The major legislation governing labor protection law in Thailand is the Labor Protection Act (the “LPA”). The LPA prescribes labor protection standards applicable to both employers and employees working in Thailand. However, it does not apply to government and state enterprise employees.
Wages must be paid only in money and must not be less than the minimum wage rate. With regard to pay, employees fall into two categories:
- Salaried employees, who already receive wages on holidays (weekly holidays, official holidays, and annual leave) even when they do not actually work on those days — for example, employees who receive a monthly salary. By virtue of being salaried, these employees are already paid “holiday wages” at a rate of not less than one times their average hourly wage rate on a normal working day.
- Non-salaried employees, who are not entitled to wages on holidays if they do not work on those days — for example, employees whose wages are calculated on a daily or hourly basis. These employees must be paid “holiday wages” if they work on a holiday, at a rate of not less than two times their normal non-holiday wage.
When an employee works more than eight hours in a day, they must be paid overtime for hours beyond that at a rate of not less than one and a half times their normal average hourly wage rate. On holidays, overtime wages must be paid at a rate of not less than three times their normal average hourly wage rate.
Note: an employer who violates or fails to comply with the LPA may be punished, depending on the severity of the offense, with a fine of THB 5,000 to THB 200,000, imprisonment of up to one year, or both.