Work conditions in Thailand

The Active Population in Figures

Working Conditions

Legal Weekly Duration

48 hours or eight hours per day over six days, with a limit of 36 overtime hours per week.

Retirement Age

There is no legal age of retirement except for civil servants who can retire at 60.

Working Contracts

Employment contracts are regulated by Law. Individual negotiations and collective agreements complement it. The contract can be written or verbal and the employment contract can be for a fix period of time or a non-definite period of time.

Labour Laws

Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Cost of Labour

Minimum Wage

In January 2020, the new minimum wage law came into effect. The increase is applicable to unskilled workers and ranges from 313-336 Baht, depending on the province, representing an increase of five to six Baht from the previous daily wage range of 308-330 Baht.
For more information, please visit the ministry of labor website.

Average Wage

Average gross monthly wage: THB 14,419.08 as of December 2020 (source: Bank of Thailand, latest available data).

Social Contributions

Social Security Contributions Paid By Employers:

The Social Security Act is used to finance compensation to employees for maternity, death, unemployment, accidents, illnesses, and physical disabilities occurring outside the workplace. Employers (with one or more employees) and the government are each required to contribute 5% of the employee’s wage to the social security fund, subject in each case to a maximum contribution of THB 750 (5% of THB 15,000) per month.

• Disability, maternity and death benefits: 1.5%
• Child and old age benefits: 3%
• Unemployment benefits: 0.5%

Social Security Contributions Paid By Employees:

The Social Security Act is used to finance compensation to employees for maternity, death, unemployment, accidents, illnesses, and physical disabilities occurring outside the workplace. Employees pay contributions at 5%, subject to a maximum contribution of THB 750 (5% of THB 15,000) per month.

• Disability, maternity and death benefits: 1.5%
• Child and old age benefits: 3%
• Unemployment benefits: 0.5%

Social Partners

Employer Associations

FTI - Federation of Thai Industries
Thailca - Thai Listed Companies Association

Social Dialogue and Involvement of Social Partners

The Labour Relations Act allows private sector workers to form and join trade unions without prior authorisation, bargain collectively, and conduct legal strikes, and it prohibits antiunion discrimination. However, Labour law enforcement is inconsistent and, in some instances, ineffective in protecting workers. Employers sometimes use various techniques to stop workers’ strikes and weaken labour union collective bargaining efforts. No laws allow civil servants to form or register a union. The law forbids strikes and lockouts in the public sector, government-owned enterprises, and 'essential services'. Trade unions include the Confederation of Industrial Labour of Thailand (CILT), the Labour Congress of Thailand (LCT), the Thai Trade Union Congress (TTUC), the Confederation of Thai Electronic, Electrical Appliances, Auto and Metal Workers (TEAM), etc.

Labour Unions

Confederation of Industrial Labour of Thailand (CILT)

Unionisation Rate

According to ITUC-CSI, Thailand has the lowest unionisation rate in Southeast Asia, at 1.5%.

Labour Regulation Bodies

Ministry of Labour