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The BOI Act of 2025 and the provisions of Articles 25 and 26 of the Act of 1977
The new law enacted by the BOI in 2025 imposes a new legal framework for foreign workers. Indeed, Thailand’s investment promotion policy is based on the Investment Promotion Act B.E. 2520, which was adopted to support the Kingdom’s economic development by stimulating foreign investment. This law grants the Board of Investment (hereinafter “BOI”) considerable powers to determine eligibility criteria for economic incentives, grant promotion certificates, and define the conditions of employment of foreign nationals in promoted activities.
Two key articles are central to the regulation of foreign employment:
- Article 25 allows promoted companies to hire foreign workers necessary for their activities.
- Article 26 allows these foreign nationals to remain in Thailand to perform these functions.
In order to implement these provisions, the BOI regularly publishes announcements detailing the criteria for approving positions and the applicable employment conditions. On June 5, 2025, the BOI published a new announcement under number Por. 8/2568, which repeals the previous announcement Por. 3/2567 of August 9, 2024. This new BOI law of 2025 redefines the criteria applicable to positions held by foreigners in promoted activities, tightening certain conditions and providing for targeted sectoral exemptions.
Table of Contents
The new principles and conditions laid down by BOI Law Por.8/2568 of June 5, 2025
The new law enacted by the BOI in 2025 has clearly stated objectives. Its primary aim is to strike a balance between hiring foreign skills and promoting local human resources. It also seeks to promote the transfer of know-how and technology to Thai employees, while imposing stricter controls on the approval of positions that may be filled by foreign nationals. This reform is based on Articles 11, 13, 25, and 26 of the Investment Promotion Act B.E. 2520, as well as BOI Resolution No. 4/2568 dated May 19, 2025.
The text of the new announcement introduces a precise classification of eligible positions. Three main categories of positions are now defined: executive management positions (such as Chief Executive Officer, President, or Managing Director), managerial positions (including Production Manager or Plant Manager), and finally operational positions, which include engineers, analysts, supervisors, and technicians. In addition, certain functions are subject to specific regulations, such as those of researchers, teachers, pilots, and operators employed in BPO or IBPO service centers.
Companies wishing to obtain approval for positions for foreign nationals must meet certain general conditions. They must hold a valid promotion certificate issued by the BOI, comply with all applicable laws and regulations, and meet the specific requirements mentioned in the certificate. In addition, they must be engaged in an activity listed among those promoted by the government agency.
With regard to the approval of positions, several essential rules must be observed. The first of these relates to the minimum proportion of Thai personnel within the company. For manufacturing activities employing more than 100 employees, Thai personnel must represent at least 70% of the total workforce. However, this requirement does not apply to companies with fewer than 100 employees or to companies providing services. Exemptions may nevertheless be requested and are subject to the BOI’s approval on a case-by-case basis.
The duration of the approval for positions varies depending on the nature of the activity concerned. For standard activities, the maximum duration of the authorization is two years. For companies classified as TISO (Trade and Investment Support Office), BPO (Business Process Outsourcing) or IBPO (International Business Process Outsourcing), the approval period is limited to one year. However, structures such as IHQ (International Headquarters), ITC (International Trading Center), IBC (International Business Center), as well as research and development or electronic design activities, may be granted authorizations for up to four years. The same duration applies to experts working in scientific and technological fields.
The requirements for foreign nationals vary depending on the position sought, but must always be met cumulatively. The minimum age requirement is generally set at 22 for technical or operational positions and 27 for executive or management positions. The professional experience required ranges from two to ten years, depending on the case, with a higher requirement for positions that do not correspond to the applicant’s field of study. In addition, a relevant degree in the field of activity is generally required. The level of remuneration must also comply with a minimum wage defined by job category. Thus, minimum salaries range from 35,000 baht to 150,000 baht per month. For specific positions such as researcher, teacher, and pilot, additional professional authorizations must be provided, such as a license from the Thai Teachers’ Council or a certificate issued by the civil aviation authority.
The extension of the authorization to occupy a position is subject to strict conditions. It can only be requested if the company concerned maintains effective operations, complies with the prescribed proportions of Thai personnel, and is able to demonstrate a shortage of skilled local labor. The extension may not in any case exceed the maximum periods specified in the paragraphs relating to the initial approval.
Finally, with regard to the entry into force of the scheme, two dates have been set depending on the validity of the promotion certificate. For projects that received their certificate after the date of publication of the announcement (June 5, 2025), the new provisions will apply from October 1, 2025. For projects already promoted prior to this date, the entry into force is set for January 1, 2026.
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The former conditions and principles applicable under announcement Por.3/2567
Prior to the new law enacted by the BOI in 2025, announcement Por.3/2567 of August 9, 2024, which came into force on October 1, 2024, was mainly intended to clarify the procedures for approving positions for foreign nationals, their actual appointment, and the extension of their term of office in companies benefiting from BOI promotion. This regulation was already based on Articles 11, 13, 25, and 26 of the 1977 law, but it adopted a more flexible framework, aimed primarily at facilitating the procedures for investors.
Several criteria were already taken into account in assessing positions to be filled by foreigners, such as the nature of the activity, the level of technology, and the existence of a shortage of qualified local personnel. However, unlike Por.8/2568, the old regulations did not set mandatory quotas for Thai workers as a proportion of the total workforce. For example, there was no general rule requiring that 70% of the workforce be Thai nationals in manufacturing companies with more than 100 employees.
