Summary. Starting 1 October 2025, Thailand will implement the Employee Welfare Fund (EWF), established under the Labor Protection Act B.E. 2541. This fund provides financial protection for workers in cases of termination or death. Employers with 10+ employees must register for the Thailand Employee Welfare Fund unless they offer equivalent benefits through existing provident funds. Both employers and employees will initially contribute 0.25% of wages (increasing to 0.5% in 2030), with employers responsible for withholding and submitting payments by the 15th of the following month. Non-compliance penalties include a 5% monthly surcharge on unpaid amounts, potential imprisonment up to six months, or fines up to THB 10,000. Employers should stay informed about regulations, assess existing benefits, prepare for registration, budget for contributions, and communicate transparently with employees to ensure smooth implementation.
Starting 1 October 2025, the Thailand Employee Welfare Fund will be introduced, marking a significant milestone in the country’s labor protection framework. Employees will benefit from this safety net that protects them during unexpected situations like losing their job or experiencing personal hardship.
If you're an HR manager or an employer looking to navigate these new regulations regarding the Employee Welfare Fund Thailand, here's everything you need to know.
What is the Thailand Employee Welfare Fund?
The Thailand Employee Welfare Fund (EWF) is a financial protection system that assists workers in the event of termination or death. Established by royal decree on 13 November 2024, under the Labor Protection Act B.E. 2541 (1998), the EMF will officially be in effect on 1 October 2025 onwards.
From October 2025 until September 2030, employees and employers must pay 0.25% of employees’ wages before the rate increases to 0.5% starting in September 2030.
Who is required to register for the Thailand Employee Welfare Fund?
Employers operating with 10 or more employees are required to register for the EWF Thailand. However, there are exemptions for employers who already provide similar benefits through a provident fund or other employee welfare programs that meet or exceed the standards set by the Labor Protection Act B.E. 2541.
To qualify for an exemption, the employer’s provident fund or welfare plan must include contributions from both the employer and employee, typically ranging from 2% to 15% of the employee’s wages.
What do employers need to know about Thai EWF?
As an employer, understanding your responsibilities under the Thailand Employee Welfare Fund is crucial to ensuring compliance with the Labor Protection Act B.E. 2541. Here’s an overview of what you should know as an employer:
Registration
If you have more than ten employees, you’re expected to register with the Thai EWF unless you have a provident fund or comparable benefits. This exemption allows employers who already provide substantial employee benefits to avoid duplicating efforts.
While specific details about an online portal for registration are not yet widely available, you can get all details on the official government websites or contact the Department of Labor Protection and Welfare for the registration procedures.
Fund management
Thailand Employee Welfare Fund is managed under the Labor Protection Act B.E. 2541. The Department of Labor Protection and Welfare and their board of directors supervise the implementation process to maintain compliance from all organizations and business owners.
The board consists of Labor Ministry and Finance Ministry representatives and members from the Bank of Thailand with employers' and employees' representatives. There are also penalties for non-compliance with the Thai EMF, which we cover further below.
Contributions
Both employers and employees contribute 0.25% of wages from 1 October 2025 to 30 September 2030, increasing to 0.5% thereafter. As an employer, you must withhold employee contributions and submit both contributions by the 15th of the following month.
The Thai EWF contribution rates are as per below:
Employers are also responsible for deducting employee contributions, matching those amounts in your payroll, and submitting both the employee and employer contributions to the Thailand EWF by the deadline.
Impacts on existing provident fund
With the introduction of the Thailand Employee Welfare Fund, existing provident funds in Thailand may be impacted. As mentioned above, employers are exempted from the EWF as long as they ensure that the employee provident fund contributions are between 2% and 15% of employee wages.
However, it is important to note that the Thailand Employee Welfare Fund is designed to provide financial security for employees in critical situations, so even if your company is exempt due to an existing provident fund, it’s important to review your plans to ensure compliance with the Labor Protection Act B.E. 2541.
By regularly reviewing your plans, you can effectively assess whether participating in the Thai EWF is beneficial, even if exempt. The Employee Welfare Fund Thailand offers lower contribution rates compared to typical provident funds, which may be an attractive option for some employers.
Penalties for noncompliance
Employers who fail to comply with the Thai Employee Welfare Fund regulations face substantial penalties. Non-payment of contributions results in a 5% surcharge per month on the unpaid amounts.
Additionally, employers may face imprisonment for up to six months or a fine of up to THB 10,000 if they fail to submit required forms, notify changes, or provide false information.
What are the next steps for employers managing Thailand EWF?
Now that you know important information about the Thailand Employee Welfare Fund, here’s what you should do as an employer:
1. Stay informed
The first step is to stay informed about news and updates regarding the new regulation. As mentioned, there will be a transition period from October 2025 to September 2030. Keep this in mind and ensure that your company is prepared for changes in contribution rates during this time to avoid penalties.
2. Assess existing benefits
Examine your current benefits and compensation packages, like provident fund provisions for employees. Employees who do not satisfy the exemption requirements must prepare for Thailand Employee Welfare Fund registration. You need to maintain proper employee records combined with full compliance with all legal requirements.
3. Prepare for registration
Preparing for registration with the Thai EWF requires careful planning. Start by ensuring that all employee data are accurate and up-to-date, including names, employment contracts, and salary details. Employers must submit a form with employee information to the Department of Labor Protection and Welfare to check if they meet the exemption criteria.
If you already offer a provident fund or similar benefits, review them to confirm they meet the exemption requirements mentioned above. However, even if some employees are not covered by these benefits (e.g. probationary employees), you must still register them with the Thailand Employee Welfare Fund.
4. Budget for contributions
As you know, the contribution rates will increase over the next 5 years, so it’s important to budget for both current and future rates.
For example,
Employee earns THB 40,000 per month
Contribution rate = THB 40,000 * 0.25% = THB 100 each
Total contribution for both employer and employee = THB 100 x 2 = THB 200
Starting October 2030, the contribution rate will be 0.5%:
Contribution rate = THB 40,000 * 0.5% = THB 200
Total contribution for both employer and employee = THB 200 x 2 = THB 400
Be sure to factor these increasing costs into your financial planning to ensure smooth compliance with the Thailand Employee Welfare Fund regulations.
5. Communicate with employees
Transparency is key for building a positive workplace culture. You are expected to explain the Thailand Employee Welfare Fund to your employees, covering how it works, the benefits it offers, and how contributions will be managed. This will help build trust and ensure a smooth implementation across your organization. Additionally, keep employees informed about the status of their registrations and contributions to maintain clear communication.
Prepare Your Business for Thailand EWF with Omni
Understanding and managing the newly introduced Thailand Employee Welfare Fund is essential for both employers and employees. Employers must comply with the regulations and ensure that both parties are contributing to the mandatory Thai EWF, while employees rely on these contributions for financial protection. That’s why it’s important to have automated HR tools on your side to streamline the process and ensure compliance.
Omni’s all-in-one HR solution helps streamline payroll processes and free of manual error to reduce the administrative burden on HR. With secure and centralized employee records, HR teams can easily store, update, and communicate employee information across departments and with employees.
Omni offers a comprehensive payroll solution tailored to Thailand's specific requirements. With features like support for Thai baht, automated tax calculations, and social security contributions, Omni can help HR teams simplify their Thai Provident Fund contributions and ensure compliance with ease. Book a product tour with our team today and learn more!
