The “Employee Welfare Fund” will begin new savings deductions on 1 October 2026, with refunds available upon resignation. Which employee groups must pay and what are the exemption conditions?
This has become a major topic of interest for workers and employers as the Department of Labour Protection and Welfare, Ministry of Labour, prepares to officially start collecting savings and contributions for the “Employee Welfare Fund” from 1 October 2026 onward.
This is not just a minor legal detail but a new financial variable for both salaried employees and business owners. This scoop summarizes all the essential aspects you need to know!
Previously, when employees resigned, they often had no lump sum savings to support them during transitions—unless their company had a Provident Fund (PVD).
The government has therefore designed the Employee Welfare Fund as a social safety net to mandate joint savings between employers and employees from the start of employment. This ensures employees always leave with a financial reserve regardless of resignation, dismissal, retirement, or death.
The law adopts a policy of equal sharing, with employers and employees each paying half, divided into two main phases.
Phase one: 1 Oct 2026 – 30 Sep 2031, contributions at 0.25% of wages from both employee and employer.
Phase two: From 1 Oct 2031 onward, contributions increase to 0.50% of wages each from employee and employer.
For example, an employee earning 20,000 baht monthly will have 50 baht deducted during phase one, and the employer will also contribute 50 baht monthly to the fund.
The fund applies to employers or establishments with a total of 10 or more employees (counting all branches/offices).
Who is exempt?
1. Establishments with fewer than 10 employees.
2. Companies that already provide a Provident Fund (PVD) for employees.
3. Businesses with an existing employee welfare system under ministerial regulations.
4. Certain specific businesses such as private schools (only educational staff), foundations, associations, or general household work.
For employers/HR, system setup is necessary.
1. Register, apply, and submit employee lists via the Department of Labour Protection and Welfare’s e-Service system.
2. Manage payroll deductions for employee savings and pay employer contributions, then remit to the fund as required.
3. Verify accuracy and keep employee entry and exit information up to date.
1. Automatic savings: consent to employer deductions for the fund.
2. Designate beneficiaries by completing the form specifying recipients of death benefits (crucial to prevent inheritance disputes).
3. Monitor savings balances and entitlements regularly.
Employee Welfare Fund Department, Department of Labour Protection and Welfare
Tel: 02 660 2059