Payroll and compliance in Thailand looks simple on paper: two main filings every month, one annual summary, and a labour act that rarely changes. In practice, 2026 broke that assumption. The Social Security wage ceiling rose for the first time in three decades, maternity leave grew from 98 to 120 days, and many of the guides still ranking for this topic quote the old numbers.
This guide covers payroll and compliance in Thailand as it stands in 2026: who you register with, what you deduct and when you file, how income tax is withheld, which labour rules reach the payslip, and the mistakes that catch employers out.
Thailand payroll at a glance
Thailand payroll runs monthly and involves two agencies on two different deadlines.
| Obligation | Rule in 2026 | Paid or filed to | Deadline |
| Social Security Fund | 5% employee and 5% employer on wages from THB 1,650 up to THB 17,500, a maximum of THB 875 each | Social Security Office | By the 15th of the following month |
| Income tax withholding | Progressive, 0% to 35%, withheld monthly from salary | Revenue Department | PND.1 by the 7th on paper or the 15th by e-filing |
| Annual summary | Employer’s summary of the year’s withholding, PND.1 Kor | Revenue Department | By the end of February |
| Provident fund | Voluntary, shares set by the plan | The fund manager | Per the plan |
Employers also pay Workmen’s Compensation contributions, roughly 0.2% to 1% of wages depending on the industry’s risk class. The most common slip in Thailand payroll is treating Social Security and income tax as one filing on one date. They are two filings, to two agencies, on two schedules.
What changed recently
The recent changes are worth listing before the detail.
- July 2025: Bangkok moved into the top minimum-wage tier of THB 400 a day.
- 7 December 2025: the Labour Protection Act amendment took effect, with 120 days of maternity leave and 15 days of paid spousal leave.
- 1 January 2026: the Social Security wage ceiling rose to THB 17,500, with further steps in 2029 and 2032.
- 2024 to 2026: a higher deduction for Thailand ESG fund investments, up to THB 300,000 and no more than 30% of assessable income, runs only until the end of 2026.
Who you register with
Getting set up starts with three registrations and one agency that governs the rules.
- Revenue Department: The withholding tax account that PND.1 is filed under.
- Social Security Office: Employers with at least one employee must register, and employees must be enrolled, foreign employees included.
- Department of Business Development: Company registration, which comes before hiring.
- Department of Labour Protection and Welfare: The agency that administers the Labour Protection Act and handles complaints and inspections.
Thailand social security in 2026: the ceiling change
Thailand social security contributions are 5% from the employee and 5% from the employer under the Social Security Act, and they fund healthcare, maternity, invalidity, old-age pension, and unemployment benefits. Contribution wages are floored at THB 1,650, so the smallest contribution is THB 82.50 a month. What changed is the cap. A ministerial regulation published in the Royal Gazette on 12 December 2025 lifted the wage ceiling from THB 15,000, where it had sat since 1995, to THB 17,500 from 1 January 2026, in three phases.
- 2026 to 2028: Wage ceiling of THB 17,500, maximum contribution of THB 875 each.
- 2029 to 2031: Wage ceiling of THB 20,000, maximum contribution of THB 1,000 each.
- From 2032: Wage ceiling of THB 23,000, maximum contribution of THB 1,150 each.
The Thailand social security change is a payroll configuration issue before it is a policy one. The practical effect is simple. An employee on THB 30,000 a month now pays THB 875, up from THB 750, and the employer matches it. An employee on THB 12,000 still pays THB 600, because their wage sits under the ceiling. Anyone earning above THB 15,000 will see take-home pay fall by up to THB 125 a month, so explain the change on the payslip. The THB 17,500 figure caps contribution wages. It is not a minimum wage.
Thailand income tax: withholding, bands, and a worked example
Withholding is the most calculation-heavy part of the monthly run. Thailand income tax on salary is withheld monthly by the employer. The employer projects the employee’s annual income, applies the allowances below, works out the year’s tax from eight bands, and withholds a twelfth each month.
| Net annual income (THB) | Rate |
| 0 to 150,000 | Exempt |
| 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 5,000,000 | 30% |
| Over 5,000,000 | 35% |
Common reliefs before the bands apply:
- Employment-expense deduction: 50% of income, capped at THB 100,000.
- Personal allowance: THB 60,000, plus THB 60,000 for a spouse with no income.
- Children and parents: THB 30,000 per child and THB 30,000 per parent aged 60 or over, with a higher allowance for a second or later child born from 2018.
