Also available in Thai: กองทุนสงเคราะห์ลูกจ้าง 2569 . A Chinese-language edition for Taiwanese investors is published on the Louis Group site: 泰國員工救濟基金 2026 .
Key Takeaways
- From 1 October 2026, Thailand's Employee Welfare Fund becomes a live payroll obligation. Every employer with 10 or more employees must register and remit monthly; the first payment (for October 2026 wages) is due 15 November 2026.
- The rate is 0.25% of wages from the employee and 0.25% from the employer, rising to 0.50% each from 1 October 2031. There is no wage floor or ceiling, unlike social security.
- Having a provident fund does not exempt the company. The exemption is assessed employee by employee. Probationers, daily-rated staff, fixed-term staff and foreign employees who are not fund members are the ones most often missed.
- The real exposure is not 0.25%. It is the 5%-per-month surcharge on anything you fail to remit, compounding quietly until a labour inspection finds the gap.
If you run a foreign-owned company in Thailand, this is a compliance item that has been postponed twice, is widely described online with the wrong dates, and lands squarely on your payroll team in the fourth quarter of 2026. This guide by Sopon Sirimongkolrat, founding partner of Louis & Partners Thailand, sets out what the law now requires and what to do before the first deduction run.
1. Why now: a fund that sat dormant for 25 years
The Employee Welfare Fund (กองทุนสงเคราะห์ลูกจ้าง) has been part of the Labour Protection Act B.E. 2541 (1998) since the beginning, in Chapter 13 (Section 126 onwards). It is a statutory fund built from employee "savings" and employer "contributions", paid out when an employee leaves or dies. The catch is that collection could only begin once a Royal Decree fixed a start date, and for a quarter of a century no such decree took effect.
That changed in two steps:
- November 2024: Royal Decree B.E. 2567 set the start date at 1 October 2025.
- 26 August 2025: the Cabinet resolved to postpone by one year, citing the slowing economy.
- 13 September 2025: Royal Decree B.E. 2568 was issued (published in the Government Gazette on 14 September). Section 3 repeals the 2024 decree; Section 4 fixes the start date at 1 October 2026. This is the decree in force today.
- 15 September 2025: a new Ministerial Regulation on contribution rates was published to match the revised timetable.
A warning about the dates you will find online. A large share of English and Thai material still quotes the repealed schedule (1 October 2025 to 30 September 2030). The schedule now in force is 1 October 2026 to 30 September 2031, then 1 October 2031 onwards. If your payroll vendor has configured the old dates, the rate step-up will fire in the wrong year.
2. Who must contribute: the 10-employee threshold and the provident-fund trap
The rule. An employer with 10 or more employees must register and remit monthly, unless an exemption applies. Count everyone: daily-rated, fixed-term and foreign employees all count toward the threshold.
The exemption. Employees for whom the employer already provides welfare under another law are exempt. In practice this means members of a registered provident fund.
The trap. The exemption is assessed per employee, not per company. Three situations catch foreign-owned businesses again and again:
- A company with 150 staff, 110 of whom are provident-fund members: the other 40 must be enrolled in the Employee Welfare Fund.
- Company rules allow provident-fund membership only after probation: probationers must be enrolled in the Welfare Fund during probation, and the employer notifies the labour inspector to stop contributions once they join the provident fund.
- Fixed-term, daily-rated and temporary staff, and foreign employees who do not meet the provident fund's eligibility criteria: all must be enrolled.
Who counts as an employee. Monthly, daily, hourly, piece-rate and seasonal workers; fixed-term employees; staff re-hired after retirement; and foreign employees of every nationality. That includes an expatriate managing director on the Thai company's payroll as much as it includes migrant workers on a factory floor.
Who does not. Independent contractors and freelancers who are not under the employer's direction; a managing director who runs the business independently and is not under anyone's command; independent sales agents; delivery riders; and students on curriculum-based internships. Certain undertakings are also carved out of Chapter 13 altogether, including fisheries, foundations, associations, purely domestic household work, and private schools in respect of their teaching staff.
3. Rates and a worked example
| Period | Employee (savings) | Employer (contribution) |
|---|---|---|
| 1 October 2026 to 30 September 2031 | 0.25% of wages | 0.25% of wages |
| From 1 October 2031 | 0.50% of wages | 0.50% of wages |
Example. An employee earning THB 30,000 per month: THB 75 is deducted from wages and the employer adds THB 75, so THB 150 enters the fund each month for that employee. For a 100-person plant, the employer side is roughly THB 7,500 a month.
Two points distinguish this from social security. Deductions are made every time wages are paid, and there is no minimum or maximum wage base. A regional director on THB 400,000 a month contributes on the full amount.
