Employee Welfare Fund: what employers must prepare before 1 October 2026
This law was postponed once before, but this time it will take effect for real, covering workplaces with 10 or more employees that don't yet have a provident fund. Here's a summary of the key points, contribution rates, and what accounting and HR teams need to prepare.
This law was previously postponed once, but this time it will take effect for real — for workplaces with 10 or more employees that don’t yet have a provident fund. This single document summarizes the key points, contribution rates, and what accounting and HR teams need to prepare.
Effective 1 Oct 2026 | Reference: Labour Protection Act B.E. 2541 (1998), Chapter 13
Background
Postponed once before reaching the real effective date
The Employee Welfare Fund has had a legal basis in labour law since 1998, but it is only in recent years that it has actually been set in motion to begin collecting contributions — and it was postponed once already due to economic conditions. Here is the key timeline:
| 15 Nov 2024 | First Royal Decree announced Set contribution collection (employee and employer) to begin from 1 October 2025 |
| 26 Aug 2025 | Cabinet resolution to postpone by another year To ease the financial burden on employers and employees amid continued economic volatility |
| 14 Sep 2025 | New Royal Decree B.E. 2568 (2025) announced Repealed the B.E. 2567 (2024) decree and set the new collection start date to 1 October 2026 |
| 1 Oct 2026 | Actual effective date The October 2026 wage period is the first round in which contributions must be deducted and remitted to the fund |
Definition
What is the Employee Welfare Fund?
A fund established under the Labour Protection Act B.E. 2541 (1998), Chapter 13, Sections 126–138, to provide employees with financial security. It pools employee contributions and employer contributions as capital to assist employees when they leave employment — whether by resignation or dismissal — including in the event of death.
Who is covered
Does your business need to join?
This law does not apply to every business — check the conditions before planning your budget.
| Must join ✓ Has 10 or more employees ✓ Does not yet have a provident fund covering all employees ✓ Employees on probation or not yet enrolled in the company’s PVD | Exempt – Workplaces with fewer than 10 employees – Businesses that have already established a provident fund covering all employees – Businesses providing equivalent welfare benefits under Ministerial Regulation criteria |
Contribution rates
How much must be deducted and contributed?
| Period | Employee (contribution) | Employer (contribution) |
| 1 Oct 2026 – 30 Sep 2031 | 0.25% | 0.25% |
| From 1 Oct 2031 onward | 0.50% | 0.50% |
Calculated on each employee’s wages · Remitted to the fund by the 15th of the month following the month of deduction — the October 2026 period is the first round that must be remitted.
Preparation
What accounting and HR teams should do before 1 Oct 2026
- Check your organization’s status — Count your employees and review your existing provident fund status to determine whether you are required to join or exempt.
- Update your payroll system — Prepare the 0.25% employee contribution deduction formula so it’s ready to use from the October 2026 pay period.
- Plan your budget — Allocate budget for the employer’s contribution at the matching rate.
- Set up a remittance schedule — Set a calendar to remit contributions by the 15th of each following month to avoid late submission.
Legal basis
Related laws
| Sections 126–138 | Labour Protection Act B.E. 2541 (1998), Chapter 13, Employee Welfare Fund — the legal basis for establishing the fund |
| B.E. 2568 (2025) | Royal Decree setting the start date for collecting employee and employer contributions — repeals the B.E. 2567 (2024) decree and postpones the collection start date to 1 Oct 2026 |
| B.E. 2567 (2024) | Ministerial Regulation setting employee and employer contribution rates (amended to align with the new schedule) |
| B.E. 2567 (2024) | Ministerial Regulation setting criteria and procedures for providing welfare assistance to employees who leave employment or die |
| Cabinet resolution | 26 August 2025 — Cabinet resolution approving the postponement of the collection start date |
