On 18 June 2024, Thailand’s Senate passed the act amending the Civil and Commercial Code (“Marriage Equality Law”), taking a historic step towards marriage equality and making Thailand the first country in Southeast Asia to legally recognize same-sex marriage. The new law is currently awaiting royal endorsement and will come into force 120 days after publication in the Royal Gazette. Companies should start reconsidering their HR rules and policies in light of the Marriage Equality Law.

The personal income tax exemption amount on severance pay for terminated employees is now increased, following the publishing of the relevant Ministerial Regulations in the Royal Gazette. On 26 June 2024, the Ministerial Regulations, Volume 394 (B.E. 2567), (2024) under the Revenue Code Regarding Revenue Tax Exemption (“Ministerial Regulation”) was published in the Royal Gazette on 17 July 2024 and has already entered into force from that date. As a result, the personal income tax exemption amount on severance pay for terminated employees is now increased to the employee’s last 400 days’ wages or THB 600,000, whichever is less.

The Cabinet has recently approved in principle the Draft Ministerial Regulation under the Revenue Code Regarding Revenue Tax to increase the personal tax exemption amount on severance pay for terminated employees, aligning with the new maximum rate of severance pay. This change is intended to further ease the financial burden on terminated employees.