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Guidelines on the Employee Welfare Fund Before Its Full Implementation in 2026 (Thailand)

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February 2026

Guidelines on the Employee Welfare Fund Before Its Full Implementation in 2026 (Thailand)

Author: Yothin Intaraprasong (Co-author)

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Publisher: Nagashima Ohno & Tsunematsu

Journal / Book: NO&T Thailand Legal Update No.43 (February, 2026)

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*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.

Background

The Employee Welfare Fund (“EWF”) is a statutory fund established under the Department of Labor Protection and Welfare by the Labor Protection Act of 1999 (“LPA”). The aim of the EWF is to provide financial support to employees upon leaving employment, death or other circumstances as specified in the regulations of the Employee Welfare Committee.※1 Despite the enactment of the LPA, the requirements to collect contributions※2 and supplementary contributions※3 and deposit them to the EWF had not been enforced since its establishment in 1999. In November 2024, a Royal Decree was promulgated to initiate the collection of contributions and the submission thereof to the EWF effective from 1 October 2025.※4 However, due to economic uncertainties, such as US trade tariff increases and the adjustment of the domestic national minimum wage, a subsequent Royal Decree postponed the commencement date of the EWF to 1 October 2026 to alleviate the financial burden on employers and employees.※5

In this article, we summarize the key takeaways of the EWF requirements, highlighting important legal and practical considerations to provide a better understanding thereof before its full implementation in 2026.

Key considerations

(i) Scope of application

The EWF generally requires an employer with ten (10) or more employees to register all of them as members.※6 The scope of “employees” who fall under the EWF is defined under the LPA※7 to include all categories of employees regardless of the employment type, such as full-time, probationary, part-time, daily, hourly and fixed-term employees and certain subcontractor workers considered to be employees by law. On the other hand, employers with fewer than ten (10) employees are not subject to the EWF requirements.

(ii) Exemptions to the EWF

Although employers with ten (10) or more employees are generally subject to the EWF, the following categories are exempt:

Employers that provide a provident fund under the law on provident funds; or
Employers that provide benefits to employees in the event of termination or death according to the Ministerial Regulations Prescribing Rules and Procedures for the Provision of Welfare to Employees in the Event of Termination of Employment or Death of 2024.※8

It is important to note that, according to the Department of Labor Protection and Welfare, employers with more than ten (10) employees who have established 1) or 2) above must still register employees who are not registered under those schemes and make contributions to the EWF for such employees.※9

Additionally, the exemption also extends to certain businesses that are exempt under specific laws and regulations, such as fishing operations, domestic work not conducted as part of a business, work not undertaken for economic profit, private schools (limited to directors and teachers) and private higher education institutions.※10

Please note that any employee working at exempt businesses may voluntarily apply to be a member of the EWF with the employer’s consent.※11

(iii) Employer and employee duties

Employees of businesses with more than ten (10) employees shall be members of the EWF.
Once the employee threshold is met, the employer shall register its employees by submitting a list of their names in accordance with the format, criteria and procedures prescribed by the EWF Committee.※12
Upon obtaining EWF membership, the employee shall pay the contributions via wage deductions by the employer. The employer will then remit these contributions, along with their own portion, to the competent Labor Protection and Welfare Office※13 by 15th day of the following month according to the Employee Welfare Fund Committee Regulations on the Remittance of Savings, Contributions and Additional Contributions to the Employee Welfare Fund of 2024 (“2024 EWF Committee Regulations”).※14

In this regard, the combined contributions from the employer and the employee shall not exceed 5% of the employee’s wages as prescribed by the Ministerial Regulations Stipulating the Collection of Contributions and Supplementary Contributions to the Employee Welfare Fund of 2025 (“2025 EWF Ministerial Regulation”):※15

Contribution Period	Employer Contribution Rate (% of employee’s wages)	Employee Saving Rate (% of employee’s wages)
From 1 October 2026 to 30 September 2031	0.25%	0.25%
From 1 October 2031 onwards	0.50%	0.50%

Note: There is no maximum wage ceiling for deductions, and while the contribution method will be confirmed at a later stage, electronic filing and payment systems are anticipated.

