Thai Labour Quota Explained: How Many Foreign Employees Can Your Company Legally Hire?

gentlelawlawfirm
Jul 24
4 min read

If you're a foreign entrepreneur or SME owner operating in Thailand — or planning to establish a presence — there's a crucial legal rule that directly affects your team-building capability:

"How many foreign employees can I legally hire in Thailand?"

The answer lies in the Thai labour quota system, which directly links your ability to hire foreign staff with your company’s paid-up capital and the number of full-time Thai employees registered with the Social Security Office (SSO).

Failing to meet this quota can lead to work permit denials, visa issues, or in severe cases, blacklisting by the Ministry of Labour.

In this article, GENTLE LAW IBL, Thailand’s trusted legal advisory for international businesses, breaks down the Thai labour quota system with legal precision — so you can scale your business while staying compliant.

📚 What Is the Thai Labour Quota Rule?

Under Thailand’s Working of Aliens Act B.E. 2551 (2008) and relevant Ministry of Labour regulations, the standard quota for companies not receiving BOI promotion is as follows:

THB 2 million paid-up capital per foreign employee, and
At least 4 full-time Thai staff per foreign employee

For example, if you wish to hire 2 foreign employees, your company must have:THB 4 million in registered and fully paid-up capital8 full-time Thai employees registered with the SSO

✅ Legal Definition of "Thai Employees"

To qualify under the quota, Thai employees must:

Be on the official company monthly payroll
Be fully registered with the Social Security Office (SSO)
Not be company directors or shareholders

📊 Summary Table: Quota Requirements for Non-BOI Companies

Number of Foreigners	Required Paid-Up Capital	Required Thai Staff
1	THB 2 million	4
2	THB 4 million	8
3	THB 6 million	12
4	THB 8 million	16

There is no statutory upper limit, but the Thai labour quota must scale proportionally with each foreign hire.

🛑 Who Is Exempt from the Thai Labour Quota?

Certain company types and categories may be exempted or subject to modified quota rules:

1. BOI-Promoted Companies

Companies approved by the Board of Investment (BOI) benefit from:

Exemption from the 4:1 Thai-to-foreigner ratio
No capital minimum required for foreign work permits
Quota flexibility depending on the approved business activity
Accelerated processing via the BOI One Stop Service Center

Reference: Investment Promotion Act B.E. 2520 (1977) and relevant BOI notifications

2. U.S. Companies under the Treaty of Amity

Treated as Thai nationals for ownership purposes
Still subject to quota rules for foreign work permits unless BOI-promoted

3. Foreign NGOs / International Organizations

Quota requirements are set at the discretion of the Ministry of Labour

⚙️ What Happens If You Don't Meet the Thai Labour Quota?

If your company fails to meet the quota requirements:

Work permit applications may be rejected or delayed
Visa extensions tied to employment may be denied
Company may be flagged for a compliance audit
Even renewals for existing foreign staff may be blocked

In serious cases, non-compliant companies may be blacklisted from hiring foreign workers altogether.

🧠 Common Mistakes Made by Foreign SMEs

Mistake	Legal & Compliance Risk
Registering high capital but not fully paying it in	Capital will be disregarded for quota calculation
Hiring part-time Thai employees to boost headcount	Non-compliant; not counted toward quota
Paying below minimum wage or skipping SSO registration	Staff disqualified from quota consideration
Failing to update company documents to reflect payroll changes	Application rejected or work permit suspended

🔧 Strategic Solutions by GENTLE LAW IBL

As your legal partner, GENTLE LAW IBL provides custom legal hiring structures that align with Thai law and support your growth:

Structuring paid-up capital correctly to meet quota requirements
Ensuring Thai staff are legitimately registered and compliant
Advising on capital call schedules or shareholder loans (where applicable and lawful)
Transitioning to BOI status for long-term hiring flexibility
Avoiding nominee structures or grey-area hiring practices

We go beyond applications. We build sustainable legal structures that protect your right to hire and grow.

💡 Alternative Path: Apply for BOI Promotion

If your business model involves:

Tech, export, or innovation-focused operations
A need to hire multiple foreign professionals or co-founders
A long-term view on tax and employment flexibility

Then applying for BOI promotion might be your best legal and strategic option.

GENTLE LAW IBL offers:

Eligibility assessment for BOI criteria
Full company structuring to meet BOI investment thresholds
Support with BOI application, tax incentives, and hiring roadmap

📌 Final Thoughts

The Thai labour quota system is strict, but manageable — provided you understand and comply with the actual legal criteria.

Before hiring foreign employees, consider:Your registered capital and whether it is fully paidThe number of eligible Thai staff on SSO recordsYour long-term visa and hiring strategy

Avoid shortcuts. Avoid informal advice. Avoid costly rejections.

Work with legal specialists like GENTLE LAW IBL who understand both the letter and spirit of Thai labour law.