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How much to pay staff for use of own car for business purposes.


AnotherMe

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Hi,

Can I ask what people pay their staff for using their own car for business trips? I noticed fuel prices are 40% down from 5 years ago and estimate a 100KM trip to cost about 200-250 THB in fuel (based on average car, average traffic conditions, and average driving - not racing). If I pay 400 baht on top of this does this seem enough to take care of other car costs such as insurance, maintenance and depreciation. Obviously this is averaged over a year.

Thanks in advance.

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Anywhere between 5-8 baht/km seems to be the usual for private companies today, the higher end being more common. You can pay more if your intention is to give your employees extra perks without taxes.

 

So if you are going to pay 650/100km, that would be around 6.5/km which is reasonable. You might get some grumbling about companies that pay more, but I doubt anyone would quit over it.

 

 

 

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7 hours ago, Belzybob said:

That looks to be a simple conversion from a (presumably) US rate into local currency. It may not reflect the actual cost in each country.

It is not, if you had used a calculator, you would see the rate in USA is around 11 baht kilometer.   Looks to be an is are two different things.

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I recently did a rough calculation of this for a budget clueless Thai lady I know. Budget 101 seems to be a subject not taught in Thailand.  

I came to 17 bt/ km.    Cars and petrol  more expensive than USA.  Tires and oil changes similar.   IRS in USA allows .55/ m. And I think this barely covers things.   You guys paying 6bt/ km are greedy b"*tards.  

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  • 4 months later...
On 21.11.2017 at 10:16 PM, Elkski said:

I recently did a rough calculation of this for a budget clueless Thai lady I know. Budget 101 seems to be a subject not taught in Thailand.  

I came to 17 bt/ km.    Cars and petrol  more expensive than USA.  Tires and oil changes similar.   IRS in USA allows .55/ m. And I think this barely covers things.   You guys paying 6bt/ km are greedy b"*tards.  

Let's say you buy a car for 1 million THB. You drive it for 200k km until it's value is zero (it's not zero then). And let's say maintenance cost until then is another 500k (it will most likely be less than that)

200k km at let's say 8 liter per 100 kilometer costs a bit less than 500k.

So let's say the total cost is 2 million for 200k kilometer

Your suggested 17 THB per kilometer would mean 3.4 million THB, but the real cost would be less than 2 million THB. A nice bonus for the employee.

If it's a sales guy who makes the 200k in 3 years you are paying him a "bonus" of nearly 500k a year ;)

Something like 7-10THB sounds fair to me

 

In Germany you get 19THB per kilometer, but gas costs twice as much as here and maintenance costs also way more.

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