Spotlight on Thailand – A guide to implementing employee benefits technology

Thailand is an attractive destination for workers, offering a low cost-of-living and a welcoming culture – not to mention great weather and delicious food! Employees can access local benefits provided by the state, but to enhance their packages, larger employers usually offer supplementary benefits to ensure they can attract and retain the best talent.

Here’s an overview of the benefits landscape in Thailand…

State provision

Social security contributions and ceilings

Employers and employees each contribute 5% of the employee’s monthly salary to the Social Security Fund (SSF) which provides medical, unemployment and pension benefits. Benefits payments are calculated based on salary, but capped: the minimum salary used for calculation is THB 1,650 and the maximum is THB 15,000 per month. This means that even if an employee earns more than THB 15,000 per month, contributions – and benefit calculations – are based only on the first THB 15,000.

Pension

The state pension scheme provides benefits through a defined benefit (DB) pension scheme, used by mainly SMEs and local employers. The retirement age in Thailand is 60, but there are plans to increase it to age 65.

Short term sickness

Short-term sickness benefits begin with employer-paid sick leave, after which employees may receive sickness benefits through the Social Security Fund, administered by the Social Security Office. This ensures continued income support during periods of illness, combining both employer and state support.

Core benefits

Pension

Large employers will typically provide supplementary retirement benefits. These are commonly delivered through employer pooled provident funds on a defined contribution (DC) basis.

The minimum employer and employee contribution is equal to 2% of the employee’s pensionable salary and the maximum is 15%. Contribution rates can vary but, in most cases, both employers and employees contribute 5%.

Life insurance/death in service

Life insurance – also commonly called death in service benefits – are also provided through the state social security system. However, almost all employers will provide supplementary benefits through a group life (GL) insurance plan. The sum insured would typically be:

• 1x to 3x employee’s annual salary, or
• A fixed amount from THB 100,000 for junior employees to THB 2,000,000 for senior employees

Add-ons or rider benefits usually include medical insurance, accidental death and dismemberment (AD&D), and total permanent disability (TPD). This would be 100% financed by the employer, with access to the benefits after a waiting period of six months for TPD.

Private medical

While medical coverage is provided under Thailand’s Social Security Fund (SSF) – available to employees who have contributed for at least three months within the last 15 months – this state-provided care has limitations, particularly in terms of hospital choice and waiting times. As a result, many employees place high value on private medical insurance, especially for access to private hospitals and faster treatment.

The majority of multinational and large organizations in Thailand now offer private medical insurance as part of their benefits package. These plans typically cover inpatient, outpatient, dental, and maternity care. Coverage levels often vary by employee grade, with senior management receiving more comprehensive benefits and higher limits. It’s also common for employers to extend coverage to family members.

Other popular benefits

Car allowances

Senior staff at large employers may be provided with a vehicle through various arrangements, including:

• A company car with a personal driver
• A monthly allowance between THB 30,000 and THB 50,000 to cover the cost of leasing a vehicle, petrol, and insurance
• A one-time lump sum to purchase a vehicle

Bonus

All local employers offer an annual bonus of at least an employee’s month’s salary, with some providing an additional performance-related bonus equal to 2x to 5x monthly salary.

Wellbeing benefits

Wellbeing is beginning to grow with some multinational employers introducing allowances to enable employees to spend across physical and leisure activities – or even the latest tech. Support for wellbeing such EAP programmes is also being introduced gradually.

With a limited range of benefits in the market, allowances are a useful way to provide employees with greater support, flexibility, and choice.

Key considerations for rolling out global benefits in Thailand

1. Balance state support with private provision. While the Social Security Fund provides core benefits like healthcare, pensions, and life insurance, coverage is limited. Most multinationals offer supplementary benefits to remain competitive – particularly in areas like private medical coverage, retirement savings, and life insurance for dependents.

2. Use technology to simplify and scale. As benefit offerings grow more complex, especially across multiple locations, a centralized benefits platform can help manage eligibility, reduce manual admin, and improve the employee experience. Tools like Benifex allow employees in Thailand to easily view, select, and manage their benefits in one place – supporting both visibility and engagement.

3. Allowances create flexibility in a limited market. With a relatively narrow range of benefits locally, allowances offer a practical way to introduce choice. Whether supporting wellbeing, education, or lifestyle needs, allowances help personalize the employee experience without adding complexity for HR.

Going global with benefits?

If you’d like to understand more about the benefits landscape in Thailand – or you want to benchmark your offering, get in touch and speak to one of our global benefits experts.