Thailand flag Thailand: Operating a Business in Thailand

Work conditions in Thailand

The Active Population in Figures

201820192020
Labour Force 38,908,33438,650,53338,483,357

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 74.13%74.71%74.17%
Men activity rate 81.95%82.58%81.84%
Women activity rate 66.64%67.18%66.81%

Source: International Labour Organization, ILOSTAT database

 
Employed Persons, by Occupation (% of Total Labour Force) 2014
Agriculture, forestry and fishing 35.2%
Manufacturing 16.5%
Wholesale and retail trade; repair of motor vehicles and motorcycles 15.9%
Accommodation and food service activities 6.6%
Construction 5.5%
Public administration and defence; compulsory social security 4.1%
Transportation and storage 3.0%
Education 2.9%
Human health and social work activities 1.8%
Financial and insurance activities 1.3%
Administrative and support service activities 1.3%
Professional, scientific and technical activities 0.8%
Information and communication 0.7%
Arts, entertainment and recreation 0.6%
Real estate activities 0.4%
Electricity, gas, steam and air conditioning supply 0.3%
Water supply; sewerage, waste management and remediation activities 0.3%
Mining and quarrying 0.2%
 
For Further Statistics
National Statistical Office
For Further Information About the Labour Market
ILO Thailand profile

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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.

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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%

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Social Partners

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.
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
Department of Employment
Ministry of Labour
Department of Labour Protection and Welfare

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Latest Update: September 2022

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