Thailand has the highest household debt rate in Southeast Asia, and around 8 in 10 Thai people are at risk of being unable to survive for up to three months in case of unemployment. As a response, the government proposed a solution for employee benefits in Thailand: the Employee Welfare Fund (EWF).
What is the Employee Welfare Fund?
The Employee Welfare Fund is a mandatory savings scheme established under Section 126 of the Labour Protection Act B.E. 2541 (1998). The fund requires employers and employees to make regular contributions that the latter can withdraw upon termination, retirement, or death.
The EWF serves as a short-term financial safety net. Its primary purpose is to provide employees with immediate financial support during transition periods. For example, when they are facing a sudden job loss. It will help them avoid high-interest informal loans as they search for new employment.
The start date was postponed by one year. It will be implemented on October 1, 2026.
Who Must Participate in the EWF?
Employers
All private businesses with 10 or more employees, regardless of the industry or sector, must join unless exempted due to an existing company-registered, Ministry of Labour-recognised provident fund or equivalent financial scheme.
Employees
All employees (including Thai and foreign nationals) working under contract in these eligible companies are required to participate, provided they are not covered under a qualifying private welfare fund.
Exemptions
If an employer provides a Ministry-recognised provident fund or equivalent, with contributions and benefits that meet regulatory criteria, participation in the EWF is not required.
Employees already enrolled in such qualifying schemes are not covered by the EWF.
Differences Between Employee Benefits: EWF vs. Other Funds
EWF vs. Provident Fund
| Aspect | Employee Welfare Fund | Provident Fund |
| Primary Purpose | Short-term financial security during job transitions | Long-term retirement savings |
| Contribution Rate | 0.25% initially (increasing to 0.5% in 2030) | Typically 3-15% (employer choice) |
| Withdrawal Timing | Immediately upon employment termination | At retirement age or under specific conditions |
| Employer Contribution Protection | Employee receives 100% regardless of the reason for termination | May be forfeited for gross misconduct dismissals |
| Investment Management | Government-managed through DLPW | Private fund managers with investment choices |
| Tax Benefits | Expected but not yet confirmed | Fully tax-deductible for both parties |
EWF vs. Social Security Fund
| Aspect | Employee Welfare Fund | Social Security Fund |
| Core Principle | Savings mechanism | Insurance mechanism |
| Coverage Scope | Employment termination and death only | Illness, maternity, disability, death, child support, old age, unemployment |
| Contribution Rate | 0.25% each from the employer and the employee | 5% each (capped at 750 THB/month) |
| Government Contribution | None | Yes, contributes to the fund |
| Wage Ceiling | None; calculated on full wage | Capped at 15,000 THB monthly wage |
| Withdrawal Conditions | Immediate upon job separation | Specific conditions by benefit type (age 55 for old age benefit) |
| Applicability | Establishments with 10+ employees | Establishments with 1+ employees |
Contribution Rates and Timeline
The EWF employs a phased approach to the contribution rates. There will be two phases:
First Phase
October 1, 2026, to September 30, 2030
- Employee and employer contribution: Both 0.25% of the monthly wage
- Combined rate: 0.50% of the wage
Second Phase
October 1, 2030 onwards
- Employee and employer contribution: Both 0.50% of the monthly wage
- Combined rate: 1.00% of the wage
Sample Scenario
For a company with 100 employees averaging 40,000 THB monthly wage,
- The total monthly EWF cost: (100 employees x 40,000 THB x 0.5%) = 20,000 THB
- Annual cost: 240,000 THB
Payment Procedures and Deadlines
The monthly submission deadline will be the 15th of the following month.
For October 2026 payroll:
- Deduct contributions during October payroll processing
- Submit contributions to DLPW by November 15, 2026
- First submission must include employee registration data
The submission is either through electronic filing through the DLPW online platform (which is the recommended method) or paper-based at the DLPW offices.
