(First published: August 26, 2026; Last updated: September 16, 2026)
A significant change to Thailand’s labour law framework is approaching. From 1 October 2026, employee and employer contributions to the Employee Welfare Fund will officially begin under the Labour Protection Act B.E. 2541 (1998). The fund is designed to provide employees with financial protection when employment ends. This article summarizes the key points companies should prepare for, including which businesses are required to participate, how payroll systems should be adjusted, and the potential legal risks of non-compliance.
Which employers are required to participate?
As a general rule, establishments meeting the following conditions are required to participate in and make payments to the Employee Welfare Fund:
- Establishments with 10 or more employees.
- Establishments that have not set up a Provident Fund (PVD), or have not provided employee assistance upon termination of employment in accordance with the standards and conditions prescribed by law.
| HR note: Even if a company already has a Provident Fund (PVD), employees who have not enrolled in the PVD or who are still in their probationary period remain subject to the Employee Welfare Fund requirements under the law. |
Employee and employer contribution rates
The law requires employees and employers to make contributions to the fund based on a percentage of wages. The rates are introduced in two phases to allow businesses time to plan and adjust.
| Applicable period | Employee contribution | Employer contribution | Total contribution |
| Phase 1: 1 Oct 2026 – 30 Sep 2031 | 0.25% of wages | 0.25% of wages | 0.50% |
| Phase 2: From 1 Oct 2031 onward | 0.50% of wages | 0.50% of wages | 1.00% |
Example calculation (Phase 1)
For an employee earning THB 20,000 per month:
- Employee: 0.25% is deducted as the employee contribution = THB 50 per month.
- Employer: 0.25% is contributed by the employer = THB 50 per month (an additional personnel cost of THB 50 per employee per month).
Sources of the fund and employee benefits
In addition to employee and employer contributions, the Employee Welfare Fund includes returns generated from the management of the fund. The fund is overseen by the Employee Welfare Fund Committee together with the Department of Labour Protection and Welfare (DLPW), Ministry of Labour, and is invested in highly secure, low-risk assets in accordance with Ministry of Labour criteria, such as government bonds and deposits with commercial banks.
Employees are entitled to receive payments from the fund under the following main circumstances:
- End of employment: Employees are entitled to receive their employee contributions, employer contributions and investment returns when employment ends, regardless of whether the reason is voluntary resignation, dismissal or expiry of an employment contract.
- Retirement: Employees receive the accumulated amount as a lump sum to support their financial security after retirement.
- Death: Employee and employer contributions, together with the relevant benefits, are paid to the person designated by the employee in Form สกล.5 or to the employee’s legal heirs.
Employer readiness checklist before 1 October 2026
To reduce the risk of HR and accounting errors, companies should prepare across the following workstreams:
- Review and classify employee eligibility (HR): Confirm the total number of employees and distinguish between PVD members and employees who must be covered by the Employee Welfare Fund.
- Update the payroll system (Payroll & Accounting): Update payroll software to calculate employee and employer contributions at 0.25% correctly and prepare the process for remitting payments.
- Plan the personnel cost budget (Finance): Estimate the employer contribution cost in advance and incorporate the additional expense into the annual budget.
- Communicate with employees (Internal Communication): Explain why employee contributions will be deducted, as well as the benefits employees will receive, to build understanding of the new system.
- Monitor government announcements and forms (Compliance): Keep track of official information on registration, required forms, remittance procedures and other implementation details.
1. Registration channels
- Online: Register through the Department of Labour Protection and Welfare (DLPW) electronic services (e-Services). The process requires the 13-digit juristic person registration number / taxpayer identification number, a password for the authorized user, identity verification and completion of the relevant transaction.
- On-site: Submit the registration at Bangkok Labour Protection and Welfare Offices, Areas 1–10, or at the Provincial Labour Protection and Welfare Office responsible for the location of the establishment.
2. Key forms
- Form Sor Gor Lor (สกล.)3: List of employee names and other required details for establishments subject to the mandatory requirements.
- Form Sor Gor Lor (สกล.)3/1: List of employee names for establishments not subject to the mandatory requirements but wishing to enroll their employees in the fund.
- Form Sor Gor Lor (สกล.)3/2: Notification form for changes or corrections to the employee list.
- Form Sor Gor Lor (สกล.)5: Document used to designate the person entitled to receive payments from the Employee Welfare Fund in the event of an employee’s death.
3. How to remit Employee Welfare Fund contributions
Employers must remit both employee and employer contributions to the fund by the 15th day of the following month after the employee contribution has been deducted. Payments must be made through the channels specified by the Department of Labour Protection and Welfare, including:
1. Online (e-Service): Use the Employee Welfare Fund service available through the DLPW e-Service system. The DLPW has established an online system for establishments and has published user manuals and instructional videos for the e-Service.
2. At a government office: Submit the payment through the relevant Bangkok Labour Protection and Welfare Office or the Provincial Labour Protection and Welfare Office responsible for the establishment’s location.
Penalties for non-compliance
If an employer fails to remit employee or employer contributions, or does not remit the full amount within the statutory period, the employer may be subject to the following consequences:
- An additional charge of 5% per month on the outstanding employee or employer contributions.
- Administrative orders and legal proceedings: Labour inspectors may issue a written notice requiring the employer to make the correct payment within 30 days. Failure to comply may result in criminal proceedings and fines under labour law.
Conclusion
The Employee Welfare Fund, which takes effect on 1 October 2026, introduces new compliance obligations and additional costs for employers. However, early preparation across HR, Payroll, Finance and Compliance can help reduce legal risk, smooth the budget impact, and reinforce the company’s commitment to sustainable employee welfare.
Frequently Asked Questions
Question 1
Question:
Are Managing Directors / shareholders required to participate in the Employee Welfare Fund?
Answer 1:
If a Managing Director / shareholder acts as a management executive, has authority to manage the company’s business, works independently, has no fixed working days or hours, and is not subject to the company’s direction and control, he or she is not considered an employee and is therefore not required to participate in the Employee Welfare Fund.
Answer 2:
If a Managing Director / shareholder does not work independently and performs duties under the direction and control of the company, he or she is considered an employee and is therefore required to participate in the Employee Welfare Fund.
Question 2
Question:
If an employer has already paid severance pay to an employee and subsequently re-employs an employee who is over 60 years old, is the employee required to participate in the Employee Welfare Fund?
Answer 1:
If the person is re-employed as an employee, the person is subject to the Employee Welfare Fund requirements even if the employment contract is renewed on a year-by-year basis.
Answer 2:
If the person is not employed as an employee but is engaged as an independent consultant, with no fixed working days or hours and without being subject to the company’s rules and regulations, the person is not considered an employee and is therefore not required to participate in the Employee Welfare Fund.
Question 3
Question:
If an employer has a Provident Fund, but some employees do not participate in the Provident Fund, are those employees required to participate in the Employee Welfare Fund?
Answer:
The employer must arrange for employees who do not participate in the Provident Fund to become members of the Employee Welfare Fund.
This is because the purpose of the legislation is to ensure that employees have savings from at least one of the funds when they leave employment.
This applies regardless of whether the employee voluntarily chooses not to join the Provident Fund or the employer’s rules impose conditions that prevent the employee from participating in the Provident Fund.
Question 4
Question:
If an employer stipulates that employees cannot participate in the Provident Fund during their probationary period, are they required to participate in the Employee Welfare Fund?
Answer:
Employees are required to participate in the Employee Welfare Fund during their probationary period.
After successfully completing the probationary period, if an employee voluntarily joins the Provident Fund, the employer may notify the Labour Inspector and stop making contributions and payments to the Employee Welfare Fund.
However, the employee is not entitled to receive the accumulated contributions immediately. The accumulated amount and employer contributions can be received only when the employee leaves employment.
Question 5
Question:
If an employer has a Provident Fund and has enrolled all employees in the Provident Fund, can some employees also choose to participate in the Employee Welfare Fund?
Answer:
Yes. However, the employer’s consent is required in such circumstances.
The employer will then be subject to the obligations under the Employee Welfare Fund legislation as if the business were otherwise subject to the requirements of the legislation.
Question 6
Question:
Are payments made by an employer as rewards, benefits, or incentives subject to contributions to the Employee Welfare Fund?
Answer:
Payments made as welfare benefits, rewards, or incentives are not payments made as compensation for work performed during normal working hours and therefore do not constitute “wages” under the Labour Protection Act.
Examples include:
- Bonuses
- Attendance or diligence allowances
- Housing allowances
- Transportation expenses
- Incentives for achieving sales targets
- Night-shift allowances
- Vehicle rental expenses for executives
Please note that whether a particular payment constitutes “wages” should be assessed based on relevant court decisions and the actual conditions of payment. The name of a payment should not be used as the sole basis for determining its treatment. Payments with the same name may be treated differently depending on their conditions and the underlying facts.
Question 7
Question:
Are overtime pay, holiday work pay, and holiday overtime pay subject to contributions to the Employee Welfare Fund?
Answer:
Overtime pay, holiday work pay, and holiday overtime pay are not payments made as compensation for work performed during normal working hours. Therefore, they do not constitute “wages” under the Labour Protection Act.
Accordingly, these amounts are not included in the calculation of contributions to the Employee Welfare Fund.
Question 8
Question:
Is there a minimum or maximum amount for employee savings contributions and employer contributions to the Employee Welfare Fund?
Answer:
There is no minimum or maximum limit.
Therefore, regardless of how high an employee’s wages are, the employer must use the employee’s wages as the basis for calculating the amount to be contributed to the Employee Welfare Fund.
Question 9
Question:
If an employee takes 120 days of maternity leave and the employer pays wages for 60 days, is the employer required to make Employee Welfare Fund contributions for the remaining period exceeding 60 days?
Answer:
Once the employer has paid wages for 60 days of maternity leave, the employee is not entitled to receive wages for the remaining period exceeding 60 days.
Therefore, there are no wages for that period to be included in the calculation of Employee Welfare Fund contributions, and the employer is not required to make contributions to the Fund for that period.
Question 10
Question:
If an employee is terminated because they do not pass the probationary period, can they receive their accumulated contributions and employer contributions from the Employee Welfare Fund?
Answer:
Employees who leave employment for any reason may apply to receive payments from the Employee Welfare Fund.
This includes cases such as:
- Resignation
- Retirement
- Termination, whether or not involving serious misconduct
- Failure to pass the probationary period
- Expiration of an employment contract
- Voluntary separation under an employer’s voluntary retirement or separation program
The employee may submit an application to the local Department of Labour Protection and Welfare office in the area where the employer makes contributions to the Fund.
After the Labour Inspector has verified the relevant evidence and confirmed that the requirements are satisfied, the Department will pay the employee or other person legally entitled to receive the payment the accumulated contributions, employer contributions, and investment returns in accordance with the law.
Question 11
Question:
Can an employee claim a personal income tax deduction for the amount contributed by the employee to the Employee Welfare Fund?
Answer:
At present, employee contributions cannot be claimed as a personal income tax deduction.
However, the Department of Labour Protection and Welfare has proposed to the Ministry of Finance that the relevant legislation be considered for amendment so that employee contributions may qualify for a tax deduction or exemption for income tax purposes.
Further announcements and potential amendments to the relevant legislation should be monitored.
Question 12
Question:
If an employee changes jobs, can the employee keep their accumulated contributions in the Employee Welfare Fund?
Answer:
Yes, this is possible.
Question 13
Question:
If an employee leaves their job, how can they apply to receive payment from the Employee Welfare Fund?
Answer:
Employees can apply for payment from the Employee Welfare Fund themselves through the EWFUND or EWF system on the website of the Department of Labour Protection and Welfare, using Form Sor Gor Lor 6 (สกล.6).
For system registration, employees can choose to register and verify their identity through the THAID application, or register through the regular process via the EWFUND or EWF system, following the steps specified by the system.
Question 14
Question:
How many contribution payments must an employee have made to the Employee Welfare Fund before becoming eligible to receive payment upon leaving employment?
Answer:
The Labour Protection Act B.E. 2541 (1998) does not specify a minimum period or minimum number of contribution payments that an employee must make before becoming eligible to receive payment from the fund.
Therefore, when an employee leaves employment, regardless of the number of contribution payments previously made, they are entitled to apply to receive their accumulated contributions, employer contributions, and investment returns from the Employee Welfare Fund, subject to the criteria and conditions prescribed by law.
Question 15
Question:
If a foreign employee or foreign worker ends their employment and needs to return to their home country, can they authorize another person to apply for payment from the Employee Welfare Fund on their behalf?
Answer:
Yes. They can authorize another person to apply for payment from the Employee Welfare Fund on their behalf. A power of attorney and supporting documents must be prepared in accordance with the requirements prescribed by the Department of Labour Protection and Welfare.
Question 16
Question:
If an employee resigns from their previous company and starts working for a new company, can they receive payment from the Employee Welfare Fund?
Answer:
Yes. The employee can receive the amount from the Employee Welfare Fund attributable to their employment with the previous employer. Since resignation constitutes the termination of employment, the employee can apply to receive their accumulated contributions, employer contributions, and investment returns according to their entitlement. The payment process will be carried out in accordance with the criteria and procedures prescribed by the fund.
For employment with the new company, if the employee meets the criteria for mandatory fund membership, the new employer is responsible for registering the employee as a fund member and submitting the employee and employer contributions in accordance with the law.
Question 17
Question:
Can an employee withdraw from the Employee Welfare Fund while continuing to work for the company?
Answer:
In general, an employee cannot withdraw from the fund independently while remaining employed. If the employee still meets the criteria for mandatory fund membership, the employer remains responsible for submitting the employee and employer contributions as required by law.
Membership in the fund and related entitlements will generally end when employment ends, or when the employee becomes a member of a Provident Fund in accordance with the conditions prescribed by law and the relevant criteria.
Question 18
Question:
What happens if an employee or eligible person does not come to collect payment that has already been approved?
Answer:
If an employee or eligible person entitled to payment from the Fund does not come to collect the payment after it has been approved, the officer will notify the eligible person no less than twice a year. If the eligible person does not come to collect the payment for a period exceeding 10 years, such funds may be transferred into the Fund’s income in accordance with the criteria prescribed by law. Nevertheless, the eligible person may still submit a request to claim the payment at a later date, provided that this is done in accordance with the prescribed rules and conditions.
References
1. Labour Protection Act B.E. 2541 (1998), as amended (Chapter 13: Employee Welfare Fund, Sections 126–138).
2. Royal Decree prescribing the commencement of collection of employee and employer contributions to the Employee Welfare Fund, B.E. 2567 (2024).
3. Announcements and implementation guidelines issued by the Department of Labour Protection and Welfare, Ministry of Labour.
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