Starting October 1, 2025, Thailand will implement the Employee Welfare Fund (EWF), a major initiative to enhance labor protections across the country. Mandated by a Royal Decree and established under the Labour Protection Act B.E. 2541, this fund aims to offer financial stability to employees in times of job loss, death, or other unforeseen circumstances.
This article covers everything you need to know—from objectives and contributions to compliance and penalties. Whether you’re an employer or employee, understanding the EWF is essential.
🎯 Objectives of the Employee Welfare Fund
Unlike a Provident Fund (PVF), the EWF offers broader coverage and unconditional access to both employee and employer contributions. Key goals include:
- 💼 Support During Unemployment: Financial aid after job termination, regardless of cause.
- 💸 Death Benefits: Payment to designated beneficiaries or legal heirs.
- 🏦 Savings Culture: Promoting long-term financial planning.
- 🛡️ Social Security Reinforcement: Strengthening Thailand’s economic safety net.
💰 Contribution Rates & Payment Schedule
| Period | Employee Contribution | Employer Contribution |
| Oct 1, 2025 – Sept 30, 2030 | 0.25% of monthly wage | 0.25% of monthly wage |
| From Oct 1, 2030 onwards | 0.50% of monthly wage | 0.50% of monthly wage |
📌 Note: No wage ceiling applies, and payments are due by the 15th of the following month. Late payments incur a 5% surcharge per month on the unpaid balance.
🧮 Example Calculation
- Monthly Employee (12,000 THB salary)
→ 0.25% = 30 THB from employee + 30 THB from employer = 60 THB total - Daily Employee (400 THB/day, 26 days)
→ Monthly = 10,400 THB → 26 THB from employee + 26 THB from employer = 52 THB total
🏢 Who Must Comply?
All employers with 10 or more employees must:
- Register staff via Form SorKorLor.3
- Deduct & Match Contributions monthly
- Update Employment Status using Form SorKorLor.3/2 within 15 days
🚫 Exemptions
Employers are exempt if they:
- Operate as non-profits (e.g., charities, associations)
- Already provide a Provident Fund (PVF)
- Offer a private financial fund matching or exceeding EWF standards
Even in exempt businesses, if employees are ineligible for the PVF (e.g., probation period) or choose not to join, the employer must contribute to the EWF for those employees.
📜 Employee Rights
- Full Withdrawal of personal + employer contributions + interest upon termination
- Death Benefits distributed to named beneficiaries or legal heirs
- No Forfeiture for dismissal under Section 119 of the Labour Protection Act (unlike PVF)
⚠️ Penalties for Non-Compliance
- 💸 Late Payment Fine: 5% per unpaid month
- 🚨 Legal Action: Up to 6 months in prison or a fine of 10,000 THB, or both
🔍 Key Definitions
- Employee: All workers—full-time, part-time, subcontracted—under any employment contract
- Wage: Payment for regular work (including holiday and leave payments)
✅ Recommended Steps for Employers (Especially Those with PVF)
- Update your PVF to match the EWF’s legal definitions
- Let employees join the PVF from day one
- Allow re-enrollment after resignation
- Ensure seamless exemption eligibility
📅 Timeline to Remember
- Nov 15, 2024: Royal Decree enacted
- Oct 1, 2025: Contributions begin
🧾 Tax Treatment
Currently, there is no official confirmation about the tax deductibility of EWF contributions. However, it’s anticipated they will be treated similarly to PVF and Social Security Fund contributions. Stay tuned for updates.
📣 Conclusion
The Employee Welfare Fund 2025 represents a pivotal move in Thai labor protection, helping ensure all employees have a basic financial cushion. As the effective date nears, businesses must act now to review compliance, register employees, and adjust internal policies—especially if they maintain a PVF.
Stay ahead. Stay compliant.
AO Accounting & Advisory is here to support you through this transition with tailored payroll and compliance services.
📌 Frequently Asked Questions (FAQs)
1. ❓What is the Employee Welfare Fund (EWF)?
The EWF is a mandatory savings and protection scheme starting in October 2025 that provides financial support to employees upon job loss or death.
2. ❓Is participation mandatory?
Yes, for employers with 10 or more employees, unless they qualify for exemptions (e.g., have a PVF or equivalent private fund).
3. ❓Can employees access employer contributions if dismissed for misconduct?
Yes. Unlike PVF rules, EWF allows employees to withdraw all contributions, even if dismissed under serious conditions.
4. ❓Is there a salary cap for EWF contributions?
No. Contributions are a fixed percentage of the actual wage with no maximum ceiling.
5. ❓What forms do employers need to submit?
- SorKorLor.3 to register employees
- SorKorLor.3/2 for any changes in employee status
6. ❓Will EWF replace the Provident Fund?
No. It complements existing funds. However, if a company already provides a qualifying PVF, it may be exempt from EWF.