On August 26, 2025, the Thai cabinet approved a one-year postponement of mandatory contributions to the Employee Welfare Fund. Originally scheduled to take effect on October 1, 2025, the enforcement date has been deferred to October 1, 2026.
The decision to delay the implementation stems from ongoing economic uncertainties in Thailand, driven by several external and domestic factors. These include increased trade tariffs imposed by the United States, the recent rise in the national minimum wage, and continued geopolitical tensions resulting from unresolved disputes with neighboring countries. These challenges have placed significant pressure on both businesses and the labor market, prompting the government to offer temporary relief through this deferral.
As a result of the postponement, the following regulations will now come into effect on October 1, 2026:
- Royal Decree determining the Commencement Period for Savings and Contributions to the Employee Welfare Fund;
- Ministerial Notification specifying the Rates of Savings and Contributions; and
- Ministerial Notification outlining the Criteria and Procedures for Employers to Provide Assistance in Cases of Termination of Employment or Death.
The Labour Welfare Fund Committee has formally endorsed the postponement.
Contribution Rates Unchanged
Although the implementation has been delayed, the contribution rates remain unchanged:
- October 1, 2026–September 30, 2031: Employers and employees each contribute 0.25% of the employee's wage to the fund.
- From October 1, 2031, onward: Contributions increase to 0.5% of the employee's wage for both parties.
All other rules and conditions concerning the Employee Welfare Fund remain in full effect.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
