Thailand Compensation & Benefits
One of the most common ways companies are found noncompliant is by offering incorrect compensation and benefits that do not meet Thailand’s compensation laws. Further, compensation and benefits are often sticking points for employees and can become particularly troublesome in the event of a termination.
Globalization Partners takes the stress out of Thailand benefit management. We’ll handle your employees’ payment through a competitive compensation plan. Then we will source the best benefits for your company to set your business apart from other employers in Thailand and attract top talent to your company.
Thailand Compensation Laws
Thailand does not have one universal minimum wage law. Instead, the minimum wage varies based on your province. The country raised its minimum wages by between 5 Thai baht (THB) and 22 THB across the provinces in 2018. In the most industrialized provinces — Chonburi and Rayong — the minimum wage was increased by seven percent.
According to Thailand compensation laws, overtime is paid at one and a half times the employee’s base salary on weekdays and three times the base salary on weekends. If an employee is not eligible for overtime — such as a company officer — they should get two times their salary for overtime pay.
Deciding on the best Thailand benefit management plan for your company starts with determining the statutory minimums you need to meet.
Thailand has 13 paid public holidays, which grant employees 15 days off per year. Workers also receive a minimum of six days of paid vacation time, but many employers offer 10 to 15. Employees in Thailand are also entitled to a variety of different leaves, including:
- National service leave
- Training/exam leave
- Sterilization leave
- Monkhood leave
- Hujj leave
- Compassionate leave
- Marriage leave
- Hospitalization leave
Thailand Benefit Management
You should also prepare to offer supplemental benefits that employees in Thailand may expect from a new position. Although the country has a universal healthcare system, employers will sometimes provide supplemental coverage as a benefit. Many executives and expats ask for additional health and life insurance. Small companies may choose to offer a stipend for these benefits instead of sourcing them.
Although not mandatory benefit, employers often offer a provident fund that promotes retirement savings. Employer contributions to these funds must be greater or equal to the employee contribution. As an employer, you can offer this benefit under several conditions such as working period, membership, job title, and salary rate.
Restrictions for Benefits and Compensation
Most restrictions for benefits and compensation come from agreements outside of an employment contract. Although trade unions and collective bargaining agreements (CBAs) are not as prevalent in Thailand as in other countries, you should still check to make sure you are meeting the statutory minimums.
Work With Globalization Partners
Globalization Partners offers Thailand benefit and compensation outsourcing services for companies that do not have the time or resources to source those benefits themselves. Contact us today to learn more about how we can make your expansion as easy as possible.