Can an expatriate on a permanent contract claim severance pay in Thailand?

Yes. Any employee—expatriate or Thai—working under a contract governed by Thai law is entitled to legal severance pay after 120 days of service. Nationality does not matter; only the applicable law in the contract determines your rights: check the applicable law clause in your employment contract.

Are severance payments taxable in Thailand?

In Thailand, part of the severance pay may be exempt from income tax under certain conditions (length of service, amount). Tax regulations are complex and also depend on tax treaties between Thailand and your home country. Depending on whether you fall under French (DGFiP), Belgian (SPF Finances), Swiss (AFC), or Canadian (CRA) tax administration, the rules for double taxation vary. Consult a local tax expert for your situation.

What is the difference between severance pay and notice pay in Thailand?

These are two distinct rights. Notice pay corresponds to the remuneration owed if the employer does not respect the legal notice period (at least one full pay cycle, with a minimum of 30 days). Severance pay is an additional compensation calculated based on tenure, owed independently of notice pay. Both can be cumulative.

What happens if my employer goes bankrupt before paying my severance?

In the event of the employer's insolvency, employees (including expatriates) are considered priority creditors for unpaid wages and severance, according to Thai bankruptcy law. It is advisable to quickly file a claim with the Department of Labour and consult a local lawyer specializing in defending your rights during the liquidation process.

Can an employment contract specify severance pay lower than the legal minimum?

No. Severance pay set by Thai law constitutes a legal minimum that cannot be contractually waived to the detriment of the employee. Any clause specifying a lower amount is null and void. However, your contract can provide for severance pay higher than the legal minimum, which is common for senior expatriate positions.

Severance Pay in Thailand 2026

In Thailand, severance pay is governed by the Labour Protection Act. It applies to all employees, including expatriates, after 120 days of service. The amount varies from 30 to 400 days of salary depending on the length of employment.

The Legal Scale of Severance Pay in Thailand

The Thai Labour Protection Act (B.E. 2541 and its amendments, notably B.E. 2562) sets a precise scale. In 2026, the applicable thresholds are as follows:

120 days to less than 1 year: 30 days of salary
1 year to less than 3 years: 90 days of salary
3 years to less than 6 years: 180 days of salary
6 years to less than 10 years: 240 days of salary
10 years to less than 20 years: 300 days of salary
20 years and more: 400 days of salary

The calculation is based on the last monthly salary (or the average of the last 90 days for employees with variable pay).

💡 Good to know

Since the 2019 amendment (B.E. 2562), the cap has been raised to 400 days for employees with over 20 years of service. This provision also applies to expatriates under a local Thai contract.

Are Expatriates Covered by These Rules?

Yes, any employee working in Thailand under a Thai law contract—regardless of nationality—benefits from the protections of the Labour Protection Act. This includes:

Expatriates locally hired by a Thai company
Employees on assignment whose local contract was established in Thailand
Workers with an active Work Permit

However, if your contract is governed by the law of your home country (pure secondment contract), local rules may not apply directly. Always check the applicable law mentioned in your employment contract.

⚠️ Caution

Some employers draft hybrid contracts or ambiguous clauses regarding the applicable law. If in doubt, consult a local lawyer before signing or terminating a contract.

When is Severance Pay Not Due?

The employer may refuse to pay severance in the following cases:

Serious misconduct by the employee (fraud, theft, deliberate violation of internal regulations)
Job abandonment (unjustified absence of more than 3 consecutive days without notification)
Criminal conviction leading to contract termination
Voluntary resignation (unless a specific agreement is provided in the contract)

In these situations, the employer must be able to document and prove the misconduct. Unfair dismissal without valid reason incurs liability and may entitle the employee to additional compensation.

What to Do in Case of a Dispute Over Severance Pay?

If your employer refuses to pay the legal severance or disputes its amount, several options are available:

Thai Department of Labour Protection and Welfare: file an administrative complaint, free of charge
Labour Court: judicial procedure, longer timelines but binding decisions
Your embassy or consulate: can guide you to legal resources suitable for your nationality

✅ Practical Advice

Keep all your payslips, employment contract, evaluations, and any correspondence with your employer. These documents are essential in case of proceedings before the Thai Labour Court.

To learn more about your rights as a foreign employee in Thailand, check out our comprehensive guide: Labour Law in Thailand 2026.

⚠️ Disclaimer

This article is provided for informational purposes only and does not constitute legal advice. Laws and regulations vary by country and are subject to change. Consult a qualified professional for your specific situation.

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