1. Understanding Gross Salary and Allowances
In Thailand, the gross salary refers to the total monthly compensation earned by an employee before any deductions, which includes both the base salary and any allowances.
| Component | Description | Amount (THB) | Amount (USD) |
|---|---|---|---|
| Monthly Gross Income | Total monthly compensation before any deductions | 100,000 | 2,896.87 |
| Monthly Allowance | Additional payments for specific needs (e.g., housing, transport) | 1,000 | 28.97 |
| Total Gross Salary | Total of base salary and allowances | 101,000 | 2,925.83 |
2. Employer Contributions (Burden on Employer)
In Thailand, employers are required to make mandatory contributions for social security and other statutory obligations. These contributions are calculated based on the total income of the employee.
| Contribution Type | Employer’s Rate | Amount (THB) | Amount (USD) | Details / Logic Behind the Burden |
|---|---|---|---|---|
| Social Fund | 0.5% of the Recurring Income | 505 | 14.63 | Contribution for general social security coverage. |
| Social Security Fund (SSF) | 5% of Total Income | 750 | 21.73 | Contributions capped at 15,000 THB. |
3. Total Employer Contribution Cost
The total employer contribution includes all mandatory social security and contingency payments, as well as specific contributions for the social fund and SSF.
| Total Employer Contribution Cost | Amount (THB) | Amount (USD) | Percentage of Gross Salary |
|---|---|---|---|
| Total Employer Contribution Cost | 1,255 | 36.36 | 1.24% |
4. How the Employer’s Burden is Calculated
For an employee earning 100,000 THB monthly (gross salary including allowance), the employer’s contributions are calculated as follows:
| Contribution Type | Employer Contribution (THB) | Calculation Explanation | Cap Amount (THB) |
|---|---|---|---|
| Social Fund | 505 | 0.5% of recurring income (100,000 × 0.5%) | N/A |
| Social Security Fund (SSF) | 750 | 5% of total income (100,000 × 5%) | Capped at 15,000 |
Total Employer Contribution Cost: 1,255 THB (36.36 USD)
5. Income Tax and Salary Payments
Thailand follows a progressive tax system, and employees pay taxes based on their income level. The income tax deductions vary depending on total income and any applicable exemptions.
Income Tax Calculation Example
For an employee earning 101,000 THB monthly (1,212,000 THB annually):
| Taxable Income (THB) | Tax Rate | Tax Payable (THB) |
|---|---|---|
| 0 – 150,000 | 0% | 0 |
| 150,001 – 300,000 | 5% | 7,500 |
| 300,001 – 500,000 | 10% | 20,000 |
| 500,001 – 1,000,000 | 15% | 60,000 |
| Above 1,000,000 | 20% | 20,000 |
Total Tax Payable: 87,500 THB (2,530 USD)
6. Working Hours and Pay Schedule
| Category | Details |
|---|---|
| Standard Working Hours | 40 hours per week (8 hours per day) |
| Overtime | Paid at 1.5x the standard hourly rate |
| Pay Schedule | Salaries are paid monthly, typically by the 7th of the following month |
7. How GlobainePEO Eases Payroll Management in Thailand
By partnering with GlobainePEO, businesses can streamline payroll management in Thailand, ensuring compliance with local laws and minimizing risks.
- Compliance Assurance: Ensure full adherence to Thailand’s tax and contribution regulations.
- Simplified Payroll Processing: Efficiently manage contributions, deductions, and compliance with Thailand’s progressive tax system.
- Local Expertise: Leverage GlobainePEO’s deep knowledge of Thailand’s payroll system and local employment laws.
- Cost Efficiency: Minimize the administrative burden while ensuring full regulatory compliance.
- Employee Benefits: Simplify management of employee contributions and benefits, such as social security.
8. Summary Table: Payroll Breakdown in Thailand (THB)
| Category | Amount (THB) | Percentage of Gross Salary | Details / Logic Behind the Burden |
|---|---|---|---|
| Monthly Gross Income | 100,000 | 98.04% | Total salary before deductions or allowances. |
| Monthly Allowance | 1,000 | 0.99% | Additional payments for specific needs (housing, transport, etc.). |
| Social Fund | 505 | 0.50% | Contribution for general social security coverage. |
| Social Security Fund (SSF) | 750 | 0.74% | 5% of total income, capped at 15,000 THB. |
| Total Employer Contribution Cost | 1,255 | 1.24% | Total contributions (SSF, Social Fund). |
| Overall Cost (Gross + Employer Contributions) | 102,255 | 100% | Total cost of employment, including salary, allowances, and employer contributions. |
How GlobainePEO Can Help with Payroll in Thailand🌐
Globaine Payroll is committed to simplifying global payroll management with zero errors. Our advanced platform leverages powerful payroll calculator software to streamline processing for workforces in over 150 countries, ensuring accuracy, compliance, and efficiency at every step.