Today, Thai Business Expert received an inquiry from one of our valued clients
regarding the overtime rates in Thailand.
Our usual working hours starts at 8:30 AM and ends at 5:30 PM, Monday to Friday. We
pay our employees by monthly salary. Please confirm whether my understanding on
the following overtime (OT) rates is correct and it follows the Thai Labour Law.
OT 1: For employees who work after the usual 8 hours, any day during Monday to
Friday, OT rate should be 150% of the hourly rate?
OT 2: For employees who work for a usual 8-hour working time on a day off or holiday (weekends and public holidays), OT rate is 100% of the normal salary?
OT 3: For employees who work before or after his usual working time on a day off
or holiday (weekends and public holidays), OT rate is 300% of the normal salary?
Yes, all overtime rates are correct although for Overtime 2 and Overtime 3, rates are to be applied to the normal hourly rates, not monthly.
Thus, for work performed in excess of the maximum number of hours fixed either by regulation or by specific employment agreement (if the latter is lower), employees must be
paid overtime compensation. The rates of overtime vary ranging from 1.5 times
to 3 times the normal average hourly wage rate for the actual overtime worked. However,
certain employees engaged in employment related work on behalf of the employer
and other types of work as prescribed by Thailand Labour Law are not entitled to overtime compensation. The maximum number of overtime working hours is limited to not more than 36 hours a week.
Contact MSNA for your questions and further information on over time computation and employee’s benefits.