owed on dismissal without cause, and it scales steeply with tenure. It runs from 30 days of wages after 120 days of service, to 90 days after one year, 180 days after three years, 240 days after six years, and 300 days after ten years. The longest-service band reaches 400 days of wages after twenty years. Severance applies on no-cause dismissal, not on resignation. For a long-tenure employee this is a large lump sum. Budget it from year one (Labour Protection Act B.E. 2541, s.118).

### Notice on termination

For an indefinite contract, the employer or employee gives notice on or before a pay date, to take effect at the next pay date. The notice need not run longer than three months. Notice pay is owed on top of any severance and accrued leave. A poorly handled dismissal can add a payment in place of notice to the severance bill, so a clean process is the cheapest protection (Labour Protection Act B.E. 2541, s.17).

### Remittance accuracy

Social Security contributions are due to the Social Security Office by the 15th of the following month. Wages are paid at least once a month under the pay-cycle rule. Late Social Security remittance attracts a penalty on the unpaid amount. Because the contribution itself is so tightly capped, accurate and on-time filing matters more to a Thailand payroll budget than the rate.

## How Teamed handles Thailand employment costs for you

Teamed becomes your legal [employer of record](/lp/employer-of-record) in Thailand for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency.

Income tax withholding, Social Security, leave tracking, and the full Thailand compliance stack run on **one platform**.

**Real HR and legal experts** handle your Thailand hires from the first offer letter through every Social Security remittance and year-end tax certificate. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Every employer cost **passes through at cost, itemised** on every invoice. You see the Social Security line and any leave liability. Nothing is buried inside the management fee.

EOR payroll, contractor onboarding, and entity setup all live on **one platform**. A Thailand contractor who converts to employment keeps their record. That same employee can **graduate** from EOR to your own Thai entity without switching systems. EOR is the right structure for a first Thailand hire, **until it isn't**. Teamed plans the move with you when the model no longer fits. Start from [the Thailand hiring overview](/country-hiring-guides/thailand) or run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the full picture.

## Frequently asked questions

What does it cost to hire an employee in Thailand in 2026?

The only standing employer add-on is Social Security at 5%, and from 2026 it applies only to the first THB 17,500/month of monthly pay. So your contribution caps at THB 875/month per employee. There's no second pension levy and no legal 13th-month bonus. For a mid-to-senior hire the social cost is under one percent of gross salary. Add Teamed from $599 per employee per month for the full employer-of-record service.

How does the Social Security contribution cap work for employers?

Employer Social Security is 5% of wages, charged only on the first THB 17,500/month of monthly pay from 1 January 2026. Once an employee earns at or above the ceiling, the employer contribution is fixed at THB 875/month and goes no higher. The employee pays a matching 5%, capped at the same THB 875/month. This makes the contribution a predictable fixed cost for any salary above the ceiling.

Does Thailand have a minimum wage and a 13th-month salary?

Thailand has no national monthly minimum wage. The floor is set by the day, province by province, by the Wage Committee, so the rate depends on where the employee works. The far-southern provinces sit at the bottom and tourism and industrial provinces sit at the top. There is also no legal 13th-month or holiday bonus. Annual bonuses are discretionary unless an employer has paid them consistently enough to create an entitlement. Check the current provincial daily rate before hiring anyone near the wage floor.

What paid leave is a Thailand employee entitled to?

The legal minimum is 6 days of paid annual leave after one full year of service, plus at least 13 days paid public holidays. Paid sick leave runs to 30 days a year, funded by the employer, with a doctor's certificate possible once leave passes 3 days. Maternity leave is up to 98 days, of which the employer pays 45 days. Many employers offer more than the floor to stay competitive.

What is the redundancy severance scale in Thailand?

Statutory severance is owed on dismissal without cause and scales with tenure. It runs from 30 days of wages after 120 days, to 90 days after one year, 180 days after three years, 240 days after six years, 300 days after ten years, and 400 days after twenty years. Severance applies on no-cause dismissal, not on resignation, and notice pay sits on top. Budget it as a termination cost from the first hire.

Teamed Legal Operations

The Social Security cap is what makes Thailand so predictable to budget. The employer contribution stops at a fixed monthly figure no matter how senior the hire, so the standing cost barely moves with salary. The numbers that swing a Thailand budget are the ones people forget: provincial minimum wage, and severance that scales hard with tenure. Plan those from day one and Thailand is one of the cheaper places in the region to employ.

A note from Tom Price-Daniel

Thailand employer social security caps at THB 875/month per employee from 2026. Above the ceiling, the contribution stops rising.  
There's no legal 13th-month bonus and no second pension levy, so the standing employer add-on is one of the lowest in the region.  
Know the cap. Know the provincial wage floor. Know the severance scale before you sign the offer.

Tom Price-Daniel · Co-founder, Teamed

## Related Thailand guides

- [Hiring in Thailand, overview](/country-hiring-guides/thailand)parent
- [Thailand tax and payroll](/country-hiring-guides/thailand/tax-and-payroll)sibling
- [Thailand termination and severance](/country-hiring-guides/thailand/termination-and-severance)sibling
- [Employer of Record overview](/lp/employer-of-record)core
- [Pricing, Zero FX Fixed](/pricing)core
- [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Thailand Social Security Office, the Ministry of Labour, and the Revenue Department before relying on any specific figure. Worked examples in this guide are illustrative only and computed from verified rates. They are not statutory figures. The Social Security monthly wage ceiling rose to 17,500 THB from 1 January 2026 under the Ministerial Regulation on the SSF wage base B.E. 2568 (2025), the first step of a phased increase running to the end of 2028. Daily minimum wage rates are set per province by the Wage Committee and revised periodically; confirm the current provincial rate before hiring near the floor.