How is Payroll Calculated in Thailand?
In Thailand, payroll is governed primarily by the Labour Protection Act B.E. 2541 (1998), the Revenue Code, and the Social Security Act. Wages are almost always paid monthly, and employers act as the withholding agent: each pay run, the employer deducts Personal Income Tax (PIT) and the employee's Social Security Fund contribution from gross pay, then remits both to the authorities on the employee's behalf. The employer also pays its own matching social security contribution and a workmen's compensation premium on top of salary cost.
Net pay: from gross salary to take-home
An employee's net (take-home) pay is the gross salary minus the mandatory deductions. In simplified terms:
Net pay = Gross salary − Employee social security (5%, capped) − Withheld PITPayment of wages
Under the Labour Protection Act, wages, overtime, and holiday pay must be paid at least once a month unless another arrangement more favourable to the employee is agreed. Payment must be made in Thai baht at the workplace, or by bank transfer with the employee's consent. On termination, the employer must settle all outstanding wages within a short statutory period. Most employers run a single monthly cycle, commonly paying at or near month-end.
Overtime and holiday pay
Overtime and work on rest days or public holidays attract premium rates that must be added to payroll. The statutory minimum rates are:
Overtime on a normal working day
1.5× the hourly wage
Work on a holiday (within normal hours)
2× the normal rate (monthly-paid staff who already receive holiday pay get 1× extra)
Overtime on a holiday
3× the hourly wage
Type of work
Minimum pay rate
Overtime on a normal working day
1.5× the hourly wage
Work on a holiday (within normal hours)
2× the normal rate (monthly-paid staff who already receive holiday pay get 1× extra)
Overtime on a holiday
3× the hourly wage
Personal Income Tax (PIT)
Thailand taxes employment income under a progressive scale from 0% to 35%. Tax is charged on net (taxable) income — that is, assessable income after deducting the standard expense allowance and personal allowances. Each rate applies only to the slice of income within its band, not to the whole salary.
An individual who is present in Thailand for 180 days or more in a calendar year is a tax resident. Residents are taxed on Thai-sourced income and, in certain cases, on foreign income brought into Thailand; non-residents are taxed only on Thai-sourced income. Employers withhold PIT from every salary payment using the progressive table below.
PIT progressive tax brackets
Net taxable income (THB per year)
Tax rate
Net taxable income (THB per year)
Tax rate
0 – 150,000
Exempt (0%)
150,001 – 300,000
5%
300,001 – 500,000
10%
500,001 – 750,000
15%
750,001 – 1,000,000
20%
1,000,001 – 2,000,000
25%
2,000,001 – 5,000,000
30%
Over 5,000,000
35%
Deductions and allowances
Before applying the brackets, employment income is reduced by a
standard expense deduction of 50% of income, capped at THB 100,000, followed by personal allowances. The most common allowances include:
- Personal allowance: THB 60,000 for the taxpayer
- Spouse allowance: THB 60,000 (where the spouse has no income and does not file separately)
- Child allowance: THB 30,000 per child (with an additional amount for a second and subsequent child born from 2018 onwards)
- Social Security contributions: deductible up to the amount actually paid
- Provident fund, life insurance, and approved investment allowances, subject to their own caps
Because allowances change frequently, employers should confirm the current year's figures with the Revenue Department when setting up withholding.
Social Security Fund (SSF)
Most private-sector employees are compulsorily insured under Section 33 of the Social Security Act. Both the employer and the employee contribute 5% of monthly wages each, and the government adds a further share. Contributions are calculated only on wages between THB 1,650 and THB 17,500 per month, so the maximum contribution is THB 875 per month from each side (5% × THB 17,500). Any salary above THB 17,500 does not increase the contribution.
The SSF funds benefits including sickness, maternity, invalidity, death, child allowance, old-age pension, and unemployment. Employers must register new employees with the Social Security Office (SSO) and remit both shares by the 15th of the following month.
