Starting from October 1, 2025, Thai workers will have a new form of “security” that enhances stability in their working lives — the “Employee Welfare Fund,” which will be enforced under the new law. This fund is designed to provide assistance to employees who are unfairly terminated from their jobs.

Section 126 of the Labour Protection Act B.E. 2541 (1998) mandates the establishment of the Employee Welfare Fund under the Department of Labour Protection and Welfare. The purpose of the fund is to provide financial assistance to employees in cases of termination, death, or other circumstances as determined by the Employee Welfare Fund Committee.

Where does this fund come from?

The main source of funding for the Employee Assistance Fund comes from contributions that employers are required to pay into the fund at a rate specified by law. This represents a shared effort to provide security and stability for all employees within the system.

Employer’s Responsibilities :

• Employers with 10 or more employees are required to enroll their employees as members of the fund
• Submit the employee list form and other details (Sakol 3/Sakol 3/1)
• Submit the change form for the employee list and other details (Sakol 3/2)

(In the case where the employer has already submitted the form under the Social Security law, it will be considered that the employer has already submitted the above-mentioned form)

• Deduct 0.25% of the employee's wages to be contributed as accumulated funds
• Other duties

          - Notify the employer of any changes in the facts

          - Specify the individuals eligible to receive the funds (Sakol. 5)

Exceptions where employees are not required to become members of the fund :

• Businesses with fewer than 10 employees
• Businesses where the employer provides employees with membership in a provident fund
• Businesses where the employer provides other welfare funds in case of employee resignation or death
• Businesses that are not subject to mandatory inclusion, such as agricultural work, fishing, domestic work that is not part of a business, non-profit organizations, and private schools, specifically for directors, teachers, and educational staff

Payment of Employee Assistance Fund :

• In the case of an employee leaving the job

          - Employer terminates employment (Whether or not there is a disciplinary violation)

          - Retirement

          - Resignation

          - Mutual termination of employment contract

          - End of employment contrac

• In the case of an employee's death

          - Shall be granted to the person designated by the employee in the beneficiary designation form (Form SGL.5)

          - If not specified, or if the designated person has passed away, the benefit shall be distributed equally among the children, spouse, or parents who are still aliv

          - If there are no such children, the benefit shall be transferred to the fund

• Benefits of the Fund

          - Enhance the standard of employee protection

          - Promote savings for employees

          - Enhance morale and motivation in the workplace

          - Alleviate the hardships of employees and provide additional social security guarantees

• Benefits for Employers

          - Demonstrates a positive image of the employer

          - Builds good relationships within the organization

          - Creates motivation for employees to work with the employer in the long term

The Employee Welfare Fund is an important measure to enhance financial security for employees in Thailand. Both employers and employees should prepare accordingly to ensure that the implementation is efficient and brings the maximum benefit to all parties involved.