Thailand
Employee Welfare Fund
Impact date: 1 October 2026
As part of the implementation of Thailand's new Employee Welfare Fund regime, which is due to take effect on 1 October 2026, the Ministry of Labour issued regulations establishing detailed enforcement procedures for employers that fail to pay mandatory contributions to the Fund, either in whole or in part. The Fund provides financial support to employees in cases of resignation, termination (regardless of any clauses) or death. From 1 October 2026 onwards, employers who employ 10 or more employees and who do not provide employees with a provident fund or an equivalent employee welfare fund are required to:
- register employees with the Fund
- deduct 0.25% from the employee’s wages and remit it to the Fund and
- contribute 0.25% of the employee’s wages to the Fund
The deduction of employee’s wages (item 2.) and the employer’s contribution (item 3.) must be made on a monthly basis and remitted to the Fund by the 15th of the following month.
The regulations provide a framework for the seizure, attachment and public auction of employer assets to recover unpaid amounts and align the enforcement process with Thailand's civil and administrative procedure laws.
To support implementation of these enforcement powers, the Department of Labour Protection and Welfare (DLPW) subsequently issued two notifications on 16 July 2026 setting out the operational procedures to be followed by labour inspectors. These notifications introduce standardized administrative forms, including demand notices, seizure and attachment orders, asset inventory records and public auction notices. They also establish rules governing the custody and management of title deeds and other ownership documents obtained during the asset seizure process.
Together, these measures create a more detailed and structured enforcement framework for recovering unpaid Employee Welfare Fund contributions and reinforce the authorities' ability to take action against non-compliant employers.
Employer implications/action needed Employers should ensure that they are prepared to comply with the Employee Welfare Fund contribution requirements from 1 October 2026, including reviewing payroll, finance and record-keeping processes to ensure that contributions are calculated, reported and paid correctly and on time. Employers should also be aware of the enhanced enforcement powers available to the authorities and ensure that records relating to contributions and any outstanding liabilities are accurate and up to date.
Employer risk Employers failing to remit the savings or contributions to the Fund by the 15th of the following month shall be subject to a late payment penalty, amounting to a 5% monthly surcharge. Employers failing to submit the required forms, notify changes or provide false information shall be subject to no more than 6-month imprisonment or a fine not exceeding THB 10,000 or both. Employers that fail to make the required contributions may also face the seizure or attachment of company assets and the sale of those assets through a public auction process to recover unpaid amounts. Title deeds and other ownership documents may also be taken into official custody as part of enforcement proceedings. The regulations indicate a more structured and rigorous approach to enforcing employers' statutory funding obligations.
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Minimum daily wage rates based on National Skill Standards
Impact date: 14 September 2026
On 16 June 2026, an announcement was published in the Royal Thai Government Gazette setting revised skill-based minimum daily wage rates for employees who have obtained certification under Thailand's National Skill Standards framework. The updated rates apply to specific occupations in the manufacturing, renewable energy and automation sectors and include:
- THB 550 per day for Level 1 Flux-Cored Arc Welders and Level 1 MIG Welders.
- THB 650 per day for Level 2 Flux-Cored Arc Welders and Level 2 MIG Welders.
- THB 560 per day for Level 1 Off-Grid Solar System Installation Technicians.
- THB 360 per day for Level 1 Industrial Robot Maintenance Technicians.
These rates apply only to employees who hold the relevant skill certification and are intended to align minimum pay levels with recognised occupational skill standards.
Employer implications/action needed Employers operating in the affected sectors should review their workforce to identify employees who hold the relevant National Skill Standards certifications and ensure that their pay arrangements comply with the applicable skill-based minimum wage rates from 14 September 2026. Payroll systems and employment records should be updated as necessary to reflect the revised rates.
Employer risk Failure to pay the applicable skill-based minimum wage rate to eligible employees may constitute a breach of Thailand's labour laws and could result in enforcement action, financial penalties, claims for underpaid wages and increased scrutiny from the labour authorities.
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