What Payments Are Included in Employee Welfare Fund (EWF) Contributions in 2027?
Employee Welfare Fund (EWF) contributions are calculated from wages paid for regular work, such as salary, daily wages, and position allowances. OT, bonuses, and actual-expense reimbursements are excluded. Collection begins on January 1, 2027, at 0.25% for each side, and applies to employers with a total of 10 or more employees.
Latest Update October 26, 2026: The Royal Decree Prescribing the Commencement Date for Collection of Employee and Employer Contributions to the Employee Welfare Fund B.E. 2569 (2026) has been published in the Royal Gazette. The collection start date has been postponed from October 1, 2026, to January 1, 2027, to ease the burden on employers and employees affected by flooding. The ministerial regulation adjusting the contribution-rate periods to align with the new start date is still in the legislative process.
CalculatingEmployee Welfare Fund or Employee Welfare Fund (EWF) contributions must use “wages” as the calculation base. HR should not rely only on the names of items shown on the payslip, but should determine whether each payment is compensation for regular work or instead an expense, welfare benefit, reward, or payment for work outside normal working hours.
Table of Contents:
- What Payments Are Included in Employee Welfare Fund (EWF) Contributions in 2027?
- What Is the Calculation Base for the Employee Welfare Fund?
- What Are the EWF Employee and Employer Contribution Rates?
- Besides Salary, What Other Payments Must Be Included in the EWF Calculation?
- Which Payments Are Generally Excluded from the EWF Base?
- Which Payments Must Be Considered on a Case-by-Case Basis?
- Employee Welfare Fund Calculation Example
- How Should HR Prepare Before Calculating EWF Contributions?
- Summary: What Payments Are Included in Employee Welfare Fund Contributions?
- FAQ: Frequently Asked Questions About the Employee Welfare Fund
What Is the Calculation Base for the Employee Welfare Fund?
The Employee Welfare Fund uses “wages” under the Labour Protection Act B.E. 2541 (1998) as the base for calculating employee and employer contributions.
- Section 5 defines wages as money that an employer and employee agree will be paid in return for work under an employment contract during normal working hours, whether calculated hourly, daily, weekly, monthly, or based on output. It also includes payments for holidays and leave days for which the employee is entitled to wages.
- Section 131 requires the employer, each time wages are paid, to deduct the employee contribution from the employee’s wages and pay the employer contribution at the rate prescribed by law.
Therefore, HR should not consider only items labeled “salary,” but should also review other payments to determine whether they meet the definition of wages.
What Are the EWF Employee and Employer Contribution Rates?
The Royal Decree B.E. 2569 (2026) sets January 1, 2027, as the collection start date. The employee and employer contribution rates follow the draft ministerial regulation whose principles were acknowledged by the Cabinet on October 14, 2026, as follows:
| Period | Employee Contribution | Employer Contribution |
|---|---|---|
| January 1, 2027 – December 31, 2031 | 0.25% of wages | 0.25% of wages |
| From January 1, 2032 onward | 0.50% of wages | 0.50% of wages |
*Information as of October 2026. Rates may change depending on the law as finally enacted.
Note: The employer must deduct the employee contribution from the employee’s wages and separately pay the employer contribution. Both portions must not be deducted from the employee’s wages.
Besides Salary, What Other Payments Must Be Included in the EWF Calculation?
Payments that should be considered part of the EWF base are those that, in substance, compensate regular work, even if the company labels them as an “allowance” or “additional payment.”
1. Daily, Hourly, and Weekly Wages
An employee does not need to be monthly paid to have an EWF contribution base. If the employee receives daily, hourly, or weekly wages, payments made for normal working time are considered wages and must be included in the calculation.
2. Performance-Based or Piece-Rate Wages
If a company pays compensation based on the number of units produced, production output, or work completed during normal working hours, the payment may qualify as wages under Section 5. Examples include:
- Wages paid per unit produced
- Wages based on the number of completed tasks
- Wages based on output achieved during normal working hours
3. Position Allowance
A position allowance that is paid regularly to compensate an employee for duties, responsibilities, or position is likely to qualify as wages and should therefore be included in the EWF calculation base. However, HR should review the actual payment conditions rather than relying only on the item name.
