Baku:The Cabinet has approved delaying deductions from the "Employee Welfare Fund" until January 1, 2027, to help relieve the economic burden and impacts of recent floods.
According to Thai News Agency, the Cabinet endorsed three draft laws designed to support employers and employees through the crisis. These laws propose postponing the collection of employee contributions and savings from October 1, 2026, to January 1, 2027. The floods, which occurred between September 25-29, 2026, have increased financial pressures on businesses and affected worker incomes. The Cabinet also adjusted contribution deadlines and welfare criteria to accommodate these changes, maintaining their commitment to employee security.
Lieutenant Colonel Patthadarasmi Thongslueykorn, Deputy Spokesperson for the Prime Minister's Office, noted that the Ministry of Labour proposed these changes. The postponement aims to ease the burden on businesses and employees amid economic uncertainties, particularly for those impacted by the floods. Some businesses have had to suspend or reduce operations, resulting in decreased or lost income for employees.
The Deputy Spokesperson added that businesses are also facing challenges such as limited expansion capabilities, fluctuating energy costs, trade tensions, and changing consumer purchasing power, affecting production and export costs. This is especially challenging for small and medium-sized enterprises (SMEs) that need to manage liquidity carefully. The postponement provides time for economic recovery before entering the legal collection system, with the long-term goal of securing worker welfare.
The three draft laws include key provisions delaying the start date for collecting contributions to the Employee Welfare Fund, adjusting the payment schedule while maintaining initial rates, and aligning welfare benefit criteria with the new collection schedule. Initially, the contribution rate will be set at 0.25% each for employees and employers, increasing to 0.5% from January 1, 2032. These adjustments aim to prevent sudden financial burdens and ensure the fund's goal of providing employee security is met.
The Employee Welfare Fund, part of the Labor Protection Act, provides security for employees through accumulated contributions, offering benefits upon job termination. The postponement is an adaptation to current economic conditions and does not alter the fund's establishment objectives.