Introduction
In June 2025, the Thailand Board of Investment (“BOI“) issued Notification No. Por. 8/2568 (“Notification“), introducing new criteria for the consideration of position approval, placement, and extension of expatriates. The Notification represents a significant regulatory shift, particularly for BOI-promoted companies in the manufacturing sector.
This Update examines the key provisions of the Notification, its rationale, and the potential implications for companies employing foreign personnel.
Foreign Employment Ratio in Manufacturing Enterprises
One of the most notable changes is the introduction of a foreign employment ratio applicable to BOI-promoted manufacturing companies. The ratio is triggered only when the enterprise employs more than 100 individuals in total, regardless of nationality.
- Enterprises with fewer than 100 employees are exempt from the ratio.
- Enterprises with more than 100 employees must ensure that at least 70 percent of their workforce are Thai nationals, thereby limiting foreign employees to a maximum of 30 percent.
BOI has justified this measure as a policy instrument to promote domestic employment and to encourage professional development opportunities for Thai workers. Notably, the Notification provides an exception under Article 4.2.4, which allows the BOI committee to exercise discretion in cases involving manufacturers of strategic importance or where compliance with the ratio is impracticable. The scope of such exceptions, however, remains undefined and will be determined on a case-by-case basis.
Minimum Salary Thresholds for Expatriate Positions
The Notification also revises the minimum salary criteria applicable to expatriate positions. Although salary thresholds were previously included in earlier notifications, the Notification expands the requirement to encompass nearly all levels of expatriate employment. The prescribed monthly minimum salaries are as follows:
| Average Monthly Salary Payment (Thai Baht) | Reduced Rate (applies in the event that the applicant holds a bachelor’s degree in the relevant field of work) | |
|---|---|---|
| Executive level
i.e. Chairman, President, Chief Executive Officer (CEO), Chief Finance Officer (CFO), Chief Operating Officer (COO), Chief Technology Officer (CTO), Vice Chairman, Vice President, Executive Director, Managing Director, General Manager | 150,000 | - |
| Management level
i.e. Production Manager, Marketing Advisor, Factory Manager, Assistant Managing Director, Assistant Vice President | 75,000 | 50,000 |
| Operations level
i.e. Production Supervisor, Project Coordinator, Data Analyst, Marketing Consultant, Sales Executive | 50,000 | - |
| Scientific or Technological Researcher | 75,000 | 50,000 |
| Engineering position | 75,000 | 50,000 |
| IT Specialist | 75,000 | 50,000 |
| Workstation Operator | 35,000 | - |
For new appointments, the employment agreement stipulating the expatriate’s remuneration must be submitted for verification. For extensions of existing positions, companies are required to provide evidence of actual income through either the annual withholding personal income tax return (P.N.D. 1 Kor) or the monthly withholding income tax return (P.N.D. 1).
Local Remuneration Requirement
Historically, expatriates under the BOI scheme were, in some cases, permitted to receive remuneration from overseas entities. Under the new regime, however, salaries for all BOI-sponsored expatriates must be disbursed through a Thai corporate entity. This requirement applies across all industries and is not limited to manufacturing enterprises.
Implementation Timeline
The Notification introduces a phased implementation schedule as follows:
- For companies with BOI certificates issued after 5 June 2025, the new provisions take effect on 1 October 2025.
- For all BOI-promoted companies, irrespective of the date of issuance of the BOI certificate, the provisions become fully effective on 1 January 2026.
Concluding Words
Companies holding BOI privileges are advised to conduct a thorough review of their internal employment structures and remuneration practices to ensure their alignment with the new criteria.
If you have any queries or need clarifications on the above, please contact our team.
Disclaimer
Rajah & Tann Asia is a network of member firms with local legal practices in Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Our Asian network also includes our regional office in China as well as regional desks focused on Brunei, Japan and South Asia. Member firms are independently constituted and regulated in accordance with relevant local requirements.
The contents of this publication are owned by Rajah & Tann Asia together with each of its member firms and are subject to all relevant protection (including but not limited to copyright protection) under the laws of each of the countries where the member firm operates and, through international treaties, other countries. No part of this publication may be reproduced, licensed, sold, published, transmitted, modified, adapted, publicly displayed, broadcast (including storage in any medium by electronic means whether or not transiently for any purpose save as permitted herein) without the prior written permission of Rajah & Tann Asia or its respective member firms.
Please note also that whilst the information in this publication is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as legal advice or a substitute for specific professional advice for any particular course of action as such information may not suit your specific business and operational requirements. You should seek legal advice for your specific situation. In addition, the information in this publication does not create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on the information in this publication.
