When it comes to employee benefits in Thailand, the term “Employee Welfare Fund” may still be unfamiliar to many. However, it is an important mechanism designed to strengthen financial security for Thai workers. This article breaks down the key information about the Employee Welfare Fund in a simple Q&A format, addressing common questions both employers and employees should be aware of.
For Employees
Q1: What is the Employee Welfare Fund and what is its purpose?
A: The Employee Welfare Fund is established to provide protection and savings as a financial safety net for employees. Contributions made by both employers and employees will be invested to generate returns, functioning similarly to a provident fund. The fund is scheduled to take effect on October 1, 2025.
Q2: What is the contribution rate for employees?
A: Contributions are shared equally by employers and employees, as follows:
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From October 1, 2025 to September 30, 2030: 0.25% of wages per party (no ceiling)
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From October 1, 2030 onward: 0.50% of wages per party (no ceiling)
Q3: How is the Employee Welfare Fund different from Social Security contributions?
A: The Employee Welfare Fund is meant to support employees in cases such as termination, retirement, end of contract, resignation, or death—with specific conditions and timelines for payout.
In contrast, Social Security contributions serve as protection for employees in times of hardship due to various risks. Benefits under social security include medical care, income compensation, child support, pensions, and more, as defined by law.
Q4: Can employees who already have a Provident Fund still join this fund?
A: Employees who are members of a Provident Fund on the payroll date of October 1, 2025 are not eligible to join the Employee Welfare Fund.
However, if an employee is not a member of a Provident Fund on that payroll date, or later resigns from it, they will automatically be enrolled in the Employee Welfare Fund.
Q5: In which cases can employees receive payouts from the fund?
A: Employees are eligible for benefits only in the following cases:
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Death
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Resignation
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Termination of employment (regardless of whether severance pay is received)
Q6: What must employees do with their fund money when they leave a company?
A: They must claim the fund contributions made by their former employer within one year of their resignation, termination, or death.
Q7: What happens to the fund if an employee moves to a new company?
A: It depends on whether the new employer qualifies under the scheme (i.e., employs more than 10 people and does not offer a Provident Fund to new employees).
If the conditions are met, the employee will automatically be enrolled in the fund, and contributions will begin from their first payroll cycle.
Q8: How can employees check their accumulated fund balance?
A: Fund balances can be checked based on future announcements from the Department of Labour Protection and Welfare.
Q9: What should employees do if their employer fails to submit contributions?
A: Regardless of the reason, the law considers that the employer has submitted the amount to the fund. Employees can still claim the amount due. Employers who fail to submit contributions are in violation of the law, and the fund has the authority to demand back payments for any shortfalls.
Q10: Does this affect Social Security benefits?
A: No, because the two funds are separate and independent from one another.
Q11: Are part-time or temporary employees eligible to join the fund?
A: Yes, if they receive wages under the Labor Protection Act, they are eligible to become members of the Employee Welfare Fund.
For Employers
Q1: How many employees must an employer have to be required to participate in the fund?
A: 10 or more employees.
Q2: Do part-time or temporary workers count toward the employee count?
A: Yes. If the employee receives wages under the Labor Protection Act, they are eligible to be a member of the Employee Welfare Fund and must be included.
Q3: If the employer already has a Provident Fund, are they still required to participate in the Employee Welfare Fund?
A: If an employer has a Provident Fund but certain employees are not eligible to join it from their first day of employment, or are not members as of October 1, 2025, the employer must enroll those employees in the Employee Welfare Fund.
Q4: What is the process for registering employees into the fund?
A: Employers are responsible for registration by submitting required documents and forms as specified by the Employee Welfare Fund Committee.
Q5: When and how must contributions be made?
A: Contributions must be submitted at the time wages are paid to employees.
Q6: If an employee resigns, does the employer still need to make contributions?
A: No. Employees who resign, pass away, or otherwise terminate employment are no longer eligible for the fund, and employers are not required to continue contributions for them.
Q7: To whom and when must employers report employee names and numbers?
A: The Employee Welfare Fund is overseen by the Department of Labour Protection and Welfare. Reports must be submitted by the 15th day of the month following the month in which deductions were made.
Q8: Are there penalties for employers who fail to comply or fail to contribute?
A: Yes. If the employer fails to make contributions as required, a labour inspector has the authority to issue an order for the employer to pay the outstanding amount within 30 days. If the employer does not comply, the inspector may seize, freeze, and sell the employer's assets to recover the unpaid contributions on behalf of the fund.
For more information about the Employee Welfare Fund, visit:
https://www.mol.go.th/employee/employee_fund
