---
title: "Thailand Tax and Payroll 2026 | PIT, Social Security"
description: "Thailand payroll 2026: the Social Security ceiling rose to THB 17,500/month, capping contributions at THB 875/month each, with eight income tax bands to 35%."
canonical: https://www.teamed.global/country-hiring-guides/thailand/tax-and-payroll
---

Thailand · Tax & payroll child

Served by Teamed vetted partner-entity network in Thailand

# How does *Thailand payroll tax* work in 2026?

On 1 January 2026 the Social Security wage ceiling climbed from 15,000 to THB 17,500/month. Each side now pays up to THB 875/month, where the old cap was 750 baht. So a Thai payroll built before this year understates the real cost of every salaried hire.

Last reviewed 13 June 2026 · Thailand guide

![Bangkok skyline along the Chao Phraya river at golden hour, office towers catching warm light.](/images/country-guides/thailand-tax-payroll.webp)

Illustration · Bangkok, Thailand

Answer.cite this

Thailand payroll in 2026 has two main employer costs. The employer pays Social Security at 5% of the employee's wage. That contribution is capped, because it stops at a wage ceiling.

From 1 January 2026 the wage ceiling rose to THB 17,500/month. So the most an employer pays per person is THB 875/month. The employee pays the same 5%, capped at the same amount.

Income tax (PIT) runs across eight bands. The first 150,000 baht of yearly taxable income is exempt at 0%. Rates then rise from 5% to a top rate of 35%. The employer withholds tax each month and pays it to the Revenue Department.

## What does an employer pay in Thailand Social Security?

The employer pays Social Security at 5% of the employee's monthly wage. This funds the Social Security Fund.

The cost is capped. From 1 January 2026 the wage ceiling is THB 17,500/month, so the most an employer pays is THB 875/month per person (Social Security Act B.E. 2533).

| Employer contribution | Rate | Applies to |
| --- | --- | --- |
| Social Security Fund | 5% | Monthly wage up to the ceiling of THB 17,500/month |

### The Social Security Fund and the 2026 ceiling

The Social Security Fund is Thailand's mandatory state scheme, covering sickness, maternity, disability, death, old-age pension, child allowance, and unemployment. The employer pays 5% of each employee's wage, and the employee pays the same. Contributions are only charged on wage up to a ceiling. From 1 January 2026 that ceiling rose to THB 17,500/month, up from 15,000 baht. The maximum an employer pays per person is now THB 875/month, up from 750 baht. The government pays a further share into the fund on top of the two sides. The new ceiling is the first step of a phased increase, so employer cost on higher salaries rises again later this decade.

## What does an employee pay from a Thailand salary?

The employee pays Social Security at 5% of their monthly wage. The employer deducts it and matches it.

It is capped at THB 875/month from 1 January 2026, on wage up to THB 17,500/month. Income tax comes off on top of this (Social Security Act B.E. 2533).

| Employee deduction | Rate | Applies to |
| --- | --- | --- |
| Social Security Fund | 5% | Monthly wage up to THB 17,500/month |
| Personal income tax (PIT) | 5% to 35% | Annual taxable income, withheld monthly |

### Social Security on the employee side

The employee contributes 5% of monthly wage, matched by the employer. The same THB 17,500/month ceiling applies, so the most an employee pays is THB 875/month. Below the ceiling the figure is simply 5% of actual wage.

### Income tax is withheld at source

Thailand runs a withholding system for salaried staff. The employer works out the income tax due across the year, divides it across the pay periods, and deducts a slice each month. The employee then files an annual return to settle the final figure. Personal allowances and deductions reduce taxable income before the bands apply, so two people on the same gross salary can owe different tax.

## Thailand personal income tax bands for 2026

PIT runs across eight bands. The first 150,000 baht of yearly taxable income is exempt at 0%.