Monthly SSF contributions at a glance
Since 1 January 2026 the wage ceiling has risen to THB 17,500 per month (max THB 875 each), up from the long-standing THB 15,000 (max THB 750). Further phased increases lift the ceiling to THB 20,000 (2029) and THB 23,000 (2032). Always confirm the ceiling in force for the payroll month you are running.
Government
~2.75%
Up to ~THB 481
Contributor
Employee
Rate
5%
Monthly amount
Up to THB 875
Contributor
Employer
Rate
5%
Monthly amount
Up to THB 875
Contributor
Government
Rate
~2.75%
Monthly amount
Up to ~THB 481
Withholding Tax & Statutory Filing
Employers are legally responsible for withholding PIT from each salary payment and filing it with the Revenue Department, along with the monthly social security return to the SSO. Missing these deadlines exposes the company to surcharges and penalties, so most employers automate the calendar below.
Key payroll filings and deadlines
PND 1
Monthly return of PIT withheld from employees. Filed by the 7th of the following month (extended to around the 15th for e-filing). Filing is now electronic.
PND 1 Kor
Annual summary of wages paid and tax withheld for all employees, due by end of February for the previous year.
SSO 1-10
Monthly social security contribution return (employer + employee shares), filed with the SSO by the 15th of the following month.
PND 91
Annual personal income tax return filed by each employee for employment income, due by 31 March (paper) or around 8 April (online) for the previous tax year.
PND 1
Monthly return of PIT withheld from employees. Filed by the 7th of the following month (extended to around the 15th for e-filing). Filing is now electronic.
PND 1 Kor
Annual summary of wages paid and tax withheld for all employees, due by end of February for the previous year.
SSO 1-10
Monthly social security contribution return (employer + employee shares), filed with the SSO by the 15th of the following month.
PND 91
Annual personal income tax return filed by each employee for employment income, due by 31 March (paper) or around 8 April (online) for the previous tax year.
Payslip requirements
When wages, overtime, or holiday pay are paid, the employer must provide the employee with documentation showing the payment details and the employee's signature as evidence. In practice this is a payslip that itemises gross pay, overtime, allowances, PIT withheld, the social security deduction, and net pay. Employers must also keep payroll and time records and make them available for inspection.
Provident Fund & Workmen's Compensation
Beyond the mandatory Social Security Fund, two further schemes affect Thai payroll: a voluntary provident fund and the employer-only Workmen's Compensation Fund.
Provident Fund (voluntary)
A provident fund is a voluntary, employer-sponsored retirement savings scheme registered under the Provident Fund Act. Where offered, both the employer and the employee typically contribute between 2% and 15% of wages, with the employer's contribution rate at least matching the employee's. Employee contributions are tax-deductible (within statutory limits) and the employer's contributions are a deductible business expense, making the provident fund a popular retention and tax-planning benefit.
Workmen's Compensation Fund (employer-only)
The Workmen's Compensation Fund covers employees who are injured, fall ill, become disabled, or die as a result of work. It is funded entirely by the employer, at an annual rate of 0.2% to 1% of annual wages depending on the industry's risk level. The wage used to calculate the premium is capped at THB 240,000 per employee per year. The premium is generally paid annually to the Social Security Office.
Thailand Payroll Processing
Because payroll in Thailand ties together the Revenue Department (PIT and PND filings), the Social Security Office (SSF and workmen's compensation), and the Labour Protection Act (wages, overtime, and payslips), many companies outsource processing to a local expert or an Employer of Record. A specialist provider can register employees, run the monthly cycle, calculate and remit withholding tax and social security, and keep the business compliant as rates and thresholds change.
How can Glints help you?
You can streamline your company's payroll in Thailand by outsourcing to Glints, your expert PEO and EOR solution. With our payroll expertise across Southeast Asia, we ensure compliance with Thailand's Labour Protection Act, Revenue Code, and Social Security Act, and handle salary calculations, PIT withholding, and social security filings — delivering smooth and efficient payroll management for your business.
Book a schedule with our team to discover how we can manage payroll and tax for your team in Thailand.
Social Security Fund (SSF)