The Thai government has announced two distinct relief measures for employers. According to the Social Security Office (SSO) and recent Cabinet resolutions, mandatory compensation fund contributions will be reduced, and the rollout of a new employee welfare fund has been delayed.
Both changes take effect on January 1, 2027. The SSO confirmed a major reduction in the compensation fund rates, a move expected to benefit over 340,000 registered employers across the country, according to Thai Post and Bangkokbiznews (in Thai).
Separately, the Thai Cabinet approved a three-month suspension on the collection of the new Employee Welfare Fund. Originally slated to begin on October 1, 2026, the mandatory collections from both employers and employees will now start on January 1, 2027, as reported by Thai PBS News.
What this means for expat employers
If you run a registered company in Thailand or employ local staff, these updates directly impact your payroll planning for the coming years:
- Lower overhead: The reduced compensation fund rates will lower your mandatory state contributions starting in 2027.
- Delayed deductions: You have an extra three months before you need to start deducting the new Employee Welfare Fund contributions from your staff's salaries or paying the employer match.
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