Payroll in Thailand 2026: PIT withholding, social security, wages

In Thailand the employer withholds personal income tax every month by estimating the employee's tax for the year and spreading it over the payments, and deducts 5% of wages for the Social Security Fund, at most THB 875 a month in 2026. The employer pays the same 5% on top of salary, plus a Workmen's Compensation Fund premium.

Payroll in Thailand at a glance

Social security and workmen's compensation

Employees aged 15 to 60 are insured persons under section 33 of the Social Security Act, and stay insured if they keep working for an employer covered by the Act after 60. The government, the employer and the employee all contribute.

The wage ceiling rose on 1 January 2026. A Ministerial Regulation signed on 11 December 2025 raised the maximum wage used to calculate contributions from THB 15,000 to THB 17,500 for 2026 to 2028, then to THB 20,000 for 2029 to 2031 and THB 23,000 from 2032. The minimum stays at THB 1,650. The maximum monthly contribution is therefore THB 875 on each side in 2026, up from THB 750.

Contributions are calculated per employer, and a fraction of 50 satang or more is rounded up to one baht. The employer deducts the employee's share every time wages are paid and remits both shares by the 15th of the following month, with the contribution form. Late payment costs a surcharge of 2% a month on the unpaid amount.

The Workmen's Compensation Fund covers work injuries and is paid by the employer alone, at a rate that depends on the type of business.

Personal income tax on salaries

Thailand taxes the calendar year. For employment income, the taxable amount is the year's salary minus the expense deduction and the allowances:

• Expense deduction: 50% of salary and other employment income, capped at THB 100,000 a year.
• Personal allowance: THB 60,000.
• Spouse without income: THB 60,000.
• Children: THB 30,000 each; THB 60,000 for the second and later children born from 2018.
• Parents aged 60 or over with low income: THB 30,000 each.
• Social security contributions: the amount actually paid. The Revenue Department's allowance list for the 2024 tax year capped this at THB 9,000, the old maximum of 12 × THB 750; check the list for 2026, when the employee can pay up to THB 10,500.

Other allowances, such as life and health insurance premiums and provident fund contributions, can also be deducted.

Monthly withholding. Under section 50(1) of the Revenue Code the employer multiplies the pay by the number of payments in the year, deducts the expense deduction and the allowances the employee is entitled to, calculates the tax for the year with the rates above and divides it by the number of payments. Recalculate when pay changes during the year. The employee settles the final tax in their own annual return.

Minimum wage and the working day

Thailand's minimum wage is a daily rate set by the Wage Committee by province, and for some sectors. Notification No. 14, in force since 1 July 2025, is the latest; no new general minimum wage notification for 2026 had been issued when this guide was written.

A day means the employee's normal working hours, at most 8 hours (7 hours for work that may be hazardous), even if the employer schedules fewer hours. Employers may not pay less than the daily rate. The Labour Protection Act also governs overtime, holiday pay and severance on dismissal; check the current rules with the Department of Labour Protection and Welfare.

Monthly payroll calendar and filings

1. 1Every pay day: deduct social security and the income tax calculated under section 50(1).
2. 2Within seven days: remit the tax withheld and file the PND 1 return listing the tax withheld for each employee (sections 52 and 59 of the Revenue Code).
3. 3By the 15th of the following month: pay social security contributions for both sides with the contribution form.
4. 4When you hire your first insured employee: register as an employer and register the employee with the Social Security Office within 30 days of them becoming insured persons.
5. 5For the annual return: give each employee the withholding certificate under section 50 bis (50 Tawi), which they need to file their return by 31 March, or 8 April online.

Worked example: THB 30,000 a month

A single employee with no other allowances earns THB 30,000 a month for the whole of 2026.

The annual tax: salary of THB 360,000 minus the expense deduction of THB 100,000 (50% would be THB 180,000, capped), the personal allowance of THB 60,000 and social security contributions of THB 10,500 leaves net income of THB 189,500. The first THB 150,000 is exempt and the remaining THB 39,500 is taxed at 5%: THB 1,975 for the year. If only THB 9,000 of contributions were deductible, the tax would be THB 2,050.

Common mistakes

1. 1Keeping the THB 750 cap. From January 2026 contributions are calculated on wages up to THB 17,500, so the maximum is THB 875 on each side.
2. 2Using the 2025 minimum wage map. Bangkok moved to THB 400 on 1 July 2025, and hotels and service establishments pay at least THB 400 nationwide.
3. 3Forgetting the expense cap. The 50% expense deduction stops at THB 100,000 a year.
4. 4Not recalculating withholding after a pay rise or a new allowance claim.
5. 5Missing the 15th for social security, which costs 2% a month.
6. 6Registering employees late; the Act gives 30 days.

How Clientlly helps

Clientlly does not ship a built-in payroll profile for Thailand. An administrator enters the rates once in the payroll tax settings: the income-tax bands, the personal allowance, the employee and employer contribution rates with the THB 17,500 ceiling and the minimum wage. Clientlly then calculates gross to net and the employer contributions and produces payslips. Thailand's expense deduction is a percentage with a cap, so check the withholding on the first payslip of the year against the section 50(1) calculation above.

Around payroll, Clientlly handles leave requests and approvals with a shared leave calendar, attendance and overtime tracking with attendance and time tracking, and HR documents for each employee. See all human resources features, or compare plans on the pricing page.