On December 27, 2024, a new minimum daily wage rate in Thailand was published in the Government Gazette, taking effect on January 1, 2025. With these changes, the minimum daily wage in 2025 ranges from THB 337 to THB 400, up from the previous THB 330 to THB 370, depending on the province. For most provinces, these rates reflect an increase of THB 7 per day, except for the following provinces and districts, which have increases of THB 9–55 per day: Bangkok Chon Buri Hat Yai District in Songkhla Ko Samui District in Surat Thani Mueang Chiang Mai District in Chiang Mai Nakhon Pathom Nonthaburi Pathum Thani Phuket Rayong Samut Prakan Samut Sakhon The full table of minimum daily wage rates is below. For more details on the new minimum wages, or any aspect of labor and employment in Thailand, please contact Pimvimol (June) Vipamaneerut at [email protected], Ketnut Pukahuta at [email protected], Dusita Khanijou at [email protected], or Chomanut Arif at [email protected].

Thailand has issued a series of regulations implementing the Employee Welfare Fund, which was established under the Labour Protection Act B.E. 2541 (1998) (LPA) but had remained unimplemented since the law’s enactment. The Employee Welfare Fund provides financial support to employees in cases such as termination of employment, death, and other circumstances as specified by the Employee Welfare Fund Committee. Under the LPA, employers with more than ten employees are required to register their employees with the Employee Welfare Fund if they do not offer employees a provident fund or comparable assistance for employment termination or death. With the new regulations detailed below, employers are now able to comply fully with this requirement. Implementation Timeline and Details On November 15, 2024, the Royal Decree Determining the Period for Starting the Collection of Savings and Contributions to the Employee Welfare Fund was officially enacted and published in the Government Gazette. According to this royal decree, contributions to the Employee Welfare Fund will commence on October 1, 2025. Two ministerial decrees followed on November 22, 2024—one setting the withholding and contribution rates, and the other outlining minimum levels of financial assistance due in cases of employment termination or death. The Ministerial Notification Specifying the Rate of Savings and Contributions stipulates the required rates for contributions to the Employee Welfare Fund and establishes a five-year initial period with reduced contribution rates. From October 1, 2025, to September 30, 2030, employers and employees are each required to contribute 0.25% of wages to the Employee Welfare Fund. Starting October 1, 2030, employers and employees will each be required to contribute 0.5% of wages. The Ministerial Notification Specifying Criteria and Procedures for Employers to Provide Assistance in Cases of Employment Termination or Death establishes the guidelines employers must follow when offering financial assistance to employees

With intellectual property playing an ever-increasing role in economic development, the need to harness, promote, and protect ASEAN innovation remains urgent as integration progresses. Among its objectives, the ASEAN Economic Community aims to transform the region into a hub of innovation and competitiveness and ensure that the region remains an active participant in the international IP community. With ASEAN member states increasing IP generation and further committing to global IP regimes, the region is increasingly looking toward sophisticated IP ownership and holding structures. IP Holding Companies ASEAN-based companies continue to centralize ownership of their IP assets in offshore holding and licensing vehicles—an approach multinational companies headquartered elsewhere have been using for a number of years. IP-intensive companies look to locate their IP portfolios in low-tax jurisdictions with strong IP registration and protection laws. The company then licenses the IP to operating companies in the group or to third-party licensees, franchisees, agents, distributors, and other partners in return for royalties or license fees. These special-purpose vehicles are typically referred to as IP holding companies. IP holding companies are popular because they can help corporations minimize tax, gain tax benefits or concessions, protect IP from bankruptcy or other claims against the parent company, and focus management attention on the IP portfolio as an income generator. Tax and IP Holding Companies Tax is the primary reason most companies park their IP in separate IP holding vehicles. Sometimes, companies choose to establish their IP holding company in a no-tax, low-tax, or preferred-tax jurisdiction close to their home country. The selected jurisdiction should also be a country with a large and well-established tax treaty network. Double taxation treaties are key considerations in jurisdiction shopping. If the IP assets need to be pledged as security for future borrowings or if they are to be included

Litigation is usually the last resort in resolving disputes. Most parties to a dispute try to avoid litigation altogether, fearing that seeking recourse with the courts or arbitration will lead to a disruption in commercial relationships, result in increased legal expenses, and generally lengthen the period in which the dispute remains unresolved. While some of these concerns may indeed be legitimate, sometimes litigation is the only means for a party to obtain relief. For parties contemplating such recourse, it is reassuring to know that the Thai court system is generally an accessible, unbiased, and balanced vehicle for the resolution of disputes. Civil Litigation in Thailand aims to introduce some of the fundamentals of Thai civil court procedures and practices. This brief guide covers the main issues concerning civil litigation in Thailand as either a plaintiff or a defendant. Tilleke & Gibbins also publishes a similar guide for Vietnam. The full guide is available through the button below.