Understanding Thailand’s “4 Thai Employees per Foreigner” Rule

Understanding Thailand’s “4 Thai Employees per Foreigner” Rule

A 2025 Legal Guide for Foreign-Owned Companies

Foreign investors in Thailand frequently ask:

“Why must I hire 4 Thai employees just to obtain 1 foreign work permit?”

This requirement can feel burdensome, especially for startups or small foreign-owned companies. In this guide, GENTLE LAW IBL explains the policy foundations, legal requirements, exceptions, and smart strategies to comply without risking penalties.

⚖️ What Is the “4 Thai Employees per Foreigner” Rule?

According to the Ministry of Labour regulations and related immigration policies, any Thai company wishing to sponsor a Non-Immigrant “B” visa and work permit for a foreigner typically must:

✅ Employ at least 4 full-time Thai nationals employees per 1 foreigner.

This rule is applied to:

• Promote employment for Thai citizens

• Discourage shell companies for visa purposes

• Ensure social security and tax contributions

🧾 Where Is This Requirement Defined in Thai Law?

Although the Foreigners’ Working Act B.E. 2551 does not directly state this ratio, it is enforced in practice through:

• Labour Ministry Work Permit Regulations

• Immigration Bureau visa extension policies

• Department of Business Development (DBD) practices

• BOI and Foreign Business License (FBL) conditions

Legal Reference Sources:

• Labour Ministry Guidelines on Work Permit Criteria

• Immigration Bureau Notification on Visa Extensions for Foreign Employees (available via Immigration Bureau official website)

• BOI Investment Promotion Conditions

👩‍💼 Who Qualifies as a “Thai Employee”?

To count toward the 4:1 ratio, each employee must be:

✅ A Thai national✅ Full-time staff with valid employment contracts✅ Registered with the Social Security Office (SSO)✅ Paid no less than the legal minimum wage✅ Declared for payroll tax and monthly social security contributions

The following do NOT qualify:

• Part-time or freelance workers

• Unregistered “ghost employees”

• Family members without formal contracts

• Staff not yet registered with SSO

📊 Example Scenarios

Company Type	Thai Employees	Eligible Foreign Work Permits
Thai majority-owned	4	1
100% foreign-owned	8	2
BOI-promoted project	0–1	1+ (depends on project)

Note: BOI exemptions are explained below.

🧩 Why Is This Rule Critical?

Without meeting the ratio:

• Work permit applications can be rejected

• Visa extensions can be denied

• Future applications for additional foreign staff can be blocked

• Your company can face scrutiny during annual audits

Even if your business has high registered capital, Thai regulators still expect you to meet employment ratio requirements.

🛠️ Strategies to Meet the “4 Thai Employees per Foreigner” Requirement

1️⃣ Hire Full-Time Thai Employees

• Roles: admin, finance, sales, or customer support

• Ensure each is properly registered with SSO and declared for tax

2️⃣ Apply for BOI Promotion (If Eligible)

BOI-promoted companies are exempt from the 4:1 ratio and can sponsor foreign work permits with flexibility.

Examples of eligible activities:

• Software or tech development

• International trading centers

• R&D operations

GENTLE LAW IBL provides strategic BOI structuring services.

3️⃣ Use Professional Employer Organization (PEO) Services

PEO or HR outsourcing providers can:

• Legally place Thai staff on your payroll

• Handle tax and social security filings

• Meet ratio requirements without disrupting operations

We can recommend trusted partners to streamline this process.

4️⃣ Time Your Application

If you have recently hired staff, wait 1–2 months until social security contributions are recorded before applying. The Labour Office typically requires evidence of at least one cycle of contributions.

🧮 How Is the Ratio Verified?

Verification Area	Checked By
SSO registration status	Labour Office
Payslips and withholding tax filings	Revenue Department
Duration of employment	Immigration Bureau
Office site inspection	Department of Employment

Tip: Keep all records updated and ready for inspection.

🛡️ Are There Exemptions?

Yes. The ratio requirement does not apply to every situation:

Situation	Ratio Requirement
BOI-promoted companies	❌ No ratio required
FBL companies	⚠️ Case-by-case exemption
Foreigners married to Thai citizens	✅ Only 2 Thai employees needed
Permanent residents	❌ No work permit required
U.S. Amity Treaty companies	⚠️ Reduced ratio possible

GENTLE LAW IBL will assess your eligibility before proceeding.

⚠️ Common Mistakes to Avoid

❌ Counting part-time or freelance staff❌ Using “ghost employees” with no payroll record❌ Filing social security too late❌ Assuming BOI exemption without approval❌ Applying before staff contributions are visible

These mistakes often lead to visa denial, fines, or delayed business registration.

✅ Summary Checklist

Task	Status
Hire 4 full-time Thai employees?	☐
Register employees with SSO?	☐
File payroll tax?	☐
Prepare employment contracts?	☐
Explore BOI/FBL options?	☐
Time application after SSO contributions?	☐

📩 Need a Smarter Way to Comply?

GENTLE LAW IBL specializes in:

• Designing compliant company structures

• Managing Thai staff onboarding and SSO registration

• Securing BOI or FBL exemptions

• Preparing visa and work permit applications
  

Contact us today to protect your business and focus on growth.

TAG : NON B VISA