The Workmen's Compensation Fund (WCF) in Thailand

In Thailand, in addition to making mandatory Social Security contributions for employees, employers are also required to contribute to the Workmen’s Compensation Fund (กองทุนเงินทดแทน).
For employers, payment into the Workmen’s Compensation Fund is a statutory obligation that cannot be ignored.

1. What is the Workmen’s Compensation Fund?

The Workmen’s Compensation Fund is a dedicated fund under which compensation is paid by the fund on behalf of the employer when an employee suffers an incident arising from work, including:

• Work-related accidents or injuries

• Occupational illnesses

• Disability

• Death or disappearance

• Loss of bodily organs or loss of working capacity

2. Which employers are required to contribute?

Any employer who hires one (1) or more employees is required to:

• Complete employer and employee registration within 30 days from the date of hiring; and

• Make contributions to the Workmen’s Compensation Fund in accordance with the law.

3. How are contributions made (เงินสมทบ)?

• Contributions are paid solely by the employer

• Paid on an annual basis

• The contribution rate is approximately 0.2%–1% of the employee’s total annual wages

• The exact rate is determined by industry risk classification, generally within the range of 0.2%–1.0%

Common reference ranges (final determination subject to the Ministry of Labour / Social Security Office):

• 🏢 Office, consulting, trading businesses: approx. 0.2%–0.5%

• 🏭 Manufacturing and factories: approx. 0.5%–0.8%

• 🏗️ Construction, logistics, high-risk industries: up to 1.0%

Note: The contribution rate is not selected by the company. It is assessed and determined by the competent authority based on industry type and historical risk exposure.

4. Key question: If Social Security already covers work-related injuries, why is the Workmen’s Compensation Fund still required?

The core distinction lies in: who pays first, what is covered, and at which stage the protection applies.

Workmen’s Compensation Fund (กองทุนเงินