The long-awaited implementation of the central Employee Welfare Fund (EWF), which was prescribed by the Labor Protection Act of 1998 but has gone unfulfilled for over a quarter of a century, is now scheduled to take place in late 2025. The main aim of the EWF is to provide employees with a financial safety cushion in case of loss of employment or death.
The government recently passed three decrees with key implementation guidelines for the EWF, as follows:
Most of the employers in Thailand surveyed by WTW (81%) offer some form of supplemental retirement benefit to their employees, in the majority of cases a defined contribution provident fund jointly funded by the employer and employees. Many of these plans may satisfy some or all of the criteria for exemption from participation in the EWF; however, employers should review their plan rules to ensure compliance. For example, only a third of the plans surveyed enroll employees from the start of service, in most cases waiting until after the probationary period (four months at the median) is completed. A majority of plans also have vesting requirements for employer contributions. Employers that offer a provident fund may want to consider the potential advantages of participating in the EWF versus making any changes to their plan necessary to qualify for the EWF exemption.