Employee Welfare Fund Contribution Announcement Template

Employee and employer contributions to the Employee Welfare Fund are scheduled to begin on October 1, 2026. Initially, employees will contribute 0.25% of their wages, matched by employers at 0.25%. The rate will increase to 0.50% for each party from October 1, 2031.

Table of Contents:

Employee Welfare Fund Contribution Announcement Template
Which Companies Must Contribute to the Employee Welfare Fund?
If a Company Has a Provident Fund, Must It Also Contribute to the Employee Welfare Fund?
What Percentage Is Deducted for the Employee Welfare Fund?
Employee Welfare Fund Contribution Announcement Template—Download and Customize It
What Should HR Prepare Before Employee Welfare Fund Deductions Begin?
How Does the Employee Welfare Fund Differ From a Provident Fund?
Summary: Employee Welfare Fund Contribution Announcement Template
FAQ: Frequently Asked Questions About the Employee Welfare Fund

Which Companies Must Contribute to the Employee Welfare Fund?

Businesses with 10 or more employees that do not provide employee coverage through a provident fund must enroll their employees as members of the Employee Welfare Fund as required by law.

If a Company Has a Provident Fund, Must It Also Contribute to the Employee Welfare Fund?

Employees who are already members of a provident fund are exempt under the applicable criteria. However, if some employees in the company are not provident fund members, the company must enroll those employees in the Employee Welfare Fund.

What Percentage Is Deducted for the Employee Welfare Fund?

The current employee and employer contribution rates are divided into two periods:

October 1, 2026 – September 30, 2031: employers and employees each contribute 0.25%
From October 1, 2031: employers and employees each contribute 0.50%

Learn more >>> Latest Update: When Does the Employee Welfare Fund Begin and How Is It Calculated?

Employee Welfare Fund Contribution Announcement Template—Download and Customize It

This sample is a template for internal company communication. It is not an official government form for registration or fund remittance. Before use, HR should revise the wording to reflect the company’s status and the employees who are actually covered.

What Should HR Prepare Before Employee Welfare Fund Deductions Begin?

1. Check the Number of Employees and Determine Who Is Covered

Identify employees who are not yet covered by a provident fund and prepare a list of those who must join the Employee Welfare Fund as required by law.

2. Prepare the Payroll System

Add payroll items for employees’ Employee Welfare Fund contributions and the employer’s matching contributions so the amounts can be reviewed in every pay period.

3. Notify Employees in Advance

Communicate before deductions begin so employees understand the amounts shown in payroll. For example, issue a notice or announcement before the first deduction is made.

4. Check the Latest Legal Requirements Before Remitting Contributions

Monitor the latest laws and regulations relating to the fund to ensure compliance and reduce legal risk.

How Does the Employee Welfare Fund Differ From a Provident Fund?

Comparison	Provident Fund (PVD)	Employee Welfare Fund
Fund Type	Voluntarily established by employers and employees	Mandatory for qualifying businesses and employees
Primary Purpose	Build long-term savings for employees when they leave their jobs or retire	Provide financial security when employees leave their jobs, pass away, or meet other specified conditions
Employee Contribution	Generally 2–15% of wages, according to the fund’s rules	0.25% of wages during the initial period
Employer Contribution	The employer contributes at the rate specified in the fund’s rules	0.25% of wages during the initial period
Investment	Funds are invested according to the fund’s investment policy	Managed under the Employee Welfare Fund

Learn more >>> What Is the Difference Between a Provident Fund and the Employee Welfare Fund?

Summary: Employee Welfare Fund Contribution Announcement Template

An Employee Welfare Fund contribution announcement should clearly state when deductions will begin, which employees are covered, the percentage deducted from employees, and the employer’s contribution rate.

HR can customize the announcement template above by updating the company name, date, contact channels, and covered employee groups. However, HR should review the latest announcements and criteria issued by the Department of Labour Protection and Welfare before putting it into effect.

FAQ: Frequently Asked Questions About the Employee Welfare Fund

When Will Employee Welfare Fund Deductions Begin?

Under the current schedule, employee and employer contributions will begin on October 1, 2026.

Must Employees Who Already Have a Provident Fund Contribute Again?

Employees who are already provident fund members are exempt under the applicable criteria.

What Should an Employee Welfare Fund Announcement Tell Employees?

It should state the deduction start date, the employee contribution rate, the employer contribution rate, and which employee groups are covered.

By What Date Must Employers Remit Fund Contributions?

Employers must remit employee and employer contributions by the 15th day of the month following the month in which the employee contribution was deducted.

Which Companies Must Join the Employee Welfare Fund?

In general, businesses with 10 or more employees that do not provide employee coverage through a provident fund or another legally qualifying welfare arrangement are required to participate.

Read More Related Articles