Your Rights When Laid Off in Thailand: Severance, Social Security, Tax

A plain guide to your rights when laid off in Thailand: severance, notice pay, unemployment benefits and tax, plus a checklist before you sign anything.

The day HR calls you into a small meeting room with a stack of papers, many people sign every page within ten minutes because they are still in shock. Yet those papers may decide how much money you receive and what you can still claim. This article summarises the key rights under Thai labour law that you should know before you pick up the pen. It is general information to help you ask the right questions, not legal advice.

Termination vs resignation: a bigger difference than you think

Almost every right in this article depends on one question: were you terminated, or did you resign? Some companies ask employees to write a resignation letter in exchange for an extra lump sum, which can change your statutory severance, your unemployment benefits and your tax exemption all at once. If someone hands you a ready-made resignation letter to sign, stop and ask why it has to be a resignation.

Severance under Section 118

Under Section 118 of the Labour Protection Act (as summarised by Thai Law Online, and reported by Thai PBS on the amendment that raised the top tier to 400 days), an employer who terminates an employee who has not committed serious misconduct defined by law must pay severance based on continuous service:

• 120 days to under 1 year: 30 days of wages
• 1 year to under 3 years: 90 days of wages
• 3 years to under 6 years: 180 days of wages
• 6 years to under 10 years: 240 days of wages
• 10 years to under 20 years: 300 days of wages
• 20 years or more: 400 days of wages

This is the minimum. A company may pay more but not less. Hypothetical example: you have worked 4 years and 2 months on a monthly wage of 30,000 baht, so you fall in the 180-day tier and the minimum severance is about 180,000 baht. If the figure in the document is lower, ask how it was calculated straight away.

Money that is separate from severance

Pay in lieu of notice

If the employer lets you go immediately without the advance notice the law requires, it must pay wages in lieu of notice. Thai Law Online notes this is a separate amount from severance and the two are often confused.

Pay for unused annual leave

Remaining annual leave must also be paid out. Count your remaining days before the meeting.

Social Security unemployment benefits

Thairath summarises the Social Security Office conditions: a Section 33 insured person who has paid contributions for at least 6 months within the 15 months before unemployment is entitled to unemployment benefits. What to know:

• Termination gives better benefits than resignation: if terminated you can receive benefits for up to 180 days a year; if you resign or a contract ends, up to 90 days a year (Bangkok Biz News, August 2026). The percentage of wages has been changed several times, so check the current rate directly with Social Security.
• Register as unemployed online with the Department of Employment as soon as possible after leaving. Do not wait until you find a new job.
• Report every month on the set cycle. If you miss a report, you may not be paid for that period.
• Ask the Social Security hotline at 1506 about medical coverage after leaving and Section 39 enrolment.

Tax on your final payout

• Section 118 severance received because you were terminated is tax-exempt up to the last 300 days of wages and no more than 300,000 baht, under Ministerial Regulation No. 126, clause 2(51), as cited in Revenue Department rulings.
• Another Revenue Department ruling states that if you resign, money the company pays you is not termination severance even if calculated the same way, so it is not exempt. Pay in lieu of notice and unused leave pay count as ordinary employment income.
• Keep your termination letter, withholding tax certificate and every pay slip for your year-end tax filing.

Documents to read line by line

Look for these points in a termination letter or separation agreement:

• Waiver of claims (waiver or release): wording that you will make no further claims. If the money is not yet complete under the law, do not sign yet.
• Reason for leaving: it should say termination, not resignation, if that is the fact.
• Non-compete and NDA: who you cannot work for, for how long, and where.
• Effective date and payment date

A polite line you can use: Thank you for letting me know. I would like to take the documents home to read and check the numbers first. Could I reply by ...? Asking for time to check documents is normal.

Read first, sign later. Getting the numbers right matters more than speed.

Where to start: a checklist for the first 48 hours

1. Photograph or request a copy of every document you receive.
2. Work out your continuous service and which severance tier you are in.
3. List the money: severance, pay in lieu of notice, unused leave, outstanding wages, then compare with the documents.
4. Make sure the documents state that this is a termination.
5. Register as unemployed online and put your reporting dates in your calendar.
6. If the money is short, file a complaint with a labour inspector or sue in the Labour Court yourself. iLaw notes neither route requires a lawyer or court fees.

Laws and benefit rates change. Before any high-value decision, consult your local Labour Protection and Welfare office, Social Security, or a labour lawyer. Once the paperwork is settled, read our guide to planning after a layoff or ask the AI Career Assistant to plan your next job search.