Thai employee employment by farang regs

[notrub]

My brother in law (sort of) works full time away from home (Isaan) in BKK.  He has had full time employment with the same company for many years.  I don't know his day rate but think about 350 or 400 THB per day plus OT sometimes.  He is a good guy of about 45 yrs old and hard worker.  My wife's family are farmers and don't expect much from me so it is a pleasure to do things for them.  I was thinking that we need help keeping our 3+rai cleaned up and have projects from time to time.  What are the rules to employ this fellow  full time and have him work for us and allow him to take 1/2 time for their own rice fields too?  Currently sister and elderly mum and dad do most all.  They have 15 or 20 rai of rice.  No debts for that or for cars etc..  They have not much money but they are not 'poor'.

 

I would like to know what are the rules to legally employ and pay him and what overheads there would be on top of his wages.  Also, can I even do it legally?  I have only a retirement visa here without a business.  And for insurance and health care etc..  I have had a construction business in the past and have a general idea about employing people and the problems that can come up so I have my eyes open on this.

 

I am thinking 10,000 THB per month as a start point so it is not big money we are talking about.  It would be good as he could be at home and help on their own land and be our odd job man too.  

 

I am asking about this to be able to keep it in mind as a possibility but have not decided or mentioned it to anybody.

 

Thanks for your comments, bad experience examples welcome too.

 

 

 

 

[blackcab]

Just give him cash in hand. It's what nearly everyone does in these situations.

 

The burden is not on you to set up a limited company to employ him. The burden is on him to declare his income for tax (10k a month is below the tax threshold anyway).

 

Think about it logically. Does everyone set up a company to employ people who do casual work for them? No. The workers are self employed. Their tax matters are their business, not yours.

 

Don't even consider setting up a Thai company for this. It will be very expensive and you will constantly regret it. 

[notrub]

Thanks for the reply.  I thought so too.  But if he quits his job and works cash in hand for me does he lose benefits such as health insurance or some kind of social security?  I had thought that sick pay for employees is not the norm even for those employed in a shop by the month.  Is this true?  And for insurance at work from say, falling off a ladder.  What happens then?

 

If he did want to declare being self employed are there costs for him?  Would he get insurance etc. in this case do you think?

[blackcab]

On 04/09/2017 at 3:11 PM, notrub said:

Thanks for the reply.  I thought so too.  But if he quits his job and works cash in hand for me does he lose benefits such as health insurance or some kind of social security?  I had thought that sick pay for employees is not the norm even for those employed in a shop by the month.  Is this true?  And for insurance at work from say, falling off a ladder.  What happens then?

 

If he did want to declare being self employed are there costs for him?  Would he get insurance etc. in this case do you think?

 

If he is currently formally employed he will pay Social Fund contributions. These are 5 per cent of salary up to a maximum of 750 baht per month. These contributions would entitle him to a better class of medical cover at a selected hospital. Without this cover which is derived from his contributions he would have to use the lower grade universal health care which all Thais are entitled to a.k.a. "30 baht scheme".

 

If he was formally employed and paying Social Fund contributions for long enough (as opposed to getting cash in hand) he could volunteer to continue paying the contributions himself to retain the cover after he left his current job. The current contribution rate to cover yourself in this way is about 450 baht per month.

 

If he is eligeable to cover himself you could always pay him 10k per month plus his Social Fund, but you would have to check he set up the contributions with the Social Fund office correctly, rather than just keeping the money.

 

The cost of declaring self employment status? About 50 baht at the district office plus any personal income tax owing (the first 150k per year is tax free).

 

As I said, most people just go for the cash in hand option.

[notrub]

Thanks, very useful.  Any ideas about insurance on the job in case of accidents etc.?  Thanks again

[blackcab]

If he is self employed and he injures himself that's all down to him. This is Thailand and there isn't a culture of suing people for personal injury here.

 

If you employ someone and they die on the job (even if it's not your fault) it's normal to pay the funeral expenses immediately to help the family. A 30,000 baht cash payment would cover the funeral costs.

[notrub]

Thanks very much.  Very helpful.

 

Regards, Burton