Associate Partner
Attorney at Law (Germany)
Employee Welfare Fund
- From the Newsletter "ASEAN Newsflash", Q4 2025
Starting 1 October 2025, employers in Thailand will have to establish an employee welfare fund (EWF) with the Thai government, provided the employer has at least 10 employees. An exemption will apply to employers offering similar protection in the form of a provident fund or otherwise. From our initial review it seems that the exemption will only apply if all employees are registered with the provident fund, including temporary employees.
Purpose and scope
The EWF will provide financial assistance to employees in cases of termination, unemployment or similar circumstances. Employers and employees will have to make contributions. The initial rate will be 0.25 percent of wages. From 2030 onwards, the rate will increase to 0.5 percent of wages.
Consequences of non-compliance
Non-compliance will be sanctioned. If employers fail to register a necessary EWF or provide false information, penalties range from a fine of THB 10,000 to imprisonment of up to six months. Should an employer fail to withhold and remit the contributions, a monthly surcharge of 5 percent on the outstanding amount applies. Note that there is a risk of personal liability of directors under the Act on Offenses Concerning Registered Partnerships, Limited Partnerships, Limited Companies, Associations, and Foundations.
We await further clarification on the specifics of registration. However, for now, all companies having at least 10 employees should prepare for the registration.