Severance Pay Calculator (Thailand, 2026)
Thai severance pay depends on length of service: 30 days' latest wage from 120 days to under 1 year, 90 days for 1 to 3 years, 180 days for 3 to 6, 240 days for 6 to 10, 300 days for 10 to 20 and 400 days for 20 years or more (Labour Protection Act, section 118). Retirement counts as termination; resignation and serious misconduct do not.
· Calculated with AiStaffo
The rules in Thailand
| Law | Labour Protection Act B.E. 2541 (1998), sections 118 and 119, as amended by the Labour Protection Act (No. 7) B.E. 2562 (2019) |
|---|---|
| 120 days to under 1 year | 30 days' latest wage |
| 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 |
| Wage used | Latest wage rate; for monthly-paid employees one day = monthly wage ÷ 30, so 30 days = one month |
| Retirement | Retirement at the agreed age, or 60 if none is set, counts as termination by the employer |
| Not paid | Resignation, and dismissal for serious misconduct under section 119 |
Worked example
Monthly wage THB 30,000, 7 years and 2 months of service, contract ended by the employer. Service of 6 to under 10 years earns 240 days.
30,000 ÷ 30 × 240 = THB 240,000 (8 months' wage). With 20 years or more the same wage would give 400 days = THB 400,000.
The 400-day step since 2019
The Labour Protection Act (No. 7) of 2019 added the 400-day step for employees with 20 years or more of service; before that the highest step was 300 days at 10 years. Retirement counts as termination, so long-serving employees who retire at 60 receive the full 400 days.
For employers: gratuity is one line of what a role costs
Gratuity, leave, statutory contributions and notice periods all sit on top of salary. Routine back-office roles such as data entry, follow-ups, reconciliations and reporting can be handed to AI workers that carry none of these costs. Book a free automation audit and we will put your own figures on it.
Please note: this calculator follows the published law and common practice as checked on 21 October 2026. It is a guide, not legal advice. Contracts can give more than the legal minimum, and special cases (part-time work, free zones, disputes) can change the figure, so confirm the final amount with your HR team or a lawyer before paying or accepting a settlement.
Sources
Questions people ask
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