On 22 October 2026, Thailand published a Royal Decree in the Royal Gazette under which collection of employee savings and employer contributions to the Employee Welfare Fund will start on 1 January 2027, three months later than originally planned. In the same week, the Department of Employment cracked down on illegal employment of foreign nationals at beauty salons in Bangkok and restated the applicable penalties.
Royal Decree: Collection Start Date Moved to 1 January 2027
On 22 October 2026, the Royal Gazette, Volume 143, Part 65 A, published the Royal Decree Prescribing the Start Date for Collection of Savings and Contributions to the Employee Welfare Fund B.E. 2569 (2026). The main provisions are:
Section 2: the Royal Decree takes effect from 1 October 2026;
Section 3: the Royal Decree of the same name issued in B.E. 2568 (2025) is repealed;
Section 4: collection of employee savings and employer contributions starts on 1 January 2027.
The stated rationale is that, because of the floods, some businesses have suspended or reduced production and employee incomes have fallen, so the start of collection is postponed.
This formalises earlier developments: on 1 October the Minister of Labour told Parliament that a postponement of about six months was being considered; on 14 October the Cabinet approved in principle a draft postponing collection by three months to 1 January 2027, stating that the rates would remain at the original level. With the Royal Decree now published, the start date is formally set at 1 January 2027 and is no longer a "proposed postponement". The Royal Decree itself does not address contribution rates; the specific rates and filing method are subject to announcements by the Ministry of Labour and the competent authorities.
Enforcement on Foreign Nationals: Beauty Work Is Prohibited for Foreigners
On 28 October, Thailand's Department of Employment reported an inspection of nail and eyelash salons in the Thong Lo area of Bangkok, finding 6 foreign nationals working illegally (5 Vietnamese nationals and 1 person without registered nationality) and 1 employer involved. The Department restated that beauty work is an occupation prohibited for foreigners. The penalties are:
Foreign nationals: a fine of THB 5,000 to 50,000 (approx. RMB 1,100 to 11,000), deportation, and a two-year ban on applying for a work permit;
Employers: a fine of THB 10,000 to 100,000 (approx. RMB 2,200 to 22,000) for each foreign national employed.
This is a restatement of enforcement under existing rules, not a new regulation.
Impact on Businesses in Thailand
The Employee Welfare Fund is a new contribution shared by employers and employees, in addition to social security. The three-month postponement gives businesses more time to prepare: HR and payroll systems need an additional deduction item, employment contracts and payslips need corresponding explanations, and January 2027 payroll will be the first month for which contributions must be calculated. For foreign employees, job assignments should be checked one by one against the list of occupations prohibited for foreigners.
Key Points
The start date of the Employee Welfare Fund has been formally set by Royal Decree at 1 January 2027, three months later than originally planned.
The Royal Decree was published in the Royal Gazette on 22 October 2026, takes effect from 1 October 2026, and repeals the 2025 version.
The Royal Decree does not address contribution rates, which are subject to later announcements by the competent authorities.
The Department of Employment restated that beauty work is prohibited for foreigners; employers face fines of up to THB 100,000 per illegally employed foreign national.
Z&X Insight
Although the start date has been postponed, contributions must be calculated from January 2027 payroll. Businesses should complete adjustments to their payroll systems and payslips before December and include this item in their annual filing plan. The positions held by foreign employees should match the details in their work permits. Z&X Accounting & Tax Outsourcing Services cover payroll, personal income tax and social security filings, and can help businesses add the new contribution to monthly payroll filings, with each filing confirmed by the client before submission.
Sources
พระราชกฤษฎีกากำหนดระยะเวลาเริ่มดำเนินการจัดเก็บเงินสะสมและเงินสมทบกองทุนสงเคราะห์ลูกจ้าง พ.ศ. 2569 (Royal Decree Prescribing the Start Date for Collection of Savings and Contributions to the Employee Welfare Fund B.E. 2569) | Royal Gazette, Volume 143, Part 65 A | 2026-10-22 | https://ratchakitcha.soc.go.th/documents/135427.pdf
Department of Employment Cracks Down on Illegal Employment of Foreign Nationals at Thong Lo Beauty Salons | Royal Thai Government | 2026-10-28 | https://www.thaigov.go.th/th/news/170607
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