By Krit Komkrit, Associate Director – RSM Bangkok Law Firm

 

New Labor Regulation on Welfare Fund in accordance with the Labor Protection Act B.E. 2542: Employers and employees must contribute to the Employee Welfare Fund, effective from 1 October 2025, onwards.

A new Royal Decree on the determination of the effective date for collecting savings and contributions to the Employee Welfare Fund was published in the Royal Gazette on 15 November 2024. This Royal Decree stipulated that the employer shall contribute savings and contributions to the Employee Welfare Fund starting from 1 October 2025, onwards.

The Employee Welfare Fund is a mandatory fund under Section 126 of the Labor Protection Act B.E. 2542 (the "LPA"). It aims to support employees who leave their job or die when their employers have not established a provident fund. Unlike the provident fund, which is established voluntarily by the employers, the Employee Welfare Fund is legally required. Starting from 1 October 2025, if the employer has not established a provident fund or lacks a policy regarding employee welfare in the event of their leaving their job or dying, as outlined in the Ministerial Regulations on the determination of the criteria and method for providing of the employee welfare in the event of leaving their job or passing away B.E. 2567 (the “Ministerial Regulations), both the employer and the employee must contribute to the Employee Welfare Fund according to the rates specified in the Ministerial Regulations.

The Ministerial Regulation on the Accumulation and Contribution Rates for the Employee Welfare Fund, B.E. 2567, prescribed the contribution rates as follows: - 

The requirements to participate in the Employee Welfare Fund in the event of resignation or death can be verified according to the provisions of the LPA, as outlined in the table below.

Summary Table of Employee Welfare Fund Mandates under the LPA and Ministerial Regulations

RSM Thailand Law Firm in Bangkok Recommendation

Companies with more than 10 employees should review whether they have existing company policies on the provident fund and/or employee welfare. Furthermore, companies should prepare their payroll systems to accommodate contributions to the welfare fund.

In this regard, RSM Thailand will be able to assist companies in preparing for compliance with the welfare fund requirements by conducting a labor health check before the effective date of 1 October 2025. Please feel free to reach out to the RSM Thailand Law Firm for more information.


RSM Thailand Key contacts

Pardorn Suchiva
Legal Director – RSM Bangkok Law Firm

RSM (Thailand) Limited
E: [email protected]

Krit Komkrit
Associate Director

RSM (Thailand) Limited
E: [email protected]

Pataraporn Sirisopikun 
Senior Manager - Legal and China Practice

RSM (Thailand) Limited
E:  [email protected]