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Thai severance pay calculator

Enter the first and last day of work and the wage to get the length of service and the legal severance at once.

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Employment

Severance under the law

Service
6 y 9 m 5 d (2,470 days)
Entitlement (s. 118)
240 days of wages
Daily wage
666.67
Severance
160,000.00
Tax-exempt part
160,000.00

Dismissal severance received from 1 January 2023 is exempt up to the last 400 days of wages and 600,000 baht; earlier receipts use 300 days and 300,000 baht (Regulations 394 and 126 clause 2(51)). Retirement and contract expiry do not qualify for this exemption. The service-based severance figure is an estimate: confirm entitlement and tax with your accountant, especially fixed-term contracts that may not qualify for severance.

Applies when the employer ends the job and the employee did nothing listed in s. 119 (fraud, wilful damage, 3 days absent without reason, ...). It excludes unpaid wages, pay in lieu of notice and unused annual leave, which are paid separately. A monthly wage is divided by 30 for the daily rate; the first and last days both count. Ask a lawyer or the labour office in a dispute. Calculated on your device; nothing is sent.

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Severance under Thai labour law

When an employer ends the job and the employee did nothing seriously wrong, the employee gets severance by length of service, from 30 days of wages up to 400 days for 20 years or more. This counts the service from your dates, takes the daily wage as the monthly wage ÷ 30 and shows the tax-exempt part.

Severance pay FAQ

How many days of severance by length of service?

Under section 118 of the Labour Protection Act: 120 days to under 1 year, 30 days of wages; 1 to under 3 years, 90 days; 3 to under 6 years, 180 days; 6 to under 10 years, 240 days; 10 to under 20 years, 300 days; 20 years or more, 400 days. Under 120 days, none.

How is the daily wage of a monthly employee worked out?

The last monthly wage divided by 30, times the days of entitlement. For example, 30,000 baht a month with exactly 3 years of service gives 180 days: 30,000 × 180 ÷ 30 = 180,000 baht.

When is no severance due?

When the employee resigns, or is dismissed for a reason in section 119: dishonesty, wilful damage to the employer, a serious breach of rules, absence for 3 working days in a row without good reason, or a final prison sentence.

Is severance taxed?

Statutory dismissal severance received from 1 January 2023 is exempt up to the last 400 days of wages and 600,000 baht under Regulation 394, amending Regulation 126 clause 2(51). Earlier receipts use 300 days and 300,000 baht. Retirement and contract expiry are excluded. The calculator selects the rule using the receipt date you enter. Excess severance and other termination payments may use a special tax calculation; check with your accountant.

Does it include pay in lieu of notice and unused leave?

No. Severance is separate from unpaid wages, pay in lieu of notice and pay for unused annual leave, which the employer must pay on top where they apply.