Staff Outsourcing & PEO Services in Bangkok, Thailand

Employer of Record (EOR) — we are the legal employer. Used when you have no Thai entity. Most of what companies want when they say “PEO” in Thailand is this.

PEO — strictly, a co-employment arrangement where you have your own entity and share employer responsibilities. In Thailand the term is used loosely and usually means EOR.

Staff outsourcing — we supply and employ staff for a defined function or project. The relationship is about the function delivered rather than named individuals you have chosen.

If you are unsure, the question that settles it is whether you have a registered Thai company. If not, you need an EOR.

Section 11/1 of the Labour Protection Act treats a company that uses outsourced workers as a joint employer alongside the outsourcing company. Where an outsourced worker does the same job as one of your direct employees, you must provide fair benefits and welfare without discrimination between the two.

“Benefits and welfare” is interpreted broadly by the Department of Labour Protection and Welfare — wages, overtime, shift payments, allowances, bonuses, transport, uniforms, accommodation and tenure-based entitlements. Non-compliance carries a fine of up to THB 100,000.

Companies get caught out when they treat an EOR as a way to employ people more cheaply than they otherwise could. It is not, and treating it that way creates a liability that sits with you, not with your provider. We would rather have that conversation before you sign than after.

What setting up your own entity requires

A Thai limited company that wants to sponsor work permits for foreign staff needs THB 2 million registered capital per foreign employee — THB 8 million for four — and four Thai employees per foreign employee. It also needs social security registration, with three months of contributions made for Thai staff before a work permit application, plus ongoing accounting, audit, tax filing and company secretarial obligations. These requirements halve for a foreign employee married to a Thai national: THB 1 million and two Thai staff.

Realistically that is several months and meaningful fixed cost before your first hire starts.

When an EOR makes more sense

You are testing the Thai market and do not yet know if it justifies an entity. You need someone working in weeks, not months. You have one to five people in Thailand and no plans for an office. You are hiring a specific person you have already identified and do not want to lose them to a six-month setup. Or you have a fixed-term project and do not want a permanent structure.

When your own entity makes more sense

You are committed to Thailand long term with a growing team. You need to invoice Thai customers locally or hold local contracts and licences. Your headcount makes per-employee EOR fees more expensive than fixed entity costs. You need operational control an EOR cannot give you — company vehicles, premises leases, local banking in your own name. Or your business requires a Foreign Business Licence or sits in a regulated sector.

We do this arithmetic with clients regularly, and we say so when the entity is the better answer.

Sponsoring through our entity means the registered capital and Thai-employee ratio sit with us rather than with you. We handle the Non-B visa application, the work permit, renewals and 90-day reporting.

Two things to know. The role has to be one a foreigner may legally hold — Thailand restricts certain occupations to Thai nationals, so tell us the role before you make an offer. And the salary on the work permit must match payroll — Immigration and the Labour Department compare them, and inconsistency surfaces at renewal.

EOR pricing in Thailand is normally a monthly fee per employee, either a flat amount or a percentage of salary, on top of gross salary and statutory employer contributions.

Expect to see quoted separately: the management fee per employee per month; employer social security, which is 5% of wages capped at THB 17,500 per month from January 2026, a maximum of THB 875; the Workmen’s Compensation Fund contribution; work permit and visa costs at cost plus handling; and any deposit against severance liability.

Ask every provider whether severance liability is included or held separately. Thai severance rises with length of service and can be substantial. A quote that ignores this is not a complete quote.

Most companies that use an EOR in Thailand eventually incorporate. When you are ready, we transfer employment to your new entity: continuity of service preserved, accrued entitlements carried across, social security records transferred, and work permits re-sponsored under your company. We do not lock clients into arrangements they have outgrown.

Do we need a Thai company to use an EOR?
No — that is the point of it. We are the legal employer.

Who manages the employee day to day?
You do. We hold the employment relationship and its legal obligations.

Can we hire foreign nationals?
Yes, subject to the role being one a foreigner may legally hold. We sponsor the work permit and visa.

What happens if we need to terminate someone?
We handle it to Thai legal requirements, including notice and statutory severance. Tell us early — the cost differs materially at four months versus four years.

Is an EOR arrangement legal in Thailand?
Yes. The obligation to be aware of is Section 11/1, above.

What is the minimum number of employees?
We work with single placements. There is no minimum.

Who holds the IP our employee creates?
You do, assigned through the employment contract and service agreement.

We already have a Thai entity — what do we need?
Then you need payroll outsourcing rather than an EOR.

For help comparing vendors, see our guide on how to compare staff outsourcing providers in Thailand.