Furthermore, the qualifications required for different job levels remained relatively standard. For executive-level positions, foreign candidates had to be at least 27 years old and have five years of professional experience, with the exception of the positions of CEO, president, managing director, or chairman, which were exempt from these requirements. For management positions, the same age and experience requirements applied, but in direct relation to the responsibilities of the position. For so-called “operational” positions, a minimum age of 22 was required, combined with a degree in the relevant field and two years of direct experience. In the absence of a relevant degree, five years of experience were required. A special requirement applied to engineers: they had to either hold a university degree in engineering with two years of experience or, in the absence of a degree, have ten years of relevant experience.
With regard to remuneration, the 2024 version did not provide for strict and generalized salary thresholds for all positions. Minimum amounts were only mentioned for certain specific functions, such as IBPO operators, for whom a minimum monthly income of 30,000 baht was required. For digital technology experts working in e-commerce, software, or digital platform development, a threshold of 50,000 baht was required for those with relevant qualifications, or 75,000 baht for those without. Apart from these specific cases, the previous regulations remained relatively flexible on the issue of salaries.
Approval periods were also adjusted according to the type of activity. For traditional manufacturing and service projects, authorization was granted for a maximum period of two years. However, for certain strategic activities, such as regional headquarters (IHQ), international trade centers (ITC), international business centers (IBC), research and development, or electronic design, the period could be extended to four years. For TISO, BPO, and IBPO structures, a one-year limit already applied, foreshadowing what the new law would later reinforce.
Finally, the conditions for extension provided for in announcement Por.3/2567 were similar to the initial criteria: they depended on the business plan, an increase in production capacity, improved standards or the continued lack of local human resources. However, no stricter controls on the proportion of Thai personnel were required at the extension stage.
In conclusion, the 2024 regulations were characterized by a desire for procedural simplification and relative flexibility in the assessment of applications. The BOI left considerable room for interpretation, particularly with regard to the suitability of profiles and the setting of remuneration. The announcement of Por.8/2568 marks a significant break with this approach, introducing quantified, binding and differentiated conditions aimed at radically restructuring the employment policy for foreigners within promoted companies. This shift from an incentive-based model to a rigorous regulatory framework reflects the government’s evolving strategy towards conditional support for the development of local skills.
Practical consequences of the new BOI law of 2025 for foreign companies and investors
- Increased documentation requirements
Companies must provide more precise evidence from the outset: contracts, diplomas, letters of appointment, etc. The approval process is becoming more technical, requiring the use of specialized legal advice.
- Strategic recruitment planning
The recruitment of foreign personnel must be planned in advance. It is now essential to structure teams to comply with the required proportions and to prepare renewal applications within the specified time limits.
- Advantages for high value-added projects
Projects in the technology and science sectors and IBCs/IHQs benefit from longer approval periods. This allows for greater stability in management and technical teams.
- New constraints for standard activities
Traditional production or generic service projects are subject to stricter rules. It will be more difficult for them to justify the use of foreign skills.
- Limited flexibility for renewals
Job renewals are strictly conditional on compliance with the original criteria. Any breach or deviation from the staff ratio may result in refusal.
- Indirect effects on visas and work permits
Approval times determine the validity of visas and work permits. Companies will also need to anticipate departures, replacements, or restructuring.
Conclusion
This new BOI law of 2025 represents a significant change in the policy governing the employment of foreign nationals in Thailand. While it imposes additional obligations on promoted companies, it reflects the government’s clear desire to promote local employment, ensure the transfer of skills, and strengthen the integration of foreign projects into the national economy.
FAQ
All companies with a promotion certificate issued by the BOI are affected by the new announcement Por.8/2568, whether they are manufacturing projects, services, or specialized centers such as IHQs, ITCs, IBCs, TISOs, BPOs, or IBPOs. Requirements vary depending on the type of activity and the date of issue of the certificate.
The new announcement introduces quotas for Thai workers, stricter requirements in terms of qualifications, age, and professional experience for foreign nationals, as well as minimum wage ceilings by job type. It also tightens the conditions for renewal and further limits the duration of job approvals.
Eligible positions are now grouped into three categories: executive management (CEO, president, etc.), management (production manager, plant manager, etc.), and operational positions (engineers, analysts, supervisors, technicians). Certain functions such as researchers, teachers, and pilots are subject to specific rules.
Yes, exemptions are possible, particularly for companies with fewer than 100 employees or for service activities. However, these exemptions are granted on a case-by-case basis by the BOI and require a solid case justifying the use of foreign labor.
Yes. Unlike the previous regulations, announcement Por.8/2568 imposes minimum salary thresholds according to job category: 35,000 to 150,000 baht per month. Specific thresholds also apply to certain regulated professions such as pilots and teachers.
Failure to comply with the 70% Thai staff quota for manufacturing companies with more than 100 employees may result in the refusal of approval or renewal of positions held by foreign nationals. This may also affect the granting or renewal of visas and work permits.
No. Any change of position, even within the same promoted company, must be subject to a new application for approval from the BOI. This includes internal promotions, changes in title, or substantial changes in responsibilities.
For projects promoted after June 5, 2025, the new rules will apply from October 1, 2025. For projects with a certificate issued before that date, the effective date is January 1, 2026.