4. Regular Cost-of-Living Allowance Paid Without Conditions
A cost-of-living allowance paid as a fixed amount every pay period without additional conditions may be considered part of wages because the employee receives it regularly in connection with work. If it is a one-time assistance payment or event-based payment, its purpose and conditions should be reviewed again.
5. Payments for Paid Holidays and Paid Leave
The definition of wages under Section 5 also covers payments made by the employer for holidays and leave days on which the employee does not work but is legally entitled to receive wages. Examples include:
- Paid traditional holidays
- Paid sick leave within the employee’s entitlement
- Annual leave
- Other paid leave provided by law or company policy
For unpaid leave, the unpaid amount must first be deducted, and employee and employer contributions should then be calculated from the actual wages earned.
Which Payments Are Generally Excluded from the EWF Base?
Payments that are not made in return for work during normal working hours are generally excluded from the calculation base, such as:
- Overtime pay (OT), holiday work pay, and holiday overtime pay
- Bonuses paid as special payments
- One-time assistance payments
- Travel, fuel, or telephone expenses reimbursed at actual cost
- Travel allowance for out-of-province assignments
- Medical expenses or welfare benefits provided under entitlement
- Severance pay
- Reimbursement of expenses initially paid by the employee
Overtime pay, holiday work pay, and holiday overtime pay are defined separately from “wages” under the Labour Protection Act. They should therefore not be included in the EWF base simply because they appear on the same payslip.
Which Payments Must Be Considered on a Case-by-Case Basis?
Some payments fall into a gray area. Their actual payment conditions must be reviewed to determine whether they compensate regular work.
| Item | Likely to Be Wages When | Likely Not to Be Wages When |
|---|---|---|
| Commission | Calculated from sales or performance achieved during normal working hours and paid regularly | Paid as a one-time special reward and not tied to performance during normal working hours |
| Attendance Incentive | Paid as a fixed amount every pay period without conditions | Paid as an incentive for avoiding absence, leave, or lateness, and only when the stated conditions are met |
| Fixed Allowances, Such as Fuel or Telephone Allowances | Paid in the same amount every pay period without requiring proof of expenses | Paid to reimburse actual expenses incurred for work |
*If any item remains unclear, keep evidence of the payment conditions and consult the Department of Labour Protection and Welfare or a labor law expert before configuring it in the system.
Employee Welfare Fund Calculation Example
Employee A receives the following payments in one month:
| Item | Amount | Included in EWF Calculation |
|---|---|---|
| Salary | THB 20,000 | THB 20,000 |
| Regular Position Allowance | THB 2,000 | THB 2,000 |
| Regular Cost-of-Living Allowance | THB 1,000 | THB 1,000 |
| Overtime Pay (OT) | THB 3,000 | Excluded |
| Actual Travel Expense Reimbursement | THB 1,500 | Excluded |
| Special Bonus | THB 5,000 | Excluded |
| EWF Calculation Base | Total Received: THB 32,500 | THB 23,000 |
*Information as of October 2026
When collection begins on January 1, 2027, using a rate of 0.25% for each side:
- Employee contribution = 23,000 × 0.25% = THB 57.50
- Employer contribution = 23,000 × 0.25% = THB 57.50
- Total amount remitted = THB 115
This example assumes that the position allowance and cost-of-living allowance are regular payments that qualify as wages. If the actual payment conditions differ, HR must reassess them based on the facts.
How Should HR Prepare Before Calculating EWF Contributions?
Before actual implementation, HR should review all payroll payment items rather than selecting only items labeled “salary.” Recommended steps include:
- Compile all company income and payment items
- Review employment contracts and the payment rules for each item
- Classify each item as work compensation, an expense, a welfare benefit, or a reward
- Check whether the payment relates to normal working hours or work outside normal hours
- Configure which items must be included in EWF calculations in the payroll system
- Run test calculations using sample employees from every group
- Verify employee contributions, employer contributions, and reports before actual submission
- Keep supporting documents for each classification decision for future review
Summary: What Payments Are Included in Employee Welfare Fund Contributions?