Rates then climb through 5%, 10%, 15%, 20%, 25%, and 30%, up to a top rate of 35% (Revenue Code).

| Annual taxable income (baht) | Rate |
| --- | --- |
| 0 to 150,000 | 0% |
| 150,001 to 300,000 | 5% |
| 300,001 to 500,000 | 10% |
| 500,001 to 750,000 | 15% |
| 750,001 to 1,000,000 | 20% |
| 1,000,001 to 2,000,000 | 25% |
| 2,000,001 to 4,000,000 | 30% |
| Over 4,000,000 | 35% |

Thailand income tax is progressive, so each band only applies to the income that falls inside it. The first 150,000 baht of yearly taxable income is taxed at 0%. The next slice up to 300,000 baht is taxed at 5%, and so on up to 35% on income over 4,000,000 baht.

### Taxable income is not gross salary

Tax is charged on taxable income, which is gross pay less personal allowances and deductions. Thailand allows a standard expense deduction on employment income, a personal allowance, and further allowances for a spouse, children, parents, insurance, and provident-fund payments. The order of the calculation matters. Get the allowances wrong and the tax figure is wrong, even when every band is right. Teamed's payroll applies the allowances in the correct order on every run.

## How does Thailand payroll withholding and filing work?

The employer withholds income tax from each salary and pays it to the Revenue Department by the 7th of the next month.

Social Security is separate. The employer remits it to the Social Security Office by the 15th of the next month.

Social Security Office · contribution remittance

The employer must deduct the employee's Social Security contribution and remit it, together with the employer's own contribution, to the Social Security Office by the **15th day of the month following the deduction**. Late remittance carries a penalty under the Social Security Act.

Source: [Social Security Office Thailand](https://www.sso.go.th/wpr/main/login)

Thailand pays salaried staff at least once a month, which sets the rhythm of the payroll run. Two filings come off that run, and they go to two different bodies on two different dates:

- **Withholding income tax (PND.1)** to the Revenue Department, by the 7th of the following month (the 15th if filed online)
- **Social Security contributions (SPS 1-10)** to the Social Security Office, by the 15th of the following month

Each employee also gets an annual withholding statement, and the employer files a year-end summary with the Revenue Department. The employee then files a personal return by the last day of March after the tax year. Missing a filing triggers a penalty from each authority, because the Revenue Department and the Social Security Office run separate penalty regimes.

1. Collect pay data Gather salary, allowances, and any taxable benefits for the month before the run closes.
2. Work out taxable income Apply the standard expense deduction and the personal allowances first. These reduce the income that tax is charged on, so the order matters.
3. Calculate withholding tax Run the annual income tax bands on the projected yearly taxable income, then divide the result across the pay periods to get the monthly slice.
4. Calculate Social Security Take the contribution from the employee and add the matching employer share, both capped at the monthly wage ceiling.
5. File and remit Pay withholding tax to the Revenue Department by the 7th and Social Security to the Social Security Office by the 15th of the following month. Each body runs its own penalty regime.

## Pension and social funds in the Thailand payroll stack

The state pension sits inside Social Security. The 5% employer contribution funds old-age pension alongside sickness, maternity, and unemployment cover.

There is no separate mandatory occupational pension. A workplace provident fund is voluntary, set up by agreement, not by law.

Thailand does not split retirement out into its own mandatory deduction. The old-age pension is one of the benefits funded by the single Social Security contribution. The employer pays 5% and the employee pays 5%, both capped on wage up to THB 17,500/month from 1 January 2026.

### Provident funds are optional

Many Thai employers add a registered provident fund on top of Social Security. It is a voluntary savings scheme, agreed between employer and staff, not a legal requirement. Employer and employee each choose a contribution rate within the limits the fund rules allow. Because it is optional, it does not feature in the statutory minimum payroll cost.

### What Thailand does not have

Thailand has no statutory 13th-month salary. A year-end bonus is common in practice but stays discretionary unless a contract or consistent custom makes it a fixed term. There is also no statutory Christmas or holiday subsidy. So the mandatory payroll stack is Social Security plus withheld income tax, and nothing more.

