Source: Department of Labour Protection and Welfare, Ministry of Labour, Thailand
The contribution was originally scheduled to begin on 1 October 2025 but was postponed for one year. Employers and HR teams should therefore prepare their payroll systems and employee information in advance.
What Is the Employee Welfare Fund?
The Employee Welfare Fund is a contribution-based fund supported by both employees and employers. It aims to provide financial security to employees when their employment ends, subject to the conditions prescribed by law. The fund is different from statutory severance pay, as it operates through regular contributions from both parties.
Contribution Rates
The contribution will initially be collected at 0.25% for both employees and employers.
For example, if an employee earns THB 20,000 per month, the employee contributes THB 50, while the employer contributes another THB 50, making a total of THB 100 per month.
Who Is Required to Participate?
In general, businesses with 10 or more employees that do not qualify for an exemption under the law are required to participate.
Employers may be exempt if they provide qualifying welfare arrangements or have a Provident Fund that meets the conditions specified by law. Certain types of organizations may also be exempt.
What Should Employers and HR Prepare?
To ensure compliance, HR and Payroll teams should:
• Check eligibility – Confirm whether the company is required to participate or qualifies for an exemption.
• Prepare registration – Complete the required registration and ensure employer and employee information is accurate.
• Update Payroll – Configure the system to calculate the 0.25% contribution from 1 October 2026 and prepare for the 0.50% rate from 2031.
• Submit contributions on time – Contributions should be submitted according to the prescribed requirements, including the deadline of the 15th day of the following month.
• Review employee data – Ensure employment and beneficiary information is up to date.
• Communicate with employees – Explain the purpose of the fund and clarify that the salary deduction represents the employee’s contribution, while the employer also contributes.
Key Takeaway for HR
The Employee Welfare Fund is more than an additional payroll deduction. It requires companies to prepare their HR processes, payroll systems, employee data, registration, and internal communication before the new contribution requirements take effect.
Starting preparation early can help organizations reduce payroll errors, avoid late submissions, and ensure compliance with labor regulations.
References:
- Department of Labour Protection and Welfare, Ministry of Labour
- Royal Thai Government Gazette
- Thai PBS
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