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Severance pay in Thailand: what do I need to know before I hire?

If you end someone’s employment after 120 days of service, you owe severance on a fixed legal scale: from 30 days of their latest wage, up to 400 days after twenty years. A fixed-term contract does not avoid it except for genuine one-off project, occasional or seasonal work that ends within two years, and retiring someone counts as ending their employment too.

Last reviewed 26 October 2026

Continuous serviceMinimum severance
Under 120 daysNone
120 days to under 1 year30 days of the latest wage
1 year to under 3 years90 days
3 years to under 6 years180 days
6 years to under 10 years240 days
10 years to under 20 years300 days
20 years or more400 days

These are minimums: a contract can give more, never less. For someone on a monthly salary, 30 days is a month’s pay, so three years of service means at least six months’ salary on the way out. The 400 day tier was added in May 2019.

When it is not owed

Those grounds are read narrowly, and there is a procedural trap: if the termination notice does not state the reason, the employer cannot rely on it later. A dismissal letter that says nothing more than “your services are no longer required” has given away the defence before anyone reaches a labour court.

Notice is a separate payment

For an open-ended contract, notice is given in writing on or before a pay day and takes effect on the next one, so usually one pay period, and never more than three months. You may instead pay wages for the notice period and end employment immediately; that payment is due on the day of dismissal. Notice pay comes on top of severance, not instead of it, and final wages are due within three days of the end of employment.

Fixed-term contracts, probation and retirement

Letting a fixed-term contract expire does not avoid severance unless the work is a specific project outside your normal business, occasional work, or seasonal work, it is due to finish within two years, and that was agreed in writing at the start. A one-year contract renewed every year for ordinary work is, for severance purposes, ordinary employment.

Probation has no special status in the severance rules. What protects the employer is the 120 day threshold, which is why Thai probation periods are so often set at 119 days. Retirement counts as termination too: an employee who reaches 60, or the retirement age you set, is owed severance on the same scale. And if you move the workplace and an employee refuses to follow, they can claim special severance at the same rates.

The practical conclusion is to get the contract right before the first day rather than after the first problem. A firm can draft one as part of employment law work; payroll providers will calculate the final payment when someone leaves, and what payroll costs shows what that service runs to.

Every filing, and when it is due. A Thai company owes about a dozen of them a year. They are all on the Thailand tax & compliance calendar, monthly and annual, paper and e-filing dates side by side.

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This is general information about how a filing works, not accounting or tax advice for your company. Confirm anything that matters against the official notice or with your accountant. Spotted something out of date? Tell us and we will fix it.

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