Thailand Introduces New Labor Welfare Fund with Employer Contributions, Exemptions for Existing Pension Plans

Key summary

The Thai Department of Labour Protection and Welfare is implementing a new Labor Welfare Fund under the 2008 Labour Protection Act to provide financial security for employees upon job loss or death. Starting October 1, 2025, contributions are deducted from employee wages with matching funds from employers; however, collection was temporarily suspended due to flooding and economic impacts. Employees already participating in a company pension fund (Provident Fund) may be exempt from joining this new fund. The fund operates as a mandatory savings layer distinct from Social Security and the Provident Fund, offering benefits including compensation for job separation, death, illness, or injury. While employee contributions start at 0.25% of wages, employer matching ensures the total accumulated amount exceeds individual deductions.