(iv) Right of employees to receive payments from the EWF

The employee is entitled to receive the contributions, supplementary contributions and yield from the EWF in the following cases:

The employee or eligible person shall be entitled to the full payment upon resignation or upon termination of employment by the employer regardless of whether such termination is for fault attributable to the employee.※16
In the event of the employee’s death, the beneficiary designated by the employee or specified under the LPA will be entitled to such money. However, if the employee did not designate a beneficiary or the designated person died, the funds will be distributed equally among the surviving children, spouse and parents of the deceased employee.※17
Other cases as determined by the EWF Committee, including cases where the employer terminated the employment without severance pay or pays only wages, overtime pay, holiday pay, overtime pay on holidays, etc.※18

(v) Penalties

Employers who fail to make contributions within the prescribed period shall be subject to a surcharge of five percent (5%) per month calculated from the unremitted or outstanding contributions and/or supplementary contributions.※19 Failure to submit a list of employees or provide notice of changes or providing false information can result in a fine of up to THB 10,000 or imprisonment of up to six (6) months or both.※20 For juristic persons, if the misconduct is due to an order or act of a director, manager or any responsible person or if such individual fails to act as required, thereby giving rise to the juristic person’s violation, that individual will be held liable.※21

Next step

The EWF aims to enhance employee protection standards, encourage savings and provide financial security upon employment cessation or death. It also helps strengthen employer public reputations and incentivizes long-term employee retention. However, certain legal and practical aspects remain unclear, such as the tax-deductibility of employee contributions. Currently, the matter remains pending, and the issuance of subordinate legislation under the EWF is anticipated. However, such matter is likely to be implemented similarly to other welfare funds in place. As a public hearing was held in early 2025 on LPA amendments concerning the EWF and as the details thereof are pending, it is anticipated that the amendments will be finalized and promulgated soon.

Endnotes

*1
Section 126 of the LPA.

*2
The term “contributions” means money paid by an employee to the EWF (Section 5 of the LPA).

*3
The term “supplementary contributions” means money paid by an employer to the EWF as a supplement in favor of an employee (Section 5 of the LPA).

*4
The Royal Decree that determined the effective date for the collection of savings and contributions to the EWF of 2024.

*5
The Royal Decree that determined the effective date for the collection of savings and contributions to the Employee Welfare Fund of 2025.

*6
Section 130 of the LPA.

*7
Section 5 of the LPA.

*8
Section 130, paragraph 2 of the LPA.

*9
Ruling of the Legal Division of the Department of Labor Protection and Welfare No. Ror Ngor 0505/1772 dated 20 June 2025.

*10
The Higher Education Act of 2019, the Ministerial Regulations on Labor Protection in Sea Fishing Work of 2022, the Ministerial Regulations of 1998 issued under the LPA (as amended) and the Employee Welfare Fund Committee Regulations on the Admission of Employees Not Governed by the Labor Protection Act of 1998 to Membership in the Employee Welfare Fund of 2024.

*11
Clause 3 of the Employee Welfare Fund Committee Regulations on the Admission of Employees Not Governed by the Labor Protection Act of 1998 to Membership in the Employee Welfare Fund of 2024

*12
Section 130, paragraph 5 of the LPA.

*13
Clause 4 of the 2024 EWF Committee Regulations.

*14
Clause 5 of the 2024 EWF Committee Regulations.

*15
Clause 3 of the 2025 EWF Ministerial Regulations.

*16
Section 133, paragraph 1 of the LPA.

*17
Section 133, paragraph 2 of the LPA.

*18
Clause 7 of the Employee Welfare Fund Committee Regulations on the Payment of Financial Assistance, Rates of Payment and Period of Payment of 2017, as amended.

*19
Clause 7 of the 2024 EWF Committee Regulations.

*20
Section 156 of the LPA.

*21
Section 158 of the LPA.

February 20, 2026

This newsletter is given as general information for reference purposes only and therefore does not constitute our firm’s legal advice. Any opinion stated in this newsletter is a personal view of the author(s) and not our firm’s official view. For any specific matter or legal issue, please do not rely on this newsletter but make sure to consult a legal adviser. We would be delighted to answer your questions, if any.

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Yothin Intaraprasong

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