Starting October 1, 2025, Thailand will implement a new Employee Welfare Fund (EWF) designed to strengthen social protection for workers across the country. This initiative, which requires mandatory registration for companies with more than 10 employees, marks a significant step forward in the nation's commitment to employee welfare and financial security.
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The EWF is a government-mandated fund established to provide financial assistance to employees facing unemployment due to resignation, company bankruptcy, or in the event of the employee's death. The aim is to offer a safety net for Thai employees during transitional periods and to support dependents in the case of loss.
Who Is Affected?
All private-sector employers in Thailand with more than 10 employees need to assess whether they are required to register for the fund. Participation is only exempt if Provident Fund contributions are already in place, or if employers already provide welfare benefits via individual bank accounts for each employee. If not, both employers and employees must contribute, and compliance will be monitored by the Thai Ministry of Labour.
Contribution Requirements
The contribution model is designed to be phased in over time:
Starting October 1, 2025: Thai employers and employees will each contribute 0.25% of the employee’s wages by the 15th of the following month, otherwise penalties might apply for late contributions
From October 1, 2030: Contributions will increase to 0.5% of wages for both parties.
Employers are responsible for ensuring the correct contributions are withheld and submitted, and failure to comply may result in penalties.
When Can Funds Be Accessed?
Employees in Thailand can access the funds under specific circumstances by submitting their own application:
Upon voluntary resignation
In the event of termination due to employer bankruptcy
In case of the employee’s death, funds will be paid to designated beneficiaries
Withdrawals are processed at the time of employment termination or death, offering a vital form of income replacement or support for employees and their families.
What Should Employers in Thailand Do Now?
With the EWF's implementation just months away, employers should begin preparations to ensure compliance. Key steps include:
Reviewing headcount and current welfare arrangements to determine eligibility
Registering employees for the scheme if required
Adjusting payroll systems to accommodate the new contribution requirements
Employers operating in Thailand or planning to expand into the market should also seek guidance on the broader regulatory landscape and how changes like the EWF may affect global workforce strategies.
As a leading Employer of Record (EOR), Atlas HXM provides the tools, expertise, and local insights to help businesses manage employment compliance in Thailand and across 160+ countries. Our in-market experts monitor evolving legislation like the EWF and support clients in adapting their employment practices to ensure compliance without disruption.
For tailored guidance on how the Employee Welfare Fund may impact your operations in Thailand, connect with the Atlas HXM team today.
