In-Depth Look at New Law: Full Refund When Leaving Job! Effective 1 Oct 2026, Employee Welfare Fund

On the first day of work, we often worry about passing the probation period.

But few think about the last day of their employment.

The day of resignation, dismissal, contract end, or even an unexpected life event.

The question is, after leaving employment, what will you have left to take home?

This is the origin of the "Employee Welfare Fund," which will soon be enforced. The fund’s concept is simple: employees and employers jointly save money so employees have funds when they leave a job, regardless of the reason for departure.

This fund is not a voluntary benefit but a new law starting 1 Oct 2026. However, many may still not understand what the fund is, how deductions work, or what refunds occur upon leaving. Thairath Money summarizes the details here.

Small monthly deductions, but full refund upon leaving the job.

During the first 5 years (1 Oct 2026 - 30 Sep 2031):

• Employees pay 0.25% of their wages.
• Employers contribute an equal 0.25%.

Simply put, for a 20,000 baht salary,

• the employee pays 50 baht monthly.
• The employer pays an additional 50 baht.

Both parts accumulate in the fund with interest, and on leaving the job, the full amount is refunded.

Employee benefits under the fund.

In the working world, no one remains a "new employee" forever. Eventually, everyone reaches the point of "termination of employment"—whether by resignation to grow elsewhere, retirement, or unexpected dismissal. This law aims to ensure that the last day at work is not when the employee leaves empty-handed. The fund refunds employees in every case of employment termination, including:

• Voluntary resignation,
• Dismissal,
• Termination,
• Retirement,
• Contract expiration,
• Mutual agreement to end the contract.

In other words, even if the employee resigns voluntarily, they will receive their accumulated savings, employer contributions, and interest in full.

If the employee dies, the money does not disappear.

Another important right is that if the employee dies, the accumulated savings plus employer contributions and interest will be paid to the persons previously designated by the employee. If none are designated, the money will go to

• the children,
• spouse,
• father,
• mother,

in equal shares. Thus, the fund is not just employee savings but also a financial safety net for the family.

If the employer defaults on severance pay, the employee has an additional layer of protection.

This distinguishes the fund from ordinary savings funds. If the employee is dismissed and the employer fails to pay legally owed amounts such as:

• Severance pay,
• Unpaid wages,
• Other rightful payments,

the employee can apply for relief from the fund to ease immediate hardship. This acts as an additional "safety net" when employers face problems or fail to comply with the law.

Who must join the Employee Welfare Fund?

The law requires establishments with 10 or more employees to enroll their employees in the fund. Businesses with fewer than 10 employees are not obligated. Additionally, if an establishment already provides a provident fund membership, it is exempt from this fund.

In simple terms,

• Companies with a provident fund and employees already members > no need to join the Employee Welfare Fund.
• Companies without a provident fund > must join the Employee Welfare Fund by law.

However, if a company has a provident fund but some employees are not members, employers should check details with the relevant authorities, as exemption depends on meeting legal welfare provisions.

Key information employees should know.

While some may view the fund as an added burden due to deductions, it actually creates a financial reserve for unexpected job loss. Whether resigning, dismissed, or terminated, the accumulated savings, employer contributions, and interest remain fully owned by the employee. In an era of frequent job changes and uncertain income, this fund may become the first financial cushion for millions of Thai workers.

Source: Department of Labour Protection and Welfare, Thammoniti