4. What counts as "wages"
The base is "wages" as defined in Section 5 of the Labour Protection Act: money paid as consideration for work during normal working hours, including pay for holidays and leave the employee is entitled to. The generally accepted split is:
- Included: monthly salary; daily and hourly wages; piece-rate pay; cost-of-living allowance; position allowance; professional allowance; fixed fuel allowance; commission calculated as a percentage from the first baht of sales; 13th-month salary.
- Excluded: bonuses; diligence (attendance) allowance; and payments that are welfare or expense reimbursement in nature, such as medical expenses, accommodation, meals, housing allowance, tolls, parking, service charge, meeting allowances and incentive payments.
The wages-versus-welfare boundary is a perennial battleground in the Thai Labour Court. Review your compensation structure line by line before you configure payroll, rather than waiting for a labour inspector to characterise it for you.
5. Registration, forms and deadlines
Where to file. Primarily through the Ministry of Labour e-service portal (eservice.labour.go.th). Filing in person, by post or by email at the provincial or area Labour Protection and Welfare Office is also possible.
Documents. The company affidavit (or commercial registration for an individual employer) and the employer's identification. A foreign employer must provide passport, work permit and proof of lawful entry.
| Form | Purpose |
|---|---|
| Sor Kor Lor 3 (สกล.3) | Employee register for employers within the scope of the fund |
| Sor Kor Lor 3/1 | Employers outside the scope whose employees opt in voluntarily |
| Sor Kor Lor 3/2 | Notification of changes (company name, address, headcount), due by the 15th of the month following the change |
| Sor Kor Lor 4 / 4/1 | Registration certificate issued by the authorities |
| Sor Kor Lor 5 | Employee's designation of beneficiaries in case of death |
A useful shortcut. An employer that has already filed Sor Por Sor 1-01, 1-03 and 6-15 with the Social Security Office is deemed to have filed Sor Kor Lor 3 (or 3/1) and 3/2. This reduces paperwork; it does not shift responsibility for an accurate register away from the employer. Employers with branches may file centrally at the head office location or separately in each branch's area.
Remittance deadline. By the 15th of the month following the month in which wages were deducted. For October 2026 wages, the first payment is due 15 November 2026. Payment goes through banks or service points contracted with the Department of Labour Protection and Welfare, after which the payment evidence and Sor Kor Lor 3 or 3/1 are uploaded to e-service. Cash or cheque is accepted only when the e-payment system is down.
6. What non-compliance costs
- Failure to remit, or short remittance: a surcharge of 5% per month on the outstanding amount (a fraction of a month of 15 days or more counts as a full month; under 15 days is disregarded).
- The labour inspector may issue a written order to pay within 30 days.
- Continued non-compliance can lead to enforcement action and criminal liability under the Labour Protection Act.
The point to internalise is that the 0.25% will never hurt a business. What hurts is a systemic omission, such as a register that never included the non-provident-fund employees or a wage base that excluded an allowance the court treats as wages, accruing 5% a month for a year or two before anyone notices.
7. When an employee leaves or dies
The employee receives the entire balance of savings, contributions and returns unconditionally, whether they resign, are dismissed (even for misconduct), reach the end of a fixed term or retire. This is a sharp contrast with provident funds, which commonly carry vesting conditions. Do not treat the Welfare Fund balance as leverage in an exit negotiation.
- The employer must issue confirmation of termination and complete the process within 30 days.
- The employee applies to the local labour inspector with an ID card (passport and work permit for foreigners) and a copy of the bank book.
- The employer must have remitted the final instalment before the employee can be paid. Employer delay is therefore an immediate ground for an employee complaint.
- On death, the balance goes to the person named on Sor Kor Lor 5; if none is named, it is divided equally among children, spouse, father and mother.
8. Eight things to do before 1 October 2026
- Count total headcount, including daily-rated, fixed-term and foreign employees, to confirm whether you reach 10.
- Split the employee register into provident-fund members and non-members. The non-members are your Welfare Fund population.
- Review the compensation structure and separate "wages" from "welfare" to fix the calculation base.
- Configure payroll for the new deduction and check that payslips display it correctly.
- Prepare Sor Kor Lor 3 with supporting documents, and apply for or confirm e-service access.
- Distribute and collect Sor Kor Lor 5 from every employee.
- Review work rules and employment contracts, particularly clauses on wage deductions and end-of-employment benefits.
- Communicate with employees in advance. Foreign workers should receive an explanation in a language they understand.
