Thailand Severance Pay Calculator
Calculate statutory severance pay across all 6 service tiers (up to 400 days of wages), evaluate Section 119 serious misconduct exceptions, and verify retirement entitlements under Thai labour legislation.
Employment & Termination Details
Provide exact service dates, wage arrangement, and termination circumstances. Continuous service is calculated accurately in calendar days.
- Service duration: 6 years, 9 months, 25 days (2490 calendar days).
- Applicable Section 118 tier: 6 years to less than 10 years → 240 days of wages.
- Monthly wage: THB 30,000.00 (Daily equivalent = THB 30,000 / 30 = THB 1,000.00)
- Calculation formula: 240 days × THB 1,000.00 = THB 240,000.00.
The 6 Statutory Severance Tiers in Thailand
Section 118 of the Labour Protection Act B.E. 2541, as amended by Labour Protection Act (No. 7) B.E. 2562 (2019), sets mandatory minimum severance pay across six continuous service tiers.
| Continuous Service Period | Statutory Severance Pay | Monthly Salary Multiplier | Legal Basis |
|---|---|---|---|
| Less than 120 consecutive days | None (0 days) | 0x | Section 118(1) |
| 120 consecutive days to less than 1 year | 30 days of wages | 1x months | Section 118(1) |
| 1 year to less than 3 years | 90 days of wages | 3x months | Section 118(1) |
| 3 years to less than 6 years | 180 days of wages | 6x months | Section 118(1) |
| 6 years to less than 10 years(Selected Tier) | 240 days of wages | 8x months | Section 118(1) |
| 10 years to less than 20 years | 300 days of wages | 10x months | Section 118(1) (as amended 2019) |
| 20 years or more | 400 days of wages | 13.33x months | Section 118(1) (as amended 2019) |
Exceptions and Special Protections
Severance calculations must consider critical statutory exceptions, mandatory written notice requirements, and special severance provisions.
1. Section 119 Misconduct Exceptions
Employers may lawfully dismiss employees without severance pay strictly for: (1) dishonesty or intentional crime; (2) intentional damage; (3) gross negligence causing serious damage; (4) work rule violations after written warning within 1 year; (5) 3 consecutive days of unjustified absence; or (6) final court imprisonment. The employer must state these grounds in the written dismissal letter at the time of termination.
2. Fixed-Term Contract Exemption
Under Section 118 paragraphs 3 & 4, fixed-term contracts are exempt from severance only if the contract was signed in writing at the start of employment for a special project outside normal business, temporary work, or seasonal work, not exceeding 2 years. Regular business employees on fixed-term contracts are not exempt.
3. Mandatory Retirement as Termination (Sec 118/1)
Enacted under Labour Protection Act (No. 6) B.E. 2560, retirement is legally deemed an employer termination. Employees reaching the contractual retirement age (or age 60 if no retirement age is specified) are entitled to full statutory severance pay based on their completed years of service.
4. Relocation & Tech Restructuring (Sec 120 - 122)
Employers relocating operations must provide 30 days advance notice; refusing employees receive special severance equal to Section 118. In technological restructuring (Section 121), employers must give 60 days notice; employees with ≥ 6 years service receive additional special severance of 15 days per year above 6 years (capped at 360 days).
Official Sources & Legislative References
All statutory tiers, formula multipliers, and exception criteria are maintained directly against official Thai legislation and Ministry of Labour guidelines.
Official statutory repository maintained by the Ministry of Labour, Thailand.
Current International Labour Organization profile on dismissal, severance, and leave in Thailand.
Official guidance establishing the 6 tiers of severance pay up to 400 days.
Frequently Asked Questions
Common questions regarding severance pay tiers, tax exemptions, and termination settlements in Thailand.
