RemotePad Logo

What is an Employer of Record

How to hire globally with an EOR

What is a Global PEO

An alternative to EOR

What is a PEO

Hire locally with a PEO

Our Methodology

Why you can trust our guides

Hire Globally

Find international talents

Outsource Recruitment

How to outsource recruitment

Work Visas

How to get a work visa

Digital Nomad Visas

Get a digital nomad visa

Best Employer of Record (EOR)

Hire globally with the best EOR companies

Best Contractor Management

Hire and pay contractors and freelancers

Best Global PEO

Discover the best international co-employers

Best PEO Companies

Save on payroll and HR costs

Best Background Check Companies

Screen employees before hire

Best Global Payroll Providers

Outsource international payroll

Best Relocation Services

Relocate employees internationally

International Company Registration

Get help to incorporate overseas

All Reviews

Compare all providers

1. Horizons

Best Global EOR

2. Remote

Best EOR for Compliance

3. Deel

Best EOR Platform

4. Papaya Global

Best EOR for Payments

All EOR Reviews

Compare all providers

Where do you need a service provider?

All Countries

Explore our detailed guides for professional advice on international growth, recruitment, compensations strategies, and a curated list of top service providers.

Thailand PEO: Benefits & Best Services in 2024

VERDICT: The best Thailand PEO in 2024 is Horizons. Horizons leads the Thailand PEO industry with its HR expertise, deep local networks and regional strength in South-East Asia. 

Thailand’s strategic location at the heart of Southeast Asia and its well-developed infrastructure and pro-investment policies make it an attractive destination for international businesses. But just like any other country, expanding into Thailand comes with unique challenges, such as understanding local labor laws, tax regulations, and cultural nuances. This is where Thailand PEOs come into play.

What is a Thailand PEO?

A Thailand Professional Employer Organization (PEO) is a firm that provides comprehensive human resources (HR) outsourcing services to foreign businesses looking to expand or operate in Thailand. PEOs co-employ your workforce, taking over many of the administrative, HR, and legal complexities associated with employing staff in a foreign country.

The PEO enters into a co-employment agreement with the client company, meaning that while the client company retains control over the day-to-day management of employees, the PEO takes on the responsibility for HR management, payroll, tax compliance, and other administrative tasks.

A Thailand PEO is similar to a Thailand Employer of Record (EOR) who becomes the legal employer for your local Thailand workforce. Often providers use the terms PEO and EOR interchangeably. 

The Top 5 Thailand PEOs in 2024

  1. Horizons: Horizons is a global PEO with a strong presence in Thailand and throughout southeast Asia. With a leading SaaS platform, a dedicated account manager in Thailand, local talent acquisition and a global network of entities, Horizons is the ideal local hiring partner. 
  2. Deel: Deel is an international PEO platform renowned for its multiple HR services and extensive integrations. Deel is a good Thailand PEO partner for any company wanting to integrate Thai PEO services with their international HR function.  
  3. Skuad: Skuad specializes in helping businesses hire, pay, and manage remote teams throughout Asia and the world. With relatively low prices, Skuad is a cost-effective hiring option for Thailand PEO. 
  4. Multiplier: Multiplier supports businesses hiring and paying employees in Thailand and throughout the world. With strong payments functionality, Multiplier is useful for companies that seek to make equity payments to Thai employees.  
  5. GoGlobal: GoGlobal are an international PEO platform allowing you to hire and pay employees in Thailand and throughout the world. One of the few international PEOs headquartered in Asia, GoGlobal is a highly respected hiring partner in Thailand and throughout the region. 

What Services Does a Thailand PEO Provide?

Thailand PEOs offer many services to help foreign companies navigate the complexities of operating in Thailand. These include:

  • HR and Benefits Management: PEOs provide comprehensive HR services, including drafting employee contracts compliant with local employment laws, managing employee benefits such as health insurance, handling HR issues, and ensuring compliance with Thailand’s labor regulations.
  • Payroll and Tax Administration: PEOs take over payroll processing and tax administration, ensuring timely and accurate payments and deductions according to Thai regulations.
  • Legal Compliance: Thailand has a complex legal landscape with numerous labor and employment laws. PEOs have in-depth knowledge of these laws and can help ensure your company remains compliant.
  • Recruitment Services: Many PEOs also offer recruitment services, helping companies source, hire, and onboard new employees in Thailand.
  • Risk Management: PEOs help manage the risk associated with employing staff in a foreign country, including dealing with employment disputes and workers’ compensation claims and ensuring workplace health and safety.
  • Global Mobility: This includes assistance with Thailand visas and work permits. 

How a Thai PEO Takes Care of Labor Law Compliance

A Thailand PEO takes care of all aspects of Thailand labor law compliance. This includes: 

  • Tax contributions. The employer must witholding income tax on behalf of employees. 
  • Employment contracts. The PEO will provide employees with a compliant local employment contract. 
  • Social security contributions. Both employer and employee are required to contribute 5 percent of the employee’s salary as required social insurance contributions covering maternity, disability and unemployment benefits. 
  • Leave. The employer must provide employees with the required leave allocations incluing annual leave, paid sick leave, maternity leave and paternity leave

Thailand Employment Law Updates in Review

What are the Benefits of a Thailand PEO?

Hiring a Thailand PEO can provide several benefits for foreign companies:

  • Ease of Market Entry: PEOs provide an easy and quick way for foreign companies to start operating in Thailand without the need to set up a legal entity.
  • Cost-Effective: PEOs can help reduce overheads by taking over many of the administrative tasks associated with employing staff, allowing companies to focus on their core business operations. Working with a Thai PEO means saving on the substantial cost of local company incorporation
  • Regulatory Compliance: With their expertise in Thai labor laws, PEOs can help ensure your company remains compliant, avoiding fines and legal issues.
  • Access to Local Expertise: PEOs have a deep understanding of the Thai market, culture, and business practices, which can be invaluable for foreign companies.
  • Risk Mitigation: PEOs help manage the risks associated with employing staff in a foreign country, helping to protect your company’s interests.

What are the Disadvantages of a Thailand PEO?

Despite the benefits, there are potential downsides to hiring a Thailand PEO:

  • Loss of Control: While the client company retains control over the day-to-day management of employees, many HR-related decisions are made by the PEO, which can lead to a loss of control.
  • Cost: While PEOs can be cost-effective in the long run, the upfront cost can be a barrier for some businesses.
  • Dependency on the PEO: The success of the partnership largely depends on the performance of the PEO.

Conclusion

Thailand PEOs provide a valuable service for foreign companies looking to expand into Thailand. They hire local employees, put them through a comprehensive onboarding process, manage international payroll and ensure full compliance with local labor regulations. 

Our pick for the top 5 PEOs for businesses expanding into Thailand are Horizons, Deel, Skuad, Multiplier and GoGlobal. 

FAQs

A Thailand PEO helps manage the risks associated with employing staff in a foreign country, including handling employment disputes, ensuring workplace health and safety, and managing any legal issues related to employment.

Yes, many Thailand PEOs offer recruitment services, assisting companies in sourcing, hiring, and onboarding new employees in Thailand.

cropped Travis Kliever 1
Article By
Travis is a global business development advisor. He has spent the last 14 years supporting business establishment and development in North America, Southeast Asia, and throughout the world. With multiple degrees from the University of Oregon, Travis currently splits his time between the US, and Bali, Indonesia. At RemotePad, Travis writes about remote work, hiring internationally and PEO/EOR business models.

Search

Search