## How does Teamed handle Thailand payroll 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.

Withholding tax, Social Security, and the full Thailand employment law stack run on **one platform**.

**Real HR and legal experts** handle your Thailand hires, from the first employment contract through every monthly withholding filing and Social Security remittance. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice, so you see the Social Security contribution and the withheld income tax as separate lines, never a blended figure.

EOR payroll, contractor onboarding, and entity setup all live on **one platform**. A Thailand contractor who converts to payroll keeps their record. That same employee can **graduate** from EOR to your own Thailand entity without switching systems. Run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the full picture, including the THB 17,500/month ceiling that took effect on 1 January 2026. EOR is the right model for a first Thailand hire, **until it isn't**. Start from [the Thailand hiring overview](/country-hiring-guides/thailand).

Key sources: [Revenue Department PIT schedule](https://www.rd.go.th/english/6045.html), [Social Security Office](https://www.sso.go.th/wpr/main/login), and the [Labour Protection Act B.E. 2541](https://www.ilo.org/dyn/natlex/docs/WEBTEXT/49727/65119/E98THA01.htm).

## Frequently asked questions

What does an employer pay in Thailand Social Security in 2026?

The employer pays Social Security at 5% of the employee's monthly wage. Contributions are charged only on wage up to the ceiling, which rose to THB 17,500/month on 1 January 2026. So the most an employer pays per person is THB 875/month, up from 750 baht under the old 15,000 baht ceiling.

What is deducted from a Thailand employee's salary?

Two things come off a salaried employee. Social Security at 5% of monthly wage, capped at THB 875/month, matched by the employer. Then personal income tax, withheld each month based on the annual bands, which run from 5% up to 35% after personal allowances.

What are the Thailand personal income tax bands for 2026?

Income tax is progressive across eight bands. The first 150,000 baht of yearly taxable income is exempt at 0%. Then 5% to 300,000 baht, 10% to 500,000, 15% to 750,000, 20% to 1,000,000, 25% to 2,000,000, 30% to 4,000,000, and 35% above 4,000,000 baht.

When must Thailand payroll taxes be filed and paid?

There are two separate deadlines. Withholding income tax goes to the Revenue Department by the 7th of the following month, or the 15th if filed online. Social Security contributions go to the Social Security Office by the 15th of the following month. The employee files a personal income tax return by the last day of March after the tax year.

Does Thailand have a 13th-month salary or pension deduction?

No. Thailand has no statutory 13th-month salary, and no statutory Christmas or holiday subsidy. The old-age pension is funded inside the single Social Security contribution of 5% from the employer and 5% from the employee, not by a separate pension deduction. A workplace provident fund is voluntary.

Teamed Legal Operations

The Thailand payroll mistake we see most is treating Social Security and income tax as one filing on one date. They are not. Withholding tax goes to the Revenue Department by the 7th, Social Security goes to the Social Security Office by the 15th, and each runs its own penalty. Miss either and you can be penalised twice for what looks like a single late month.

A note from Tom Price-Daniel

Thailand payroll is two filings, not one. Withholding income tax to the Revenue Department by the 7th, Social Security to the Social Security Office by the 15th.  
The Social Security ceiling rose to THB 17,500/month on 1 January 2026, so the cost per hire went up.  
Get the allowances right before you trust the tax figure.

Tom Price-Daniel · Co-founder, Teamed

## Related Thailand guides

- [Hiring in Thailand, overview](/country-hiring-guides/thailand)parent
- [Termination and severance in Thailand](/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 Revenue Department and the Social Security Office, or speak to a qualified professional, before relying on any specific framework. The Social Security wage ceiling rose to 17,500 baht on 1 January 2026 as the first phase of a planned increase, so figures for higher salaries will change again later this decade.