In 2026, payroll compliance in Thailand has become more complex. What used to be a routine administrative task is now a high-risk area due to major regulatory changes, including higher Social Security Fund (SSF) contribution ceilings and the mandatory Employee Welfare Fund (EWF).
For businesses, payroll is no longer simply about calculating employee salaries. They are leaning towards staying compliant, reducing legal risk, and preserving employee trust. Professional payroll solutions help companies manage these changes by integrating technology with local expertise. As such, compliance with Thai labour laws is simpler and more reliable.
What Has Changed in the Regulatory Landscape?
Several payroll rules changed in Thailand starting 1 January 2026, with more updates expected later in the year. The changes are why payroll compliance should be every business owner’s priority.
Social Security Fund (SSF) Ceiling Increase – Phase 1
From 1 January 2026, the Social Security Office (SSO) raised the wage ceiling used to calculate SSF contributions.
For so long, the maximum monthly wage used to calculate contributions was capped at THB 15,000. As of 2026, the new ceiling is THB 17,500. This only means that monthly contributions are now higher.
- Contribution (both employer and employee): 5% of wages, capped at THB 875 (from THB 750)
The increase may only be THB 125 per employee, but this adds up quickly. If you are a company with 500 employees, you may notice a rise in monthly payroll costs, requiring timely updates to payroll calculations.
Relying on manual spreadsheets increases the risk of errors, especially when multiple versions are in use. This is why many mid-to-large businesses are turning to automated professional payroll solutions for accuracy and total compliance.
The Mandatory Employee Welfare Fund (EWF)
Another major change in 2026 is the introduction of the Employee Welfare Fund (EWF), which takes effect on 1 October 2026.
The EWF is mandatory for companies that have 10 or more employees, and do not already offer a qualifying Provident Fund (PVD).
Introducing a new statutory fund means setting up new payroll accounts, reporting systems, and official filings with the Department of Labour Protection and Welfare. Professional payroll providers handle these requirements and ensure that contributions are calculated and reported correctly from the first payroll cycle.
Expanded Leave Benefits under the Labour Protection Act (LPA)
Amendments to the Labour Protection Act (B.E. 2568), finalised in late 2025, are now fully effective in 2026. These updates directly affect how paid leave is calculated in payroll.
- Maternity Leave is extended to 120 days. The employer is responsible for paying 100% of the wage for the first 60 days.
- Paternity/Spousal Leave is a new 15-day fully paid leave for employees whose spouse has given birth.
- Childcare Medical Leave is 15 days of paid leave (50% of the wage) for parents caring for children with serious medical conditions. A medical certificate is required.
These expanded entitlements increase the complexity of payroll, especially when calculating partial pay and tracking leave balances. Professional payroll systems help ensure that all leave payments are calculated accurately.
Why Manual Compliance is a Risk in 2026
Payroll compliance in Thailand is more complex in 2026 because the rules are closely connected. A change in paid leave affects the employee’s monthly salary. This then changes Social Security Fund contributions, which also affects Personal Income Tax (PIT) calculations for the PND1 filing.
When payroll is handled manually, small mistakes could pile up and lead to bigger compliance concerns later on.
The Danger of Financial Penalties
The Thai Revenue Department and the Social Security Office now use more advanced digital audit systems. Incorrect or late filings are now easily detected.
Late or incorrect SSF filings may result in a 2% per month surcharge on unpaid amounts. Tax discrepancies, in general, can lead to fines and reputational risk during audits.
The Burden of Frequent Reporting
The administrative burden of submissions and reports on a small HR team is significant. Without professional payroll solutions, HR staff may spend the majority of their time on data entry instead of focusing on employee engagement and talent development.
How Professional Payroll Solutions Simplify the Burden
Professional payroll solutions move payroll accuracy away from manual work and into a secure, automated system. This makes payroll compliance easier and more reliable.
Automatic Statutory Updates
Professional payroll software works on a compliance-as-a-service model.
When the government announces a change, such as the January 2026 SSF ceiling increase, the system updates automatically. No need to change the formula manually; the THB 17,500 SSF ceiling is applied automatically based on the correct date.
Your payroll stays fully compliant without extra effort from your HR team.
Integration with Time and Attendance
Professional payroll systems integrate with digital time and attendance tools that guarantee accurate leave tracking.
- Paid vs unpaid leave is tracked automatically.
- For example, on the 61st day of maternity leave, the system switches from employer-paid to Social Security-covered pay.
- With a system like this in place, your company surely won’t overpay or under-report.
Accurate Electronic Filing (E-Filing)
Thailand’s payroll reporting is now largely paperless.
Modern payroll solutions generate government-ready files for:
- PND1 (tax)
- SSO submissions
- EWF reports
HR teams can upload these files directly to government portals, making no room for errors caused by manually entering data or transferring spreadsheets.
PDPA and Data Security
Payroll data contains sensitive personal information, such as bank details and ID numbers. Under Thailand’s Personal Data Protection Act, this data must be handled securely.
Professional payroll solutions provide:
- Encrypted systems and secure access controls
- Employee self-service portals for e-payslips
- Reduced reliance on unencrypted email (resulting in a reduced risk of data breach)
Benefits Beyond Compliance
Compliance may be the primary reason why many companies adopt professional payroll solutions. But more than this, these systems offer various benefits that support the growth of businesses in a competitive market.
Employees are becoming more aware of their rights. So when you, as the employer, provide a clear and professional payslip that reflects SSF and EWF deductions accurately, you build employee trust and corporate transparency.
A professional payroll system also allows businesses to scale efficiently. Whatever the number of employees your company has, be it 10 or 1,000, the system can easily handle increased payroll volume without the need to hire additional back-office staff.
Business leaders can also see labour costs in real time, and this would greatly help with more accurate budgeting for the succeeding fiscal year.
Choosing the Right Partner in Thailand
Not all professional payroll solutions are the same. So when you are choosing your provider or software, consider the following non-negotiables.
- Confirm if the provider has a dedicated legal team in Thailand that monitors the Royal Gazette for sudden legislative changes.
- They should have the ability to generate reports in Thai and English, which is essential for regional reporting.
- The provider should have cloud reliability, always ensuring that the system has a 99.9% uptime and backup protocols, because payroll is a time-sensitive operation.
Future-Proofing Your Business
The year 2026 marks the beginning of a more regulated and social-welfare-oriented employment era in Thailand. With the emergence of the Social Security ceiling hike and the new Employee Welfare Fund, compliance failures in payroll and contribution calculations can expose employers to penalties.
When you leverage professional payroll solutions, you can easily manage complex requirements through a smooth and automated process. Not only will your company be compliant, but you will also make it possible for your HR team to focus only on supporting employees.
If you are ready to protect your operations and make sure your company is totally ready for the changes coming in October 2026, now is the right time to review your current payroll systems and consider moving to professionally managed payroll services.
