Employer of record (EOR) in Thailand: Your guide for 2025

Thailand has long attracted global employers with its skilled workforce, competitive wages, and solid infrastructure. Its growing tech and startup ecosystem—especially in the capital city of Bangkok—makes it a prime destination for companies looking to hire employees and expand remote or hybrid teams in Southeast Asia.

But Thai labor laws are detailed and employee-first. Without a local legal entity, hiring full-time employees means navigating strict regulations around contracts, benefits, and compliance.

That’s why many companies turn to an employer of record in Thailand—offloading the legal and admin work to simplify hiring and scale faster.

EORs in Thailand: How they work

An employer of record (EOR) is a third-party service that legally employs workers in another country on your behalf. While the EOR manages local labor laws, employment contracts, payroll, and HR compliance, your company directs the employee’s day-to-day work, goals, and performance.

Partnering with an EOR lets you hire full-time employees in Thailand without building a local presence from scratch. It’s a faster way to grow your global team without all the overhead or red tape.

Here’s how the EOR process works in Thailand:

1. Choose a provider with a legal presence in Thailand

Start with an employer of record that has a strong track record of helping companies hire in Thailand. A provider with deep local expertise can offer faster onboarding, clearer guidance, and a smoother experience for both you and your new hire.

2. Define the role, compensation, and benefits

Share the role details, salary, benefits, work location, and start date. The EOR uses this information to draft compliant employment contracts and build an onboarding plan aligned with Thai workplace customs.

3. Draft and manage employment agreements

The EOR prepares employment agreements that follow your terms and meet Thai labor regulations. They guide contract discussions, confirm employee understanding, and include requirements around paid leave, notice periods, and other statutory benefits.

4. Onboard employees and manage payroll

After your new hire signs their employment contract, the EOR takes care of all local registrations, including Thai social security. They process monthly payroll in Thai baht, calculate income tax, manage required employer contributions, and issue payslips in the correct format.

5. Manage work permits and visas

Hiring non-Thai nationals? Your EOR manages the entire work permit and visa process, making sure that all immigration documentation complies with Thai law and avoids unnecessary delays.

6. Maintain compliance with Thai employment law

Thai employment laws frequently change. A good EOR keeps up with regulatory updates—adjusting contracts, benefits, and HR policies to maintain full compliance across tax, employee classification, and termination procedures.

6 benefits of using an EOR in Thailand

When you hire employees in Thailand without local HR knowledge, it’s easy to run into legal and operational roadblocks. But by partnering with an employer of record, you can avoid costly mistakes and move faster. An EOR provides local infrastructure and support without the burden of setting up a legal entity—so you can focus on growing your global team.

Here are six key benefits of working with an EOR in Thailand:

1. Fast market entry: Establishing a business in Thailand can take months and requires significant investment. An EOR lets you hire full-time employees right away without the delays or legal complexity of entity registration.
2. Compliance with Thai labor laws: Thailand’s employment laws are complex and strictly enforced. From employment contracts and working hours to severance pay and termination rules, your EOR ensures full compliance with Thai labor regulations—protecting your company from risk.
3. Less admin work for your team: Your EOR manages payroll, income tax withholdings, social security contributions, and leave tracking. That means fewer operational headaches and more time for your internal HR team to focus on strategy and people.
4. Localized benefits that attract top talent: An EOR helps you offer compensation and benefits that meet local expectations. That includes annual leave, public holidays, maternity and paternity coverage, and more. Even as a global company, your package will feel relevant in the Thai market.
5. Help with onboarding and permits: If you’re hiring non-Thai nationals, your EOR will handle the full work permit and visa application process. That means your new hires are ready to work from day one and fully compliant with Thai immigration law.
6. Protection for your business as you scale: Expanding into new markets often involves sensitive IP and employee data. A trusted EOR helps you meet data protection laws in Thailand and keeps your operations secure as you scale across borders.

Payroll and benefits in Thailand: What to know

Hiring employees in Thailand comes with new payroll responsibilities, tax requirements, and employee entitlements. Thai labor laws and employment regulations often differ from global norms, especially in how income tax, employer contributions, and payroll processing are handled. Partnering with an employer of record in Thailand ensures that every part of your payroll process is compliant, accurate, and aligned with local laws.

Payroll and tax responsibilities

• Monthly payroll processing: Most full-time employees in Thailand are paid monthly in Thai baht through approved local bank accounts. An EOR manages end-to-end payroll services, including salary calculations, payslip issuance, and compliance with Thai labor laws around timing, format, and reporting.
• Income tax withholdings: Thailand uses a progressive income tax system based on monthly earnings. Your EOR calculates tax liabilities, deducts the correct amount from employee salaries, and submits payments directly to Thai tax authorities—ensuring all filings meet current regulations.
• Employer contributions: Thai labor law requires monthly contributions to two key programs: the Social Security Fund, which covers healthcare and pensions, and the Workmen’s Compensation Fund (WCF), which supports employees injured on the job. Your EOR calculates, files, and submits these payments on your behalf.
• Currency conversion and salary delivery: If your company operates in a different currency, your EOR will handle currency conversion and transfer funds to employees in Thai baht using approved local payroll channels.

Leave and benefits

• Paid leave entitlements: Thai employment law grants employees at least six days of paid annual leave after one year of service. Workers are also eligible for sick leave, maternity and paternity leave, and personal business leave. Thailand observes 19 public holidays each year, all of which must be honored. Your employer of record tracks leave balances, manages accruals, and keeps your time-off policies compliant with Thai labor laws.
• Provident Fund support: Though optional, the Provident Fund is a popular retirement savings program in Thailand. Employees contribute 2% to 15% of their salary, often matched by the employer. Your EOR helps you evaluate whether to offer this benefit and manages setup, enrollment, and ongoing contributions.
• Locally relevant perks: Thai employees often expect additional perks such as commuter stipends, paid holidays beyond statutory minimums, and optional health insurance. Your EOR helps you tailor a benefits package that meets local expectations while staying aligned with your global HR policies.

Seamlessly hire talent in Thailand with Oyster

Hiring employees in Thailand comes with plenty of moving parts—labor laws, payroll regulations, and local employment practices. Oyster handles every detail. As your EOR in Thailand, we manage compliant employment contracts, monthly payroll, benefits, and tax contributions, eliminating the need for a local legal entity.

Whether you’re onboarding your first full-time employee in Southeast Asia or expanding a global team across borders, Oyster brings the local expertise and HR support to help you hire with confidence.

Book a demo to see how Oyster can strengthen your global expansion strategy with seamless hiring in Thailand and beyond.

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.