9. Three observations for foreign-owned companies
First, the true cost is well above 0.25%. Once payroll reconfiguration, documentation and monthly filing are added, the administrative load matters more than the money, especially for large or high-turnover workforces. Assign the task to a named person in Thai HR or accounting, and have head office ask for the payment evidence every month.
Second, companies that already run a provident fund are the highest-risk group, not the lowest. The employees most likely to be missed (probationers, daily-rated staff, foreign employees) are usually outside the system from day one, while management assumes the whole company is exempt.
Third, if you are weighing whether to set up a provident fund, evaluate both schemes together. A provident fund carries tax advantages and flexible design but costs more to establish and run; the Welfare Fund is cheap but rigid. Decide on workforce size, structure and retention goals, not on the headline rate.
Because the effective date has already moved twice, keep watching the Department of Labour Protection and Welfare through the fourth quarter of 2026 for details on the e-service system, form versions and the treatment of the wage base. We will update this article as announcements are made.
Frequently Asked Questions (FAQ)
When does the Thailand Employee Welfare Fund start?
Contributions start on 1 October 2026 under Royal Decree B.E. 2568 (2025). The first remittance, covering October 2026 wages, is due by 15 November 2026. Any source quoting a 1 October 2025 start is relying on the repealed 2024 decree.
My company already has a provident fund. Are we exempt?
Only for the employees who are members. Staff who are not yet members, such as probationers, daily-rated and fixed-term staff, and foreign employees who do not meet the fund's eligibility rules, must be enrolled in the Employee Welfare Fund. There is no company-wide exemption.
What is the contribution rate, and is there a wage cap?
From 1 October 2026 to 30 September 2031, 0.25% of wages from the employee and 0.25% from the employer; from 1 October 2031, 0.50% each. The base is "wages" under Section 5 of the Labour Protection Act, with no minimum or maximum.
Do expatriate managers and migrant workers have to be included?
Yes. Foreign employees of every nationality are covered, including expatriates paid by the Thai company. The only exclusions are provident-fund members and people who are not employees in the legal sense, such as genuinely independent contractors.
What happens if we pay late?
A surcharge of 5% per month accrues on the unpaid amount (15 days or more counts as a full month). The labour inspector can order payment within 30 days, and continued default can lead to enforcement and criminal liability under the Labour Protection Act.
Does an employee dismissed for misconduct still get the money?
Yes. The employee receives the full balance of savings, contributions and returns unconditionally, but only after the employer has remitted the final instalment. Employer delay becomes a direct ground for complaint.
Related reading
- กองทุนสงเคราะห์ลูกจ้าง 2569 (Thai edition)
- 泰國員工救濟基金 2026 (Chinese edition on the Louis Group site)
- Hiring foreign staff in Thailand: work permits, quotas, and common pitfalls
- Fraud and Employee Embezzlement in Thailand 2026: The Three-Month Deadline for a Criminal Complaint
Sources
- Labour Protection Act B.E. 2541 (1998), Chapter 13 "Employee Welfare Fund" (Section 126 onwards).
- Royal Decree Prescribing the Commencement Period for Collection of Savings and Contributions to the Employee Welfare Fund B.E. 2567 (2024), Government Gazette 15 November 2024 (repealed).
- Royal Decree Prescribing the Commencement Period for Collection of Savings and Contributions to the Employee Welfare Fund B.E. 2568 (2025), Government Gazette 14 September 2025 (in force).
- Ministerial Regulation Prescribing Rates of Savings and Contributions to the Employee Welfare Fund B.E. 2568 (2025), Government Gazette 15 September 2025.
- Cabinet Resolution of 26 August 2025 postponing the commencement of collection.
- Ministerial Regulation on Voluntary Membership of the Employee Welfare Fund for Employees in Undertakings Not Subject to the Labour Protection Act B.E. 2541, B.E. 2567 (2024).
- Ministerial Regulation Prescribing Rules and Procedures for Welfare Payments upon an Employee's Termination or Death, B.E. 2567 (2024).
- Department of Labour Protection and Welfare forms Sor Kor Lor 3, 3/1, 3/2, 4, 4/1 and 5, and the Department's explanatory notes.
- Ministry of Labour e-service: https://eservice.labour.go.th ; Government Gazette: https://ratchakitcha.soc.go.th ; Ministry of Labour fund page: https://www.mol.go.th/employee/employee_fund
This article is general legal information, not advice on any specific case. Gazette volume, part and page numbers and section references should be verified against the published text before being cited in formal documents. Practical details on the e-service system, form versions and the wage base may be the subject of further announcements before 1 October 2026.
Author: Sopon Sirimongkolrat, Founding Partner, Louis & Partners Thailand.