Answering all your questions! Everything about the Employee Welfare Fund — a summary of how contributions are calculated, key dates you need to know, plus the latest updates and a complete overview of the benefits employees will receive.

Employee Welfare Fund — Latest Update

The Employee Welfare Fund is a fund established under the Labor Protection Act to serve as social security and to build savings for employees when they leave employment or pass away, as well as to assist employees in cases where an employer terminates them without paying severance The law requires establishments with 10 or more employees to deduct employees' savings contributions and pay an equal employer contribution into the fund.

The exception is establishments that have already set up a Provident Fund (Provident Fund - PVD) for their employees, or that provide employee welfare assistance meeting the criteria prescribed by law — these are not required to remit money into the Employee Welfare Fund.

When does the Employee Welfare Fund start collecting contributions?

The Employee Welfare Fund takes effect and contributions begin to be remitted from 1 October 2026 onward. The contribution rate will gradually increase in steps, as follows:

Period	Employer	Employee	Total
1 Oct 2026 - 30 Sep 2031	0.25%	0.25%	0.50%
1 Oct 2031 - 30 Sep 2035	0.50%	0.50%	1.00%

How to calculate Employee Welfare Fund contributions, and the calculation formula for HR

The Employee Welfare Fund contribution is calculated from the wage used as the contribution base, multiplied by the rate prescribed by law. The formula is as follows:

Employee contribution = Wage × Contribution rate

Employer contribution = Wage × Contribution rate

Total remittance = Employee contribution + Employer contribution

Calculation example

Employee A receives a salary of 20,000 baht, with an initial contribution rate of 0.25%. The calculation is as follows:

Employee : 20,000 × 0.25% = 50 baht
Employer : 20,000 × 0.25% = 50 baht
Total remittance = 100 baht

What benefits will employees receive from the Employee Welfare Fund?

Employees will receive benefits from the Employee Welfare Fund, both in building savings at the end of employment and in receiving assistance in emergency cases, as follows:

Case / Situation	Benefits received from the fund
Resignation, termination, retirement	Receives savings + contributions + returns back in full
Death	Heirs or beneficiaries receive savings + contributions + returns
Terminated without receiving severance pay	Receives emergency welfare assistance from the fund immediately
Employer does not pay, or is in arrears on wages	Receives welfare assistance first, then the state will recover the amount from the employer afterward

Summary — Latest update! When does the Employee Welfare Fund start, and how is it calculated?

The Employee Welfare Fund is scheduled to officially take effect and begin collecting contributions from 1 October 2026 onward. It will apply to establishments with 10 or more employees that have not yet set up a Provident Fund (PVD), where the employer is responsible for remitting the entire amount into the fund by the 15th of the following month.

References

FAQ — Frequently asked questions about the Employee Welfare Fund

Q : How is the Employee Welfare Fund different from Social Security?

A : The Employee Welfare Fund is a fund that helps build savings and provides security at the end of employment, whereas Social Security is an insurance system that provides coverage in many cases, such as illness, childbirth, unemployment, disability, and old age. The two funds have different objectives and benefits.

Q : Do small companies also have to pay into the Employee Welfare Fund?

A : If you have 10 or more employees, you "must pay" as required by law, provided there is no Provident Fund already in place. But if you have fewer than 10 employees, you are exempt under the law, so you do not have to pay.

Q : If an employer does not pay into the Employee Welfare Fund, what is the penalty?

A : The employer must pay a surcharge at a rate of 5% per month of the outstanding amount, and may face prosecution under the Labor Protection Act.

Q : Must all employees be enrolled in the Employee Welfare Fund?

A : In principle, all employees who fall within the scope of the law must join the fund, except in cases exempted by the law or related announcements.

Q : Can an employee choose not to join the Employee Welfare Fund?

A : No. Employees cannot opt out of the fund, because it is mandatory under the Labor Protection law.

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