The government is developing an electronic system similar to SSF’s e-service platform which should make reporting seamless once it is operational.
Penalties
The law imposes penalties to make sure that employees and employers strictly comply. The late payment surcharge is 5% per month on unpaid contributions.
It compounds monthly until payment is made, and is calculated separately for employee and employer portions.
For instance, if you fail to remit 10,000 THB in contributions, here is what will happen.
- Month 1: 10,000 + (10,000 x 5%) = 10,500 THB owed
- Month 2: 10,500 + (10,500 x 5%) = 11,025 THB owed
- As you notice, the penalty accumulates quickly
Continued non-compliance may result in civil and criminal penalties, such as court orders for payment, fines for responsible officers, and potential criminal charges under the Labour Protection Act.
Registration Requirements and Process
Employer Registration
The employers are in charge of initiating the registration. Hence, this section is for employers only.
The first step is to prepare company documentation like business registration documents, tax identification number, number of employees, and company contact information.
Then register on the online platform. Create an employer account at the Department of Labour Protection and Welfare website. Complete the organisation profile, and designate authorised users for submission. If not, you can visit the DLPW office and submit the registration forms in person.
Submission of the Employee List
Using the form Sor Kor Lor 3 or Sor Kor Lor 3/1, provide the following:
- Employee identification (national ID or passport number)
- Full legal name
- Date of birth
- Position
- Monthly wage
- Employment start date
- Department/division
Review and Approval
After submission, it takes seven business days for DLPW to review and verify information. In another five business days, you will receive the registration certificate or notification of required corrections.
Maintenance
Your monthly responsibilities will be as follows:
- Report new hires immediately using Sor Kor Lor 3/1
- Notify terminations and final contribution amounts
- Submit corrections via Sor Kor Lor 3/2 for any data errors
- Process beneficiary designation forms (Sor Kor Lor 5) from employees
Required Forms
Familiarise yourself with these official DLPW forms.
Sor Kor Lor 3 / Sor Kor Lor 3/1: Employee List Submission Form
Its purpose is for initial registration and monthly reporting. Use it on your first submission in October 2026, then monthly with contributions.
Sor Kor Lor 3/2: Employee Record Change Notification Form
Its purpose is for when you need to correct errors or update employee information. Use it when previously submitted data needs modification.
This form contains the original data, corrected data, and the reason for the change.
Sor Kor Lor 5: Beneficiary Designation Form
It is for the employee designation of fund beneficiaries.
Use this form at hire, when life circumstances change or upon the request of an employee.
This form contains the names of the beneficiary, relationships, identification, and distribution percentages.
Your 6-Month Action Plan
April to May 2026
- Complete eligibility assessment
- Conduct benefits structure review
- Evaluate system readiness
- Begin vendor discussions
- Develop preliminary budget impact
June to July 2026
- Finalise implementation approach
- Configure or procure necessary systems
- Design workflows and procedures
- Create communication materials
- Assign roles and responsibilities
August 2026
- Conduct a data quality audit
- Begin employee communications
- Provide staff training
- Register on the platform of DLPW
- Prepare all required forms
September 2026
- Run payroll dry runs
- Test DLPW submission process
- Conduct final employee briefings
- Validate all circulations
- Confirm payment processes
October 2026
- Process first EWF deductions
- Submit the employee list by October 15
- Communicate clearly on payslips
- Monitor employee questions
- Document lessons learned
November 2026 and Beyond
- Submit contributions by the 15th of every month
- Process terminations and withdrawals
- Update employee records as needed
- Monitor changes in regulations
- Improve continuously
Conclusion
You have ample time to prepare before the implementation. The questions are no longer “if” or “when,” but “how well” you will implement the Employee Welfare Fund for employee benefits.
If you invest time and resources in streamlining the process, you will reap benefits when it comes to smoother operations, better employee support, and improved employer reputation.
Let us help you navigate labour regulations and manage payroll services in Thailand. Contact us at Reliance Consulting!