Employee Welfare Fund contributions are calculated from “wages” paid in return for regular work, not salary alone. Collection begins on January 1, 2027, with employees and employers each contributing 0.25% of wages.
| Category | Item |
|---|---|
| Included in the EWF Base | Salary, daily wages, hourly wages, piece-rate wages, position allowances, regular cost-of-living allowances, and pay for holidays and leave days for which the employee is entitled to wages |
| Generally Excluded | OT, holiday work pay, bonuses, actual-expense reimbursements, welfare benefits, and severance pay |
| Consider Case by Case | Commission, attendance incentives, and certain fixed allowances |
FAQ: Frequently Asked Questions About the Employee Welfare Fund
Q: How many employees must a company have before it is required to join the Employee Welfare Fund?
A: Employers with a total of 10 or more employees across all branches must join the fund, except for employees who are members of a Provident Fund and businesses exempted by law, such as foundations, associations, and non-business domestic work.
Q: If a company has a Provident Fund but not all employees are members, must it still join the EWF?
A: Eligibility must be checked employee by employee because employees who are not Provident Fund members may still fall within the scope of the EWF. Employers should not automatically exempt the entire company. Read more at If You Already Have a Provident Fund, Do You Still Need to Join the EWF?
Q: Must probationary employees participate in the Employee Welfare Fund?
A: Yes. Probationary status does not remove a person’s status as an employee. If both the employer and employee fall within the scope of the law, they are subject to the fund requirements.
Q: Must foreign employees contribute to the EWF?
A: Consider whether the person is an employee under the Labour Protection Act and works for a covered business. Nationality is not an automatic exemption.
Q: Can an employee choose not to pay the EWF employee contribution?
A: No. The employee contribution is a legal obligation that the employer must deduct from wages each time wages are paid. The employer and employee cannot agree to waive it between themselves.
Q: When can an employee receive money from the Employee Welfare Fund?
A: An employee is entitled to receive employee contributions, employer contributions, and benefits upon leaving employment or death. In the event of death, payment is made to the eligible beneficiary, subject to the rules and procedures prescribed by the Department of Labour Protection and Welfare.
Q: What happens if an employer submits EWF contributions late or in an incomplete amount?
A: The employer must pay additional charges on the outstanding amount at the rate prescribed by law. Employers should therefore verify the amounts and submit them on time for every period.
Q: What should HR do if an EWF amount is calculated or submitted incorrectly?
A: Review the payroll period, wage items, and member list, then make corrections through the channels and forms prescribed by the Department of Labour Protection and Welfare.
Q: How is the Employee Welfare Fund different from Social Security?
A: The Employee Welfare Fund is governed by the Labour Protection Act and administered by the Department of Labour Protection and Welfare. Social Security is governed by the Social Security Act and administered by the Social Security Office. Employers must therefore calculate and submit the two separately.
Q: Does HumanSoft support the Employee Welfare Fund?
A: Yes. HumanSoft’s HR system supports Employee Welfare Fund (EWF) management from fund setup and adding or editing employee fund information to importing data via Excel and generating Form SKL.3 and SKL.3-1 reports, using the same workflow as the Provident Fund (PVD). See details at HR Software Supporting Provident Fund (PVD) and EWF
References
- Labour Protection Act B.E. 2541 (1998)
- Royal Gazette: Royal Decree Prescribing the Commencement Date for Collection of Employee and Employer Contributions to the Employee Welfare Fund B.E. 2569 (2026)
- Royal Thai Government: Cabinet Acknowledges Three Draft Laws and EWF Employee/Employer Contribution Rates
- Chiang Rai Provincial Office of Labour Protection and Welfare: Is Commission Considered Wages?
- Department of Labour Protection and Welfare
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