Reader Question: Working in Bangkok, what about salary deductions?
Dear readers,
Last year I did an internship in Bangkok as part of my HBO education. Now I have just graduated and there is a very good chance that I will return to Bangkok (short term) to work for the same company. I was offered a job at the time, but of course I had to graduate first.
Now I was wondering if there are more people with this experience (working and living in Thailand). I'm curious what exactly needs to be arranged and what I need to take into account. I am 26 years old and do not have a Thai partner.
I already know that the salary is low, my colleagues earned 17.000 Baht gross per month, around 25.000 Baht was “promised” against me at the time. I am aware that you “officially” as a foreigner “should” earn 50.000 Baht per month for a work permit, and otherwise you will end up in the corresponding tax bracket anyway.
The salary doesn't matter to me at all, even if it's very low. I will rent a student room in Bangkok and at the time I could also get by with 20.000 Baht per month, with the rent of my studio already being 10.500 Baht, and a student room is much cheaper.
For me it's purely about the experience and the fact that I had a great time there and would love to live in Bangkok. The work experience at the relevant company then also looks very good on my CV.
So I just wonder if after deducting all taxes etc. I will still have enough to live on. I understand that the income tax rate is 20%. Are other things deducted from the salary?
I've already researched a lot, but still can't get it all clear.
So I'd love to hear other people's experiences in this area!
Thanks in advance,
Greetings
Nynke
What is wrong here is health insurance very important you never know what will happen and then you are in serious trouble. A work permit will be arranged by the employer. Maybe Chris can help you he lives and works in Bangkok. Have fun and really take the insurance otherwise the suffering is incalculable.
Thanks for your comment! I really need to follow up on this, thanks for pointing it out! What I understood from my colleagues at the time is that they have health insurance through the company (It is a company with branches all over the world, head office in Germany) and that seemed to be very well arranged. So as soon as I know more about if and when I can start, I will also check with them and meanwhile. find out how I can insure myself for this, if necessary.
You did graduate. But maybe they can help you here or refer you properly.
Nuffic Neso Thailand
15 Soi Ton Son
Lumphini, Pathumwan
Bangkok 10330
Thailand
Tel: +66 (0)2-252 6088 Fax: +66 (0)2-252 6033
https://www.nesothailand.org/home/information-in-english
The contact person is called Agnes Niehof. You know that address: it is the Ned. embassy.
Thank you! I have saved the link so that I can always contact them in case of questions.
I officially earn 55.000 Baht and pay 2675 Baht per month, which is about 5%. Just doable I think for you.
Success!
Thank you for your response Wessel. If you earn 55.000 Baht a month, don't you fall into the 20% scale? But 5% per month is still manageable indeed, that would be 1250 Baht for me. I don't mind living soberly. Just go and rent a cheap student room.
By the way, I had arrived at that 20% because I had read that you must earn at least 50.000 Baht per month as a foreigner. Now this turned out to be only to be able to get an “extension of stay”. I now understand that when you earn less, you also pay less tax, but you would have to cross the border every 3 months.
From what I understood via Thaivisa.com, do I have to apply for a 90-day Non-B visa in NL, in Thailand then my Workpermit through the company, and leave the country with that WP and in Penang, for example, a Multiple entry, 1 year Apply for a non-B visa. And thus leaving the country every 90 days. And the WP would be valid for one year.
Can anyone by chance confirm this?
Have a look here. http://www.rd.go.th/publish/6045.0.html this is the link to the site of the revenue department. Here you can see for yourself how much income tax (pit) you have to pay. With an income of 25000 thb per month, this is 300000 thb on an annual basis. You do not pay tax on the first bracket of 0 to 150000 thb. You pay 150001% tax on the second bracket 300000 to 5 thb. So that becomes 5% over 150000 thb is 7500 thb, per month this becomes 625 thb. This is then without deductions and allowances, so the amount will be even lower. You pay the social security office 1,5% over a maximum amount (I think 20000 thb but I'm not sure).
Just the correct figures for the sso withholding.
Sickness, maternity, disability, death. 1,5%
Child allowance, old age pension. 3%
Unemployment. 0,5%
In total this is 5%. You pay nothing below a monthly salary of 1650 thb. The maximum monthly salary you pay on is 15000 thb.
Thank you for figuring out these amounts! Didn't know that this is still deducted from your salary. As far as I can estimate, it is still manageable with an income of 25.000 Baht.
See the tax rates here: http://thailand.angloinfo.com/money/income-tax/
If you only earn 25.000 per month = 300.000 per year, you pay 7500 baht in tax per year.
As a young person you can get very affordable health insurance (eg A+ Insurances), which is valid in SE Asia. Don't be alarmed by the expensively insured elderly retirees.
You can also take out continuous Dutch travel insurance through JOHO, which costs less than 700 euros. Are you also covered for urgently needed medical treatment.
I'll look into those insurances, thank you! I remember JOHO from my trip years ago (I also had to have travel insurance that allowed me to work)
And then see what the best option is, should I not be insured through the company.
For insurance, also check out uncle insurance (specialist in foreign insurance). Travel insurance is a supplement to health insurance and does not replace it. Contrary to what the name suggests, even a comprehensive travel insurance policy is in most cases no longer valid for more than 8 months. If you spend more than 8 months abroad per year, you must deregister in the Netherlands and you will no longer have health insurance. That is why a comprehensive travel insurance policy is usually valid for no longer than 8 months. Also consider the AOW that you no longer accrue, you can voluntarily pay contributions for this for a period of up to 10 years. The premium depends on your income, just check with the SVB. So calculate whether paying the premium makes sense.
Thanks for the tip, be sure to check whether it makes sense to pay the premium for the state pension. Good tip!
I will also indeed go to Thailand for at least one year (Contracts are for one year and may or may not be extended). So I have to unsubscribe anyway.
Dear Nynke,
In which industry will you work? As far as I know, your employer is required to take out health insurance for you. This costs about 10% of your income but is deductible from other taxes.
Medical instruments. I had indeed understood that my colleagues are insured for medical expenses through the company (and also enough to be able to go to the better hospitals for treatment, so to speak).
But those are details that I haven't talked about yet, I'm now waiting for a response whether and when I could start, hear more about that next week. For example, approval must be obtained from the head office of the Asia region. (Company is all over the world).
I will respond to the other comments later today, there is certainly useful information, but now respond via my telephone and that is a bit more difficult.