Starting October 1, 2025, Thailand’s Employee Welfare Fund EWF will affect payroll processing, transforming how companies manage employee benefits and payroll. For entrepreneurs and business owners, this means new responsibilities, additional payroll components, and potential compliance risks if they fail to adapt promptly.
What Is the Employee Welfare Fund EWF 2025?
The Employee Welfare Fund is a mandatory savings system designed to support employees in times of unemployment, resignation, or retirement. It is governed by the Labour Protection Act and enforced by Thailand’s Ministry of Labour. Both employers and employees make contributions, and the fund acts as a financial safety net when employment ends.
Employers are exempt from contributing to the Employee Welfare Fund (EWF) if they operate as non-profits, already provide a Provident Fund (PVF), or offer a private financial plan that meets or exceeds EWF standards. However, if any employees are not covered, such as those on probation or those who opt out of the PVF, the employer must still contribute to the EWF on their behalf.
Key Impacts on Payroll Processing
Entrepreneurs in Thailand must now prepare their payroll systems to:
✅ 1. Enrol Eligible Employees
Any company with 10 or more employees must enrol its entire workforce, including temporary, seasonal, and probationary staff, on the EWF. This mandate also applies to foreign companies operating in Thailand through a local entity unless the Ministry of Labour has granted a specific exemption.
✅ 2. Calculate and Contributions
From October 1, 2025, until September 30, 2030:
Both employees and employers are required to contribute 0.25% of the employee’s monthly wage to the Employee Welfare Fund.
From October 1, 2030: The contribution rate for both parties will increase to 0.50% of the monthly wage.
Notably, there is no wage ceiling for these contributions. Payments must be made by the 15th of the following month. Any late payments will incur a 5% monthly surcharge on the outstanding amount.
✅ 3. Update Payroll Systems
Manual calculations won’t cut it anymore. Businesses will need to:
- Adjust payroll software or systems to factor in EWF calculations
- Ensure real-time compliance with contribution caps and thresholds
- Avoid misreporting or underpayment, and penalties apply
✅ 4. File and Remit Contributions
Companies must submit monthly reports and remit both employee and employer contributions to the Ministry of Labour. The process is expected to be integrated into existing e-filing portals; however, this integration is anticipated to increase the workload for HR and payroll teams.
Why This Matters for Entrepreneurs
Entrepreneurs, especially those operating small to medium-sized enterprises (SMEs) or startups, often rely on lean teams and basic payroll practices. The EWF adds:
- Administrative complexity
- Legal compliance risk
- HR system upgrades
- Cash flow considerations for monthly budgeting
Failing to comply may result in fines or labour disputes, which can derail business operations and affect credibility.
💡 How AO Accounting & Advisory Can Help
At AO Accounting & Advisory, we specialise in payroll outsourcing, ensuring your business remains fully compliant with Thai labour laws, including EWF obligations.
We help you:
- Seamlessly integrate EWF into your payroll
- Automate monthly calculations and deductions
- Handle submission and compliance reporting
- Advise on cash flow and budget planning
With over 19 years of experience in Thai payroll services, our bilingual team makes payroll easy, accurate, and risk-free, so you can focus on growing your business.
See our Payroll Outsourcing service here: https://ao-group.co/services/payroll-outsourcing-services/
Final Thoughts
The Employee Welfare Fund marks a new era in labour protection and a new layer of responsibility for Thai entrepreneurs. While it enhances employee benefits, it also requires sharp payroll execution and legal awareness.
Don’t risk falling behind. Let AO Accounting & Advisory take care of your payroll from EWF to social security so you can focus on what matters: growing your business with confidence.
📌 Most Frequently Asked Questions (FAQs) About the Employee Welfare Fund in Thailand
❓ Who must contribute to the Employee Welfare Fund in Thailand?
Employers with 10 or more employees are legally required to contribute, along with their employees.
❓ Is EWF contribution mandatory for all employees?
Yes, all eligible employees, as defined by labour law, including full-time, probationary, and certain part-time employees, must be enrolled. It is not optional for either party to meet the threshold.
❓ How will the EWF contributions be collected?
Employers must withhold the employee portion directly from wages and remit both employer and employee contributions monthly to the Ministry of Labour, following specific reporting guidelines.
❓ What happens if a business doesn’t comply?
Non-compliance can result in:
- Penalties or fines
- Backdated contributions
- Labour inspection issues
- Loss of credibility with employees and regulators
❓ Can payroll outsourcing companies handle EWF compliance?
Yes, and it’s highly recommended. Outsourcing payroll to a provider like AO Accounting & Advisory ensures timely and accurate handling of all EWF-related duties while minimising compliance risk.