On August 26, 2025, Thailand’s Cabinet approved Postpones Launch of the Employee Welfare Fund (EWF)—a mandatory contribution scheme for workers—now rescheduled to begin on October 1, 2026, instead of the originally planned October 1, 2025.
Why the Delay?
The postponement reflects government concerns over economic uncertainties—such as rising U.S. trade taxes, rising minimum wages, and regional tensions—that could place undue financial pressure on both employers and employees. A minister reportedly emphasized that the EWF’s 0.25% rate, though seemingly small, could have unpredictable impacts on businesses under weak economic conditions.
What Is the Employee Welfare Fund?
First established under the Labor Protection Act B.E. 2541 (1998), the EWF is a national-level mechanism aimed at providing financial support to employees in cases of resignation, termination, or death.
Employers with 10 or more employees, who do not already operate a provident fund or comparable welfare scheme, are required to enroll in the EWF. Certain nonprofits and organizations offering eligible schemes may apply for exemption.
Contribution Structure
Once effective, contributions are set as follows:
- October 1, 2026 – September 30, 2032: 0.25% of wages each from employer and employee.
- From October 1, 2032 onward: increased to 0.50% each.
Compliance and Penalties
Employers must remit contributions by the 15th of the following month. Late payments are subject to a 5% monthly surcharge. Non-compliance or false reporting may result in fines of up to THB 10,000, and/or up to six months in prison.
Employee Benefits
Upon termination or death, employees—or their designated beneficiaries—can receive their full contributions plus employer matching and accrued interest.
What Employers Should Do Now
Although the enforcement is delayed to October 1, 2026, businesses should not pause preparations:
- Review existing benefit schemes: Evaluate if your Provident Fund or another welfare program qualifies for exemption or will require adjustments to meet EWF standards.
- Plan system updates: Ensure payroll, HR, and administration systems can handle EWF contributions, reporting, and compliance.
- Educate staff: Communicate the new scheme, its impact, and employee entitlements effectively.
- Stay updated: Monitor forthcoming Ministerial Regulations or official guidance, particularly on registration channels and procedural.
Why This Matters for Your Business:
- Financial Planning: The delay offers breathing room to budget for contributions and update HR systems.
- Compliance Assurance: Even with the delay, the requirement remains mandatory—proactive preparation avoids penalties.
- Employee Confidence: The EWF strengthens labor protections, potentially boosting morale and retention.
- Strategic Review: Employers can now better assess whether to amend existing schemes or adopt the EWF.
Quick Reference Table
| Item | Detail |
| Original start date | October 1, 2025 |
| New start date | October 1, 2026 |
| Contribution rates | 0.25% (2026–2032), 0.50% thereafter |
| Employers required | Companies with ≥10 employees (without an exempt scheme) |
| Penalties for delay | 5% surcharge/month, THB 10,000 fine, or up to 6 months jail |
| Employee benefit trigger | Resignation, termination, death |
About AO
Why AO Accounting & Advisory?
At AO Accounting & Advisory, we offer more than just accurate payroll. We give you peace of mind. Our bilingual team helps both Thai and international businesses:
- Stay 100% compliant with all Thai labor and tax laws
- Prepare for future changes like the Welfare Fund
- Generate legal payslips and documentation
- File on time, every time
- Avoid costly errors and save internal time
FAQs on Thailand’s Employee Welfare Fund (EWF) Postponement
1. Why did the government postpone the start of the EWF to October 1, 2026?
The delay was approved due to concerns about economic uncertainties—including global trade issues, rising minimum wages, and regional tensions—that could increase financial pressure on both employers and employees.
2. Who is required to participate in the Employee Welfare Fund?
All employers with 10 or more employees must join, unless they already operate a provident fund or another welfare scheme that qualifies for exemption under the law.
3. How much do employers and employees need to contribute?
- From October 1, 2026, to September 30, 2032: 0.25% of wages each.
- From October 1, 2032, onward: 0.50% of wages each.
4. What benefits do employees receive from the EWF?
Employees, or their beneficiaries in case of death, receive their total contributions plus the employer’s matching contributions and accrued interest in the event of resignation, termination, or death.
5. What are the penalties for employers who fail to comply?
Employers face a surcharge of 5% per month on late payments, fines of up to THB 10,000, and/or imprisonment for up to six months for non-compliance or false reporting.
6. What should businesses do during the postponement period?
Employers should review existing benefit schemes, prepare payroll and HR systems for compliance, educate employees about the scheme, and monitor future regulations for detailed implementation procedures.
7. How does the EWF affect businesses in the long term?
The fund strengthens employee protection, which can improve workforce morale and retention. However, it also requires financial planning to manage future contribution costs and ensure compliance with legal requirements.