Global Employment Updates 2023: Thailand

Employment Laws of Thailand 2023

An Overview

1. MINIMUM WAGE

As of 1 October 2022, Thailand has increased the daily minimum wage rates across all its provinces by an average of five percent. The last time the daily minimum wage increase was in 2020. The new wages are as under:

• Chonburi, Rayong, Phuket – 354 Baht
• Bangkok, Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon – 353 Baht
• Chachoengsao – 345 Baht
• Ayutthaya – 313 Baht
• Prachin Buri, Nong Khai, Ubon Rachathani, Phangna, Krabi, Trat, Khon Kaen, Chiang Mai, Suphan Buri, Songkhla, Surat Thani, Nakorn Ratchasima, Lopburi, Saraburi – 340 Baht
• Mukdahan, Kalasin, Sakhon Nakhon, Samut Songkhram, Chantaburi, Nakhon Nayok – 338 Baht
• Petchburi, Kanchanaburi, Bung Kan, Chai Nat, Nakhon – Phanom, Phayao, Surin, Yasothon, Roe Et, Loei, Phattahalung, Uttaradut, Nakhon Sawan, Phrachuap Kiri Kan, Phitsanulok, Ang Thong, Sa Kaeo, Buriram, Petchburi – 335 Baht
• Amnat Charoen, Mae Hong Son, Chiang Rai, Trang, Si Sa Ket, Nong Bua Lam Phu, Uthai Thani. Lamphang, Lamphun, Chumphon, Maha Asarakham, Singburi, Sathun, Phrae, Sukhothai, Kampaeng Phet, Ratchburi. Tak, Nakhon Sri Thammarat, Chaiyaphum, Ranong, Pichit – 332 Baht
• Yala, Pattani, Narathiwat, Nan, Udon Thani – 328 Baht

2. WORKING HOURS

The maximum number of daily working hours is eight, while the weekly number of working hours cannot exceed 48. For hazardous work, the regular workday cannot exceed seven hours and the regular workweek cannot exceed 42 hours. Any employee working at least five consecutive hours is entitled to a minimum break of one hour.

Overtime: An employee who works overtime on a regular workday is entitled to 1.5 times regular pay. For overtime on a holiday, the rate is three times regular pay. The total amount of overtime and holiday work must not exceed 36 hours per week.

Night Work: Regular employees are not restricted from working at night. It does, however, include limitations for women and minors. A pregnant employee cannot be forced to work between the hours of 10 PM and 6 AM by an employer. Also, an inspector will evaluate the nature of the work performed by female employees who work between the hours of 12 AM and 6 AM. Minors are not permitted to work between the hours of 10 PM and 6 AM, unless a special exemption has been granted by the Director-General.

3. PAID ANNUAL LEAVE

After one year of employment, an employee is entitled to take at least 6 days per year of paid annual leave. Unused vacation can be accumulated from year to year.

4. SICK PAY

Employees are allowed up to 30 days of paid sick leave in a year and additional sick leaves are unpaid. if the employee takes a sick leave for more than three days, the employer may require a doctor’s certificate.

5. PARENTAL LEAVE

Maternity Leave: During each pregnancy, women are allowed to take up to 98 days of leave (inclusive of holidays). The employer must provide full pay to the mother for up to 45 days of the leave. If an employee is insured under the Thai Social Security Fund, they must receive additional maternity benefits that is comparable to full salary for the remaining 45 days. To be eligible for the social security benefit, insured persons or their spouses must have made contributions into the system for at least seven of the 15 months preceding medical treatment for pregnancy.

Paternity Leave: There is no provision for mandatory paternity leave for private-sector employees. However, state employees or those working in the public sector are eligible for up to 15 days of paid leave within 30 days after the child’s birth.

6. SEVERANCE PAY

Employment in Thailand can be terminated without a specific cause, the employer is required to pay severance to an employee whose employment is terminated without cause at the following rates:

• If the length of employment period is between 120 days and 1 year, then the severance payment is 30 days of wage.
• If the length of employment period is between 1 and 3 years, then the severance payment is 90 days of wage.
• If the length of employment period is between 3 and 6 years, then the severance payment is 180 days of wage.
• If the length of employment period is between 6 and 10 years, then the severance payment is 240 days of wage.
• If the length of employment period is between 10 and 20 years, then the severance payment is 300 days of wage.
• If the length of employment period is between 20 years and more, then the severance payment is 400 days of wage.

7. WORK FROM HOME

To facilitate remote working arrangements and bring benefits to employers by reducing costs and promoting employee, the Thai Parliament approved an amendment to the Labour Protection Act B.E. 2541 (1998) (“Amended Act”) and the Labour Protection Act (No. 8) B.E. 2566 (2023) (the amended LPA) has been enacted and recently published in the Royal Gazette on 19 March 2023.

The legislation adds a single section to the LPA providing that an employer and an employee “may agree in the employment contract” that the employee is allowed to work remotely, outside the employer’s place of business or outside the employer’s office.

The provision further provides that employers are responsible for ensuring that remote work agreements are in writing, either physically or electronically, and may include the following details:

• Period of the agreement.
• Normal working hours, rest periods, and overtime work.
• Criteria for overtime work, holiday work, and various types of leave.
• Scope of work and control or supervision by the employer; and
• Responsibility for arranging supplies and equipment, including necessary costs relating to the work.

The amended LPA gives employees who work from home the right to refuse contact from the employer or the supervisor beyond working hours. In addition, employers must treat remote employees equally to on-premises employees.

8. CONTRIBUTIONS FOR SOCIAL INSURANCE

All employees are required to contribute to a social security fund an amount equal to 5% of their salary. Employers and the government are also required to contribute an equal amount.