Employee Welfare Fund 2025

Thailand Employee Welfare Fund 2025: New Labor Security Law Takes Effect

Thailand employee welfare fund 2025 will officially take effect on 1 October 2026 after a one-year delay approved by the Cabinet. This new law requires employers with 10 or more employees to contribute to the fund together with their staff. Both employer and employee will pay 0.25% of wages during the initial phase (2025–2030). The fund is designed to provide financial security in cases of job termination, retirement, or death, ensuring greater stability and protection for the Thai workforce.

The law was approved by the Cabinet on 5 November 2024, and is set to enhance employee protection nationwide. From 1 October 2025 to 30 September 2030, contributions will be collected at 0.25%. Thereafter, from October 2030 onwards, the rate will increase to 0.50% of wages, with employers and employees sharing the cost equally.

 

Who Must Contribute to the Thailand Employee Welfare Fund?

 

The Employee Welfare Fund aims to serve as a social safety net for Thai workers, ensuring financial stability when they leave employment. It covers:

    • Voluntary resignation

    • Employer termination or non-renewal of contract

    • Retirement

    • Death (funds are paid to designated beneficiaries or close family members)

This system reduces financial hardship, encourages savings discipline, and protects families during unexpected events.

 

Key Rules for Employers

 

    1. Mandatory coverage: Businesses with 10+ employees that do not already have a provident fund must register their staff with the Welfare Fund.

    1. Voluntary participation: Businesses exempted under law (e.g., non-profit foundations, associations, or NGOs not engaging in economic profit-making) may still allow employees to join with employer consent.

    1. Monthly contributions: Employers must deduct employees’ contributions each pay cycle, match the amount, and submit the total to the fund by the 15th of the following month.

    1. Calculation basis: Contributions are based on wages, including commissions, regular allowances, and holiday pay.

    1. Late payments: Employers failing to remit contributions on time must pay an additional 5% per month on the outstanding amount.

    1. Employee benefits: Upon resignation, termination, retirement, or death, employees (or beneficiaries) will receive their accumulated contributions, employer’s matching contributions, and interest.

    1. Penalties: Employers who fail to register, submit employee lists, or provide accurate information may face fines up to THB 10,000 and/or imprisonment of up to 6 months.

 

Who Is Exempt?

 

Certain businesses are exempt, such as non-profit organizations specified under the Labor Protection Act B.E. 2541 (1998), including foundations, associations, and other entities not seeking profit.

 

What This Means for Employers and Employees

 

For employees, the Welfare Fund ensures they will have financial support after leaving work, during retirement, or for their family in case of death.

For employers, this law introduces an additional compliance obligation, similar to social security and tax filings. Companies must prepare payroll systems to deduct and remit contributions on time to avoid penalties.

 

References (in Thai): 

 

  • Royal Decree Prescribing the Commencement Period for the Collection of Contributions to the Employee Welfare Fund, B.E. 2567 (2024). Retrieved from The Royal Thai Government Gazette.  
  • Ministerial Regulations Specifying the Contribution Rates for the Employee Welfare Fund, B.E. 2567 (2024). From The Royal Thai Government Gazette.

     

    August 29, 2025 Update from Cabinet

     

    Thailand employee welfare fund will be effective delay to year 2026, was confirmed by the Cabinet on August 26, 2025. The implementation of the fund and associated regulations has been postponed by one year to ease financial pressure on employers and employees.

    What the Cabinet Decided

    The Cabinet approved three new draft regulations related to the Employee Welfare Fund:

    1. Postponed Start Date (Royal Decree)

      • The original plan to begin collecting contributions from 1 October 2025 has been postponed to 1 October 2026.

    2. Delayed Contribution Rates (Ministerial Regulation)

      • Correspondingly, the regulation setting contribution rates is also delayed, now becoming effective from 1 October 2026.

    3. Delayed Implementation of Assistance Criteria (Ministerial Regulation)

      • The regulation on eligibility criteria and assistance procedures for employees leaving work or upon death will likewise take effect 1 October 2026.

    Key Highlights

    • Previously, three legal instruments, Royal Decree, Ministerial Regulation on rates, and Ministerial Regulation on relief procedures, were set to start from 1 October 2025.

    • Now, all have been rescheduled to 1 October 2026 to maintain consistency.

    • This postponement aligns with economic challenges, including uncertainty in global trade, rising wages, and regional tensions affecting businesses and workers.

    • Contribution rates remain unchanged:

      • 0.25% from October 2026 to September 2031

      • 0.50% from October 2031 onward

      • The temporary lower rate is intended to reduce financial strain during the early years of implementation.

    Why This Matters for Employers

    • Employers now have an extra year to prepare, updating payroll systems, communications, and budgeting for contributions.

    • Employers with fewer than 10 employees or those already offering a comparable welfare fund remain exempt.

    • Coordination between HR, finance, and legal teams is crucial to ensure seamless compliance by October 2026.

    Conclusion:
    This delay underscores the Thai government’s responsiveness to economic difficulties by easing the timeline for compliance. Businesses should use this window wisely to be fully ready when the new implementation kicks in.

    Reference: https://www.thaigov.go.th/news/contents/details/100165