- Social security and provident fund: Employee contributions are deductible within limits.
- Thailand ESG fund: Investments made from 2024 to 2026 qualify for up to THB 300,000, within 30% of assessable income.
Watch it work for a single employee earning THB 45,000 a month, with no other allowances. Annual salary is THB 540,000. Subtract the THB 100,000 expense deduction, the THB 60,000 personal allowance, and THB 10,500 of Social Security contributions, and net income is THB 369,500. The first THB 150,000 is exempt, the next THB 150,000 is taxed at 5% (THB 7,500), and the remaining THB 69,500 is taxed at 10% (THB 6,950). Annual tax is THB 14,450, so THB 1,204 is withheld each month. A bonus or raise changes the projected income, so the withholding must be recalculated in that month.
Labour rules that reach the payslip
Payroll in Thailand also reaches into labour law, because several rules change what a payslip must contain.
- Minimum wage: A provincial daily grid, currently from THB 337 to THB 400, with Bangkok in the top tier since July 2025.
- Hours and overtime: A maximum of 8 hours a day and 48 hours a week, overtime at 1.5 times on a working day, and 3 times for overtime on a holiday.
- Leave: At least 13 public holidays, a minimum of 6 days of annual leave after a year of service, and up to 30 paid sick days.
- Maternity and family leave: Since 7 December 2025, 120 days of maternity leave with 60 paid by the employer, 15 days of paid spousal leave, and up to 15 days of infant care leave where the newborn has a medical condition. Earlier guides say 98 days with 45 paid.
- Severance: Scaled by service, reaching 400 days of wages at 20 years or more.
Read more: The ultimate guide to setting up global payroll software
Foreign employees and tax residence
Foreign employees fall under the same payroll rules as Thai nationals, and the employer registers them with the Social Security Office. Tax residence matters here: it turns on whether someone spends 180 days or more in the country in a calendar year. Work permit and visa rules sit outside payroll, but they decide whether an employee can be paid at all.
A monthly Thailand payroll run in six steps
The monthly run fits a repeatable sequence.
- Close attendance: Lock hours, overtime, and leave for the month.
- Calculate gross pay: Include overtime at the statutory multiples and any bonus or allowance.
- Deduct Social Security: 5% of contribution wages, capped at THB 17,500.
- Withhold income tax: From projected annual income, after allowances.
- Pay net salary: on the agreed pay date, with a payslip showing earnings and deductions.
- File and keep records: PND.1 by the 7th or 15th, the Social Security remittance by the 15th, and the supporting records.
Also read: The year-end HR and payroll compliance checklist
Six mistakes that catch employers out
Most errors come from stale numbers or merged deadlines.
- Using the old Thailand social security ceiling: THB 15,000 and THB 750 are stale from January 2026.
- Merging two filings into one date: the Revenue Department and the Social Security Office have different deadlines.
- Leaving maternity leave at 98 days and 45 paid: the amended act changed both numbers.
- Skipping the recalculation after a bonus or raise: Thailand income tax withholding is based on projected annual income.
- Applying one minimum wage across provinces: a multi-site business has more than one rate.
- Missing the annual PND. 1 Kor summary: it is due at the end of February.
Explore: A step-by-step payroll audit checklist
Conclusion
Payroll and compliance in Thailand rewards employers who treat it as a calendar: Social Security by the 15th, withholding by the 7th or 15th, the annual summary by the end of February, and a short list of rules that changed in the last year. The two that changed most are the Social Security ceiling and maternity leave, and both are easy to miss if your sources are a year old.
Akrivia HCM’s native Thailand payroll engine calculates Social Security contributions and progressive income tax, and generates the monthly withholding and Social Security reports for e-filing, built to apply changes in rates, wage ceilings, and tax bands.
FAQs
Is the THB 17,500 figure a minimum wage?
No. It is the maximum monthly wage used to calculate Social Security contributions, while the minimum wage is a separate provincial daily rate of THB 337 to THB 400.
Does Thailand require a 13th month bonus?
No. Thailand has no statutory 13th month pay, though many employers pay a customary year-end bonus, which is taxable income and counts toward Social Security wages up to the ceiling.
Is a provident fund compulsory in Thailand?
No. Provident funds are voluntary, but where an employer offers one, contributions must be remitted within three working days of paying salary, and employee contributions are tax deductible within limits.
