The first time I tried to process payroll for two local staff members at my Phuket-based business, I nearly missed the PND 1 deadline. I didn't even know what PND 1 was. After a frantic call to an accounting firm on Phang Nga Road and a 500 THB "urgent filing fee," I learned something important: Thai payroll is not something you want to figure out as you go.
Whether you're running a dive shop in Rawai, a villa management company in Surin, or a serviced accommodation business in Bang Tao, employing staff in Phuket means navigating monthly withholding tax filings, Social Security Fund contributions, provident fund rules, and labour law severance obligations. Get it wrong and the Revenue Department surcharges add up fast.
This guide covers the best payroll outsourcing options for Phuket-based expat business owners in 2026 — what they cost, what they include, and how to choose the right one for your size and complexity.
Quick Facts: Phuket Payroll in 2026
- PND 1 (monthly withholding tax) due by the 7th of the following month (15th if filing online)
- Social Security Fund (SSF): employer contributes 5% of salary, capped at 750 THB/month per employee
- Minimum wage in Phuket: 370 THB/day (as of January 2026)
- Outsourced payroll cost: 300–1,200 THB per employee/month depending on tier
- Annual employee income summary (PND 1 Kor) due by 28 February each year
- Labour law severance: after 3 years, 180 days' wages minimum — must be tracked correctly
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Why Thai Payroll Is More Complex Than You'd Expect
If you're used to running payroll in the UK, Australia, or the US, you might assume it's mostly the same everywhere: calculate salary, deduct taxes, pay the person. Thailand adds several layers.
Monthly PND 1 Filing
Every month you employ someone in Thailand, you must file PND 1 (ภ.ง.ด.1) — the monthly withholding tax return — with the Revenue Department. This applies even if no tax is owed (because your employee earns below the tax-free threshold). The deadline is the 7th of the following month, extended to the 15th for online filings at efiling.rd.go.th. Miss it and you face a 1.5% per month surcharge on any tax owed, plus potential penalties.
Social Security Fund (SSF)
Both employer and employee contribute 5% of the employee's monthly salary to the SSF (กองทุนประกันสังคม), capped at 750 THB from each side per month. So the maximum combined contribution is 1,500 THB/month regardless of salary. Contributions are filed and paid monthly, separate from income tax. The Social Security Office in Phuket Town handles local filings and audits.
Annual PND 1 Kor
At year-end, you must submit PND 1 Kor — the annual summary of all employees' income and withholding tax — by 28 February. This is also the document your employees use to file their personal tax returns. Errors here create cascading problems.
Labour Law Severance Obligations
Thailand's Labour Protection Act mandates severance pay based on length of service. An employee who has worked for you for 3–6 years is entitled to 180 days' wages if terminated without cause. Your payroll records are the evidence for these calculations. Poorly maintained records make disputes expensive.
Many expat employers pay staff as "daily contract" workers to avoid labour law obligations. Since 2023, Thai labour authorities have increased scrutiny of this practice. If someone works regular hours at your direction, they're almost certainly an employee under Thai law regardless of what the contract says.
What Phuket Payroll Outsourcing Providers Actually Do
A good payroll outsourcing service in Phuket takes the monthly admin completely off your plate. Here's what a standard engagement covers:
Core Service (All Tiers)
- Monthly salary calculations (including overtime, bonuses, deductions)
- PND 1 preparation and submission to the Revenue Department
- SSF contribution calculation and filing
- Payslip generation in Thai and English
- Annual PND 1 Kor preparation
Premium Service (Mid to High Tiers)
- Provident fund (PVD) administration if you have a scheme
- Leave tracking (annual leave, sick leave, statutory holidays)
- Employment contract templates compliant with Thai Labour Protection Act
- HR advisory (handling disputes, terminations, disciplinary procedures)
- Foreign staff payroll including LTR Visa flat-tax calculations
- Multi-currency payroll for staff paid partly in foreign currency
Phuket Payroll Service Comparison 2026
These are the providers with actual Phuket presence or strong Phuket client bases. Bangkok-only firms can work remotely, but if you ever need a face-to-face meeting, local matters.
| Provider | Office Location | Price Range | Min. Staff | English Service | Best For |
|---|---|---|---|---|---|
| Sunbelt Asia | Phang Nga Rd, Phuket Town | 500–900 THB/emp/mo | 1 | ✅ Excellent | SMEs, full HR+payroll package |
| Phuket Expat Accounting | Chalong / Rawai | 350–700 THB/emp/mo | 1 | ✅ Good | Small businesses, 1–10 staff |
| Thai Accounting Office | Chalong | 300–600 THB/emp/mo | 2 | ✅ Good | Cost-conscious small businesses |
| Mazars Thailand | Bangkok (Phuket remote) | 700–1,200 THB/emp/mo | 5 | ✅ Excellent | Mid-size, complex structures |
| PKF Thailand | Bangkok (Phuket remote) | 600–1,000 THB/emp/mo | 5 | ✅ Excellent | Multi-entity, international staff |
| KPMG Thailand | Bangkok (Phuket remote) | 1,000+ THB/emp/mo | 10 | ✅ Excellent | Large operations, BOI companies |
For businesses with fewer than 5 employees, a local Phuket-based accountant often beats the big Bangkok firms on price and responsiveness. The Chalong area has several solid bilingual accounting practices that handle payroll, VAT, and corporate tax all-in for under 5,000 THB/month for a small operation.
How to Choose the Right Payroll Provider in Phuket
Match Size to Provider
A Chalong-based accounting firm with one English-speaking accountant is perfect for your 3-person dive shop. It's not the right choice for a 40-employee resort property with international staff on LTR Visas and a provident fund scheme. Think about your actual complexity, not just headcount.
Check Their Social Security Knowledge
SSF rules changed in 2025 — specifically the voluntary contribution provisions for foreign-employed Thai workers. Ask any prospective provider how they handle SSF for employees who split time between Thailand and abroad. If they look blank, move on.
Understand the Data Handoff Process
How do you submit monthly changes (new hires, terminations, overtime)? Email? A portal? Some smaller providers still work by WhatsApp, which is fine for simplicity but creates audit trail problems. Ask how records are stored and whether you can access historical data directly.
Clarify Who Covers Penalties
If the provider makes an error — wrong tax calculation, missed SSF filing — who pays the surcharge? Good providers have explicit liability clauses in their service agreements. Get this in writing before signing anything.
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If you have just one or two employees and a clear, simple salary structure, in-house payroll is doable. You'll need to register as an employer with the Revenue Department and the Social Security Office. Both can now be done online. The actual monthly process takes about 2 hours once you know what you're doing.
Tools that help with in-house Phuket payroll include Xero Payroll (which handles Thai payroll if correctly configured), AccountingCloud.co.th (Thai-focused, very affordable), and basic Excel templates from the Revenue Department website. For the PND 1 online portal, efiling.rd.go.th works fine once you have your digital filing certificate set up.
The honest advice: if you have more than 3 employees, or if any of your staff are on commission/overtime structures, outsource it. The monthly cost is 1,500–4,500 THB for a small team. The cost of getting it wrong even once is usually higher.
Special Considerations for Foreign-Employed Businesses
LTR Visa Holders as Employees
If you hire foreign staff who hold Thailand's Long-Term Resident (LTR) Visa, they may qualify for a flat 17% income tax rate on qualifying foreign-source income. This is a significant benefit but requires specific payroll handling. Not all local accountants are up to date on LTR payroll rules — ask explicitly before engaging.
Staff Paid Partly Overseas
If you pay a Thai employee part of their salary into a Thai bank and part into a foreign account (common in international villa management companies operating out of Phuket), the entire salary is technically Thai-source income and should be included in PND 1 calculations. This is frequently mishandled.
Seasonal Staffing Patterns
Phuket businesses often scale up significantly for high season (November–April) and reduce headcount in low season (May–October). Thai labour law has specific rules about fixed-term contracts and their renewal limits. Your payroll provider should understand seasonal business structures — ask for references from other Phuket tourism or hospitality businesses.
Still Confused? We've Been There Too.
Thai payroll has a steep learning curve. Our team has helped hundreds of Phuket expat business owners get compliant without the stress. First question is free.
Ask Us Anything →Related Guides
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- Thai work permit guide for Phuket expats
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- Working and doing business in Phuket Town
