Summary of the Employee Welfare Fund in Thailand
1. Membership Criteria
1.1 Mandatory Participation
Businesses with 10 or more employees and no employee welfare scheme under other laws (such as a provident fund or internal company welfare system) are required to join the Employee Welfare Fund. Employers must submit Form SGL.3 to register as a member of the Employee Welfare Fund.
Employers must submit Form SGL.3 to register as a member of the Employee Welfare Fund.
Example: A company has 200 employees, 180 of whom are members of a voluntary provident fund, while 20 are not. The employer must enroll those 20 employees in the Employee Welfare Fund as required by law. This also applies to employees under probation who are not yet eligible to join the provident fund—the employer must temporarily enroll them in the Employee Welfare Fund until they pass probation and become members of the provident fund. Once enrolled, the employer may cease contributions to the Employee Welfare Fund.
**Employees covered under this requirement include:
1. Probationary and temporary employees.
2. Daily, hourly, piece-rate, and seasonal workers.
3. Migrant workers from 3 permitted nationalities / other foreign employees.
4. Fixed-term contract employees.
5. Post-retirement employees, even if they are over 60 years old.
1.2 Voluntary Participation
Businesses that are not legally required to join the fund, such as in agriculture, domestic work, or non-profit organizations.
Businesses with fewer than 10 employees may register voluntarily if both employer and employees agree, by submitting Form SGL.3/1.
Example: A company with 8 employees is not required by law to join the fund, but may do so voluntarily if both employer and employees agree.
** Exemptions from mandatory membership include:
Employers with fewer than 10 employees.
Employers providing a provident fund for employees (if an employee is not a provident fund member, the employer must enroll them in the Employee Welfare Fund)
Employers providing employee welfare under the 2024 Ministerial Regulation on severance or death benefits
Businesses exempted by specific laws from Chapter 13 (Employee Welfare Fund), such as fisheries, foundations, associations, household work not involving business, and private schools (for teaching personnel only)
2. Registration and Document Submission Procedures
2.1 Initial Registration
Mandatory employers: Submit Form SGL.3
Voluntary employers: Submit Form SGL.3/1
Upon approval, a certificate will be issued: SGL.4 (mandatory case) or SGL.4/1 (voluntary case)
2.2 Contribution Submission
Submit Form SGL.3 or SGL.3/1 along with contributions by the 15th of the following month after wage payment.
Example: For October 2025 wages, contributions must be submitted by 15 November 2025
2.3 Updating Company Information
If company details change (e.g., name, address, number of employees), employers must submit Form SGL.3/2
3. Contribution Rates
From 1 October 2025 – 30 September 2030: 0.25% from both employee and employer
From 1 October 2030 onward: 0.50% from both employee and employer
Employers must deduct the employee’s portion from monthly wages and submit both contributions by the 15th of the following month.
4. Contribution and Accumulation Calculation
Calculated based on total wages including: Overtime (OT), Position allowance, Attendance bonus , Transportation, Meal allowance, Shift pay
Excluded: Bonus or irregular compensation
According to Section 5 of the Labour Protection Act B.E. 2541 (1998), “wages” means the agreed payment for work during normal hours—hourly, daily, monthly, or performance-based. It also includes holiday and paid leave wages.
5. Failure to Submit Contributions
If contributions are not submitted or are incomplete, an additional 5% per month is charged
A labour inspector will send a notice requiring the employer to settle the outstanding amount within 30 days.
6. Claiming Refunds from the Fund
6.1 When an Employee Leaves
In cases of contract termination, resignation, dismissal (with or without cause), or retirement:
The employer must issue a termination letter and return both employee and employer contributions within 30 days.
6.2 When an Employee Passes Away
The fund will be paid to the person designated in Form SGL.5.
If not designated, the amount is divided equally among the spouse, children, and parents.
If no heirs exist, the amount will remain in the fund.
7. Fund Benefits
For Employees:
Enhances employee protection standards.
Encourages saving (currently under tax-deduction consideration).
Improves job morale
Reduces financial hardship and strengthens social security
For Employers:
Builds a positive corporate image
Improves internal workplace relations
Increases employee motivation and retention
8. Penalties
Employers who fail to submit required forms, fail to report changes, or provide false information may face:
Up to 6 months imprisonment or A fine up to 10,000 THB, or both
For inquiries, contact:
Labour Protection Division Department of Labour Protection and Welfare Tel: 0 2660 2060–1