In brief
On 1 October 2026, the collection of contributions to the Employee Welfare Fund ("Fund") will commence following the introduction of the implementing legislation in 2024. Employers with 10 or more employees will generally be required to register themselves and their employees as members of the Fund.
In more detail
The Fund was established under the Labour Protection Act (LPA) to provide financial security for employees in the event of termination of employment or death. The Fund consists of contributions from both employers and employees. Although the Fund has been in place under the LPA for many years, the collection of contributions has not previously commenced due to the absence of implementing legislation. Subsequently, the Royal Decree on the Starting Period of the Collection of Contributions for the Employee Welfare Fund, B.E. 2568 (2025) was issued to give effect to the Fund and require contributions from 1 October 2026. As a result, employers and employees who are subject to the Fund will be required to make contributions from 1 October 2026 onwards.
Who is subject to the Fund?
Any employer with 10 or more employees will be required to participate in the Fund.
Exceptions to the Fund requirement
The following employers are generally exempted from the requirement to participate in the Fund:
- Employers with fewer than 10 employees.
- Employers that have already set up a provident fund for their employees.
- Employers that have already set up a separate employee support programme for employees in the event of termination of employment or death.
- Employers operating businesses that are exempted from the Fund requirements under the LPA, such as certain non-profit organisations.
Contribution rates
Employers and employees who are subject to the Fund will be required to make monthly contributions at the following rates:
- From 1 October 2026 to 30 September 2031, the contribution rate will be 0.25% of the employee's wage.
- From 1 October 2031 onwards, the contribution rate will increase to 0.5% of the employee's wage.
What actions employers need to take
- Review whether the Fund applies to the company and whether any exemption is available. For example, employers that have already set up a provident fund should also consider whether all employees are members of the provident fund and, if not, whether those who do not join the provident fund must be registered with the Fund.
- Register with the Fund via the e-Service system of the Department of Labour Protection and Welfare.
- Prepare and submit the employee list form (SorKorLor. 3) for employees subject to the Fund and other required documents through the e-Service system.
- Put in place procedures to deduct Fund contributions from employees' wages each month.
- Remit both the employer's and employees' contributions to the Fund by the 15th day of the month following the month in which the wage deduction is made.
If you require assistance or have any questions regarding this issue, please contact our Employment team.
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Yada Pudpong and Preeyapa Aksharamat, Associates, have contributed to this legal update.