Thailand has issued a series of regulations implementing the Employee Welfare Fund, which was established under the Labour Protection Act B.E. 2541 (1998) (LPA) but had remained unimplemented since the law’s enactment. The Employee Welfare Fund provides financial support to employees in cases such as termination of employment, death, and other circumstances as specified by the Employee Welfare Fund Committee.

Under the LPA, employers with more than ten employees are required to register their employees with the Employee Welfare Fund if they do not offer employees a provident fund or comparable assistance for employment termination or death. With the new regulations detailed below, employers are now able to comply fully with this requirement.

Implementation Timeline and Details

On November 15, 2024, the Royal Decree Determining the Period for Starting the Collection of Savings and Contributions to the Employee Welfare Fund was officially enacted and published in the Government Gazette. According to this royal decree, contributions to the Employee Welfare Fund will commence on October 1, 2025.

Two ministerial decrees followed on November 22, 2024—one setting the withholding and contribution rates, and the other outlining minimum levels of financial assistance due in cases of employment termination or death.

The Ministerial Notification Specifying the Rate of Savings and Contributions stipulates the required rates for contributions to the Employee Welfare Fund and establishes a five-year initial period with reduced contribution rates. From October 1, 2025, to September 30, 2030, employers and employees are each required to contribute 0.25% of wages to the Employee Welfare Fund. Starting October 1, 2030, employers and employees will each be required to contribute 0.5% of wages.

The Ministerial Notification Specifying Criteria and Procedures for Employers to Provide Assistance in Cases of Employment Termination or Death establishes the guidelines employers must follow when offering financial assistance to employees in the event of termination of employment or death. Employers who comply with these criteria and procedures are exempt from the requirement to register their employees as members of the Employee Welfare Fund.

In addition, the Employee Welfare Fund Committee published the Regulations Concerning Savings, Contributions, and Additional Payments to the Employee Welfare Fund B.E. 2567 (2024) in the Government Gazette on November 23, 2024, to set withholding and contribution procedures. Under the regulations, employers are obligated to withhold employees’ required contributions from their wages and submit these amounts, along with the employer’s contributions, to the Employee Welfare Fund by the 15th of the following month. Noncompliance will subject the employer to a surcharge of 5% per month on the unpaid amounts.

Employers who fail to submit a form listing the employees who are members of the Employee Welfare Fund, fail to notify in writing to request changes or amendments to the information within the stipulated time frame, or provide any false information may be subject to imprisonment for up to six months, a fine of up to THB 10,000 (approx. USD 300), or both.

If the offender is a legal entity and the offense arises from the orders or actions of any individual or from the failure to give orders or perform duties required of the managing director or any person responsible for the operations of the legal entity, that individual will also be subject to the prescribed penalties.

For more information on the Employee Welfare Fund and its accompanying regulations, please contact Chusert Supasitthumrong at [email protected] or Panchaya Rattanaumnuaishai at [email protected].