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CategoriesPayroll Management
June 26, 2025

Payroll System 4 Critical Reasons Why Global HR Software Fails in Thailand

Payroll Software

International HR software often doesn’t fully support Thailand’s payroll regulations due to a combination of business priorities, complexity, and market size. Here’s why

1. Market Size and Demand

Thailand, while important regionally, is a relatively small market compared to the U.S., EU, or China. Many global HR software providers prioritize

  • Markets with larger enterprise customer bases.
  • Countries with unified or widely-used tax and labor systems.

So, smaller or highly localized markets like Thailand may not get full feature development.

2. Regulatory Complexity and Localization Cost

Thailand has complex, frequently updated payroll rules

  • Progressive income tax (PND1, PND91, etc.).
  • Social Security contributions with unique thresholds.
  • Rules for severance pay, leave, bonuses, etc.

Building and maintaining support for all this requires local legal expertise, coding effort, and ongoing updates, which is expensive if demand is low.

3. Focus on Global Standards

International software typically focuses on:

  • Standardized HR functions (e.g., recruitment, performance, basic payroll).
  • Countries that follow standard reporting or e-filing systems (e.g., EU’s GDPR or U.S. IRS systems)

Thailand’s specific processes (manual e-filing portals, unique forms, etc.) don’t align easily with these systems.

4. Limited Local Partnerships Many global HR tools lack local implementation partners or payroll specialists in Thailand. Without this local support, it’s difficult to roll out accurate features and updates specific to Thai law.

COACH HCM [Payroll System Experts]

With years of experience in providing Human Resource Management (HRM) and Payroll solutions,
COACH HCM has been developed to fully comply with both international standards and Thai labor laws.

In Summary

International HR software often **ignores or under-supports Thai regulations** because:

  1. The cost to localize outweighs potential revenue.
  2. Thai payroll is legally and procedurally complex.
  3. There’s a strong presence of local providers who already serve the market well.