Payroll and social security
How tax is withheld from a salary in Thailand
Facts checked against the sources on · Updated · Sources
An employer in Thailand withholds tax from a salary under s.50(1) of the Revenue Code: it multiplies each payment by the number of payments in the year (12 monthly, 24 twice a month, 52 weekly), deducts the 50% expenses up to 100,000 baht, the 60,000 baht personal allowance and the allowances the employee declares on form ล.ย.01, computes the progressive tax with the first 150,000 baht exempt, and divides the year's tax by the number of payments. A monthly salary of 30,000 baht with 875 baht of social security a month, for example, has 164.58 baht withheld each month.
The s.50(1) method#
| Step | What |
|---|---|
| 1 | Multiply the payment by the number of payments due in the year, as if paid all year: monthly × 12, twice a month × 24, weekly × 52 |
| 2 | Deduct expenses of 50% of the income, at most 100,000 baht (s.40(1) and s.40(2) together) |
| 3 | Deduct the personal allowance of 60,000 baht and the other allowances declared on ล.ย.01 |
| 4 | Compute the tax on the net income at the s.48 rates |
| 5 | Divide the year's tax by the number of payments: that is the payment's tax; a remainder is added to the year's last payment |
The Revenue Department's examples cut each payment's share at the satang (14,500 ÷ 12 = 1,208.33) and leave the rest to December (1,208.37).
The personal income tax rates#
| Net income (baht) | Rate |
|---|---|
| 0 – 150,000 | Exempt |
| 150,001 – 300,000 | 5% |
| 300,001 – 500,000 | 10% |
| 500,001 – 750,000 | 15% |
| 750,001 – 1,000,000 | 20% |
| 1,000,001 – 2,000,000 | 25% |
| 2,000,001 – 5,000,000 | 30% |
| Over 5,000,000 | 35% |
Allowances for tax year 2569 (2026), form ล.ย.01#
Allowances count for the whole year as declared on ล.ย.01, whatever month they are paid in.
| Allowance | 2569 |
|---|---|
| Expenses of employment income | 50%, at most 100,000 baht |
| The taxpayer | 60,000 baht |
| Spouse without income | 60,000 baht |
| Children | 30,000 baht each; 60,000 each for the second child onward born from 2561 (2018) |
| Parents (own, or a spouse's when the spouse has no income) aged 60 or over with income of at most 30,000 baht | 30,000 baht each |
| Disabled or incapacitated dependants | 60,000 baht each |
| Social security contributions | As actually paid |
| Provident fund (the employee's part) | The first 10,000 baht is an allowance; the rest is exempt up to 490,000 baht and 15% of wages, and 500,000 baht together with RMF, the Government Pension Fund, the private-school teachers' fund and pension insurance |
| Life insurance premiums | At most 100,000 baht |
| Own health insurance premiums | At most 25,000 baht; at most 100,000 together with life insurance |
| Parents' health insurance premiums | At most 15,000 baht |
| Home loan interest | At most 100,000 baht |
Allowances other than the expenses and the personal allowance are used when the employee files ล.ย.01 with the employer.
Bonuses, overtime and other occasional pay#
Instruction 2.5 of the PND.1 form: multiply occasional pay such as a bonus by the number of times it is paid in a year (a yearly bonus × 1), add it to the year's regular pay, compute the tax again, and subtract the tax on the regular pay for the whole year. The difference is withheld from the bonus in the month it is paid. Overtime paid month by month for the days worked is added up from the start of the year without annualising, and the tax already withheld on earlier overtime is credited.
Joining, leaving and the year end#
- Joining during the year: multiply by the payments actually due in that year; starting on 1 April with monthly pay, × 9.
- A pay change: compute the tax again by the same method each time.
- December, and the month an employee leaves: the employer may compute the tax on what was actually paid in the year and withhold what has not been withheld.
- Too much withheld: the employee claims it back on their own return (PND.90 or PND.91).
- Non-resident employees (in Thailand for less than 180 days in the year): a s.40(1) salary is still withheld by this method; the flat 15% applies to s.40(2) income only.
Worked examples#
Example 1. A salary of 30,000 baht paid monthly through 2569, with no allowance other than social security of 875 baht a month.
| Item | Baht |
|---|---|
| Year's income 30,000 × 12 | 360,000.00 |
| Less expenses: 50% (180,000), capped at | 100,000.00 |
| Less the personal allowance | 60,000.00 |
| Less social security 875 × 12 | 10,500.00 |
| Net income | 189,500.00 |
| Year's tax (189,500 − 150,000) × 5% | 1,975.00 |
| Withheld a month 1,975 ÷ 12 (cut at the satang) | 164.58 |
| December 1,975.00 − (164.58 × 11) | 164.62 |
Example 2. A salary of 50,000 baht, a spouse without income and one child, social security of 875 baht a month.
| Item | Baht |
|---|---|
| Year's income 50,000 × 12 | 600,000.00 |
| Less expenses | 100,000.00 |
| Less personal, spouse and child allowances (60,000 + 60,000 + 30,000) | 150,000.00 |
| Less social security | 10,500.00 |
| Net income | 339,500.00 |
| Year's tax (300,000 − 150,000) × 5% + (339,500 − 300,000) × 10% | 11,450.00 |
| Withheld a month 11,450 ÷ 12 | 954.16 |
| December 11,450.00 − (954.16 × 11) | 954.24 |
Example 3. The employee of example 1 is paid a bonus of 60,000 baht in December 2569.
| Item | Baht |
|---|---|
| Year's income with the bonus 360,000 + 60,000 × 1 | 420,000.00 |
| Less expenses, the personal allowance and social security | 170,500.00 |
| Net income | 249,500.00 |
| Year's tax with the bonus (249,500 − 150,000) × 5% | 4,975.00 |
| Less the tax on the regular pay for the year | 1,975.00 |
| Withheld from the bonus | 3,000.00 |
| Withheld in December 164.62 + 3,000.00 | 3,164.62 |
The year's withholding, 164.58 × 11 + 3,164.62 = 4,975.00 baht, equals the tax on the year's income. This employee's wages are already above the social security ceiling, so December's contribution stays at 875 baht.
In Panya#
Panya's payroll withholds the tax on every run by the method of the PND.1 instructions, with the allowances on each employee's ล.ย.01 card, taxes bonuses and overtime in the month they are paid, and always settles the year's tax on what was actually paid in the year's last payment or the month an employee leaves. See How the withholding tax is computed and Allowances (ล.ย.01) in the manual.
FAQ#
How much tax is withheld from a 30,000 baht salary?#
With only the personal allowance and social security of 875 baht a month, the year's tax is 1,975 baht: 164.58 baht a month, and 164.62 baht in December.
Below what salary is no tax withheld?#
When the year's net income after the expenses and allowances is 150,000 baht or less, the tax is nil and nothing is withheld, so the salary depends on each employee's allowances.
How is a bonus taxed?#
Add the bonus to the year's regular pay, compute the tax again and subtract the tax on the regular pay alone: the difference is withheld from the bonus in the month it is paid.
What if an employee hands in a new ล.ย.01 during the year?#
Use the new allowances from the next payment. Allowances count for the whole year, whatever month they are paid in, and the year's last payment settles the year's tax.
Does the employer refund tax withheld in excess?#
No. Tax withheld and remitted is claimed back by the employee on their own return, PND.90 or PND.91.
Sources#
- Revenue Code ss.38–64 (ss.47, 48 and 50), Revenue Department
- PND.1 form and instructions, Revenue Department
- Revenue Department order ป.96/2543 on withholding under s.50(1)
- Withholding tax seminar slides with worked examples, Revenue Department
- Summary of allowances, Revenue Department
- PND.90 instructions for tax year 2568, Revenue Department
This guide is general information from the sources above, as they read on the day they were checked. It is not legal or tax advice: rules change, so check the sources, or ask an accountant, before you rely on it.