We have an inquiry from many clients of how to calculate overtime payment for monthly salaried employees. If you have not read our excerpt of Thailand Labor Law, please consider reading it first. Below is the answer and an example of how to calculate overtime payment.

The maximum number of working hours of employees is fixed by law at 8 hours a day and 48 hours a week in total. Most employers, however, set it at 8 hours a day and 5 days a week (so 40 hours a week). For work performed in excess of the maximum number of hours, which is fixed either by the company’s regulation or by specific employment agreement (if the latter is lower), the employee must be paid overtime compensation. The rates of overtime are:

– 1.5 times if the employee works outside of normal working hours on normal work days. 

– 2 times if the employee works during normal working hours on a holiday. However, in case of monthly salaried employees, the employer will pay only 1 time extra because his monthly salary has already covered 1 time when he does not work on the day.

– 3 times if the employee works outside of normal working hours on a holiday. 

Example: A company’s normal work hours is 8 AM to 5 PM with 1 hour lunch break in between, Monday to Friday. If an employee whose monthly salary is THB 24,000, works for an hour after 5 PM, then the overtime rate is 150% of his hourly rate. You need to use 30 days per month (even if a particular month has more or fewer than 30 days) and 8 hours per day to calculate his hourly rate. In our example, his hourly rate is 24,000/30/8 = THB 100.

If the same employee works on a Saturday during 8 AM to 5 PM with 1 hour lunch break, he will be paid an OT of THB 100 per hour for this day.

If this employee happens to work after 5 PM on a holiday, he will receive 3 times the normal hourly rate for this period of work which is 100 x 3 = THB 300 per hour.

Consult with our Thai Lawyers at MSNA Group for your business and labor law issues.

When the company moves its office, it has to register the change with the Department of Business Development. However, in case it is registered in the VAT system, it has to file Form PP09 to change the address with the Revenue Department at least 15 days before registering the change with the Department of Business Development. Failure to do so will result in a fine of a few thousand Baht.

Now to register the change of address with the DBD:

A. Registering the change of address within the same province can be done within one day. However, the preparation of the registration forms and related documents may take much longer.      

B. Registering a relocation to another province will result in an amendment of the section 2 “Location of the company’s office” of the company’s Memorandum of Association (MOA). The process will take roughly 20 days with the following steps

1. The MOA can be amended through the Extra Ordinary Shareholder’s Meeting.

2. To summon the meeting, the signatory director will have to send a letter calling for the meeting to shareholders not less than 14 days before the date of the meeting.

3. Once the meeting has been held and the relocation has been approved through the meeting resolution, the relocation can then be registered with the Office of Partnership and Company Registration.

The mentioned process is only for the registration of the relocation of company’s registered office with the Department of Business Development. You also have to notify the Social Security Office if you have been registered with it when you first had an employee. Contact MSNA Group for your business needs in Thailand.