Is Your Business Ready for Thailand’s Employee Welfare Fund in October 2025?

Effective 1 October 2025, Thailand will implement the Employee Welfare Fund (EWF), a mandatory national scheme designed to strengthen employee protections in cases of termination, death, or disappearance. Introduced under a Royal Decree published in the Royal Gazette on 14 November 2024, the EWF complements existing frameworks such as the Social Security Fund and aims to establish a more inclusive safety net for employees across all employment categories.

The EWF ensures that all employees, regardless of contract type, job level, or length of service, are entitled to financial support upon termination. In contrast to provident funds, which may withhold employer contributions in certain cases, the EWF guarantees access to both employer and employee contributions, plus any accrued interest.

The EWF will officially come into effect on 1 October 2025, at which point eligible employers will be required to register and begin making monthly contributions on behalf of their employees. Introduced under a Royal Decree published in the Royal Gazette on 14 November 2024, the scheme aims to supplement existing frameworks such as the Social Security Fund and is expected to establish a more inclusive financial safety net for employees across all employment categories.

All employees, regardless of contract type, job level, or length of service, will be entitled to financial support upon termination. In contrast to provident funds, which may withhold employer contributions in certain cases, the EWF guarantees access to both employer and employee contributions, in addition to any accrued interest. Importantly, the EWF is monitored by the Department of Labour Protection and Welfare, which ensures employer compliance—something not mandated for voluntary schemes like the PVD.

Legal Framework and Scope

The EWF is implemented pursuant to the Labour Protection Act B.E. 2541 (1998) and applies to all private-sector employers in Thailand with 10 or more employees. This includes companies and juristic partnerships, foreign-owned businesses operating in Thailand, as well as non-governmental organizations (NGOs), foundations, and other non-profit associations.      

It is important to note that even if an employer maintains a PVD or other welfare arrangement, they are still required to establish the EWF if the number of employees not covered under these schemes totals 10 or more. The obligation to register for and contribute to the EWF is based on the number of uncovered employees, not total headcount alone.

Any individual falling within the definition of “employee” under Section 5 of the Labour Protection Act is automatically covered, regardless of job title, length of service, or contract type. This includes:

• Full-time and part-time employees;
• Temporary, fixed-term, or daily wage workers; and
• Probationary staff and subcontracted workers if they meet the legal definition of being under an employment relationship with the organization.

Upon termination of employment, covered employees are entitled to receive both their own contributions and those made by their employer, plus accrued interest. In the event of an employee death, benefits will be paid to the designated beneficiary or, if none is named, distributed to legal heirs in accordance with Thai inheritance law.

Claims can be submitted through the government’s online portal or at a local labor office. Required documents include a termination letter or, in the case of a beneficiary, a death certificate, along with proof of identity and, if applicable, evidence of the claimant’s relationship to the deceased employee.

Contribution Structure and Wage Definition

For the purposes of calculating contributions under the Employee Welfare Fund (EWF), “wages” are defined by the Labour Protection Act as monetary compensation paid by the employer in return for work performed during regular working hours. This includes:

• Fixed base salary
• Overtime pay 
• Shift differentials 
• Hardship allowances
• Bonuses that are contractually agreed upon or regularly paid as part of the employee’s compensation package

However, it should be noted that not all payments made to employees are included in the EWF calculation. Discretionary bonuses, such as one-time performance rewards that are not contractually guaranteed, are excluded. Reimbursed expenses such as travel or per diem allowances are also not included.

Non-monetary benefits, including meals, uniforms, housing, or transportation, are also outside the definition of “wages” for EWF contribution purposes. 

The contribution schedule has been set accordingly:

Provident Funds and Exemption Criteria

Employers with an existing registered Provident Fund (PVD) may apply for an exemption from EWF contributions if their scheme meets certain conditions. These include:

• Coverage of all employees from their first day, including those on probation.
• Re-enrollment rights for former participants. 
• Employer and employee contributions of 2% to 15% of wages. 
• Depositing funds into each employee’s individual bank account. 
• Having a clear process for disbursing funds upon termination or death.

Employers who manage their own welfare schemes outside of a registered PVD may also be exempt if their scheme complies with the EWF’s ministerial regulations. That means meeting the same minimum contribution rates of EWF, ensuring transparency and proper administration, and aligning with the fund’s disbursement rules.

That said, the exemption is not automatic. Employers must submit a formal application and provide supporting documents to the Department of Labour Protection and Welfare for review. If only part of the workforce is covered under a compliant scheme, contributions must still be made for all uncovered employees.

Registration and Compliance Obligations

Employers must register for the EWF before 1 October 2025 and ensure their company registration certificate, employee roster indicating wage or salary details, and documentation for an existing PVD or employer-managed welfare scheme (idf seeking an exemption) are submitted. While an online registration system is expected closer to the deadline, early preparation is strongly advised.

It is also recommended for employers to ensure they are prepared for new recurring compliance obligations. These include:

• Withholding employee contributions from payroll;
• Matching them with the employer’s share; 
• Submitting payments by the 15th of each month; 
• Reporting changes, such as resignations or terminations, to the Department of Labour Protection and Welfare; and
• Returning employee-managed welfare fund balances and issuing termination certificates within 30 days (if exempted under the employer’s own scheme).

Failing to comply with EWF obligations may lead to significant penalties. Employers who fail to submit contributions on time face a monthly surcharge of 5% on the unpaid amount. Additional consequences include fines of up to THB 10,000 per violation and, in cases of willful non-compliance or false declarations, imprisonment for up to six months.

The Department of Labour Protection and Welfare is also authorized to conduct inspections and enforce penalties, so it’s important to stay ahead of compliance requirements. 

Practical Steps to Prepare for EWF Compliance

In light of the upcoming implementation of the EWF, employers should start preparing ahead of time to manage both the financial and administrative impacts of this upcoming requirement, particularly those without a provident fund. Here are some key considerations based on common employer scenarios:

Employers without an existing welfare program:

• Employers without an existing welfare program should assess the long-term impact of contributing to the EWF in terms of cost, flexibility, and employee retention, and compare that with alternative options such as the PVD or having their own welfare fund.
• The implementation of the EWF, or any alternative welfare option, will involve workloads such as tracking contributions, managing fund disbursements, and fulfilling reporting obligations. Employers should therefore prepare accordingly.

Employers with a Provident Fund (PVD)

• Even if a PVD is already in place, employers should review current arrangements to ensure they align with the requirements of the upcoming regulations.
• It may also be necessary to amend the PVD if not all employees are covered, particularly those under probation or new hires. Employees who have opted out of the PVD should be given the option to rejoin immediately to prevent both the employer and employee from being subject to EWF contributions. 
• If the existing PVD does not fully comply with the new requirements, employers should be prepared to contribute to the EWF in parallel.  

Employers with other welfare arrangements:

• Employers who have opted for other welfare arrangements must ensure they meet the ministerial requirements, particularly that contribution rates match those of the EWF, each employee has an individual bank account, and fund disclosures and disbursement processes are properly administered. 

To ensure smooth compliance with Thailand’s Employee Welfare Fund (EWF) ahead of its 1 October 2025 implementation, employers should begin preparing key operational and policy updates. This includes upgrading payroll and HR systems to accurately calculate and submit contributions, reviewing employment contracts to reflect EWF obligations, and evaluating existing benefit schemes, particularly Provident Funds (PVFs), to determine whether exemption from the EWF is possible. 

Equally important is transparent employee communication. Employers should educate staff about the EWF’s purpose, benefits, and how contributions will be managed. Taking early action will help businesses reduce compliance risks and ensure alignment with evolving labor regulations. For tailored advice, Silk Legal’s experts on employment regulations can assist with registration, exemption review, and full legal compliance. Contact us at [email protected].