The Employee Welfare Fund (the “EWF”) is a mandatory fund established under the Labour Protection Act B.E. 2541 (1998) (the “LPA”) and administered by the Department of Labour Protection and Welfare.
The EWF is aimed at providing financial assistance to employees upon resignation, termination, retirement or death, where such employees are not already covered by a provident fund or an equivalent welfare scheme.
The EWF was originally intended to take effect from 1 October 2025. However, on 15 September 2025, new ministerial regulations were issued to postpone the effective date of the EWF from 1 October 2025 to 1 October 2026.
We have set out in this Memorandum the key summary of the EWF as follows:
1. Applicability
Private-sector employers with 10 or more employees must register and contribute to the EWF, except where they already provide their employees with either (i) a provident fund or (ii) an equivalent welfare scheme with joint employer-employee contributions of at least 2% of wages.
Employees who are excluded from an existing provident fund or equivalent welfare scheme (e.g. during probation) must be enrolled in the EWF.
2. Contributions
Employer and employee contributions are calculated as a percentage of the employee’s actual monthly wages without a wage cap, as follows:
| Period | Contribution from employer |
Contribution from employee |
| 1 October 2026 to 30 September 2031 |
0.25% of wages | 0.25% of wages |
| 1 October 2031 onwards | 0.50% of wages | 0.50% of wages |
3. Payment and remittance
Employers must withhold the employee’s contribution from monthly wages and remit both employer and employee contributions to the EWF no later than the 15th day of the following month.
Late payments will incur a 5% monthly surcharge on the unpaid amount.
4. Benefits
Lump-sum payouts from the EWF will be made to an employee or their beneficiaries upon:
• termination by employer;
• retirement;
• resignation;
• completion of employment contract; or
• death
5. Penalties
Employers’ failure to register for the EWF or notify change of information may result in fines of up to THB 10,000 or imprisonment for up to 6 months or both.
6. Recommended actions for employers
• Review existing welfare arrangements to determine exemption eligibility and identify employees required to be enrolled in the EWF.
• Register with the Department of Labour Protection and Welfare for the EWF, if required.
• Update payroll systems to calculate and remit contributions on time.
• Communicate with employees regarding their rights and obligations under the EWF.
Therefore, you may consider updating your internal policies, payroll processes, and employee communications to ensure compliance with the new EWF requirements and for the benefits of both the employer and the employees.
We would be happy to assist you in reviewing your existing welfare schemes and, where required, proceed with the EWF registration process, update relevant policies and provide practical compliance guidance.
Timblick & Partners Ltd.
By: Sira Panichkul
Date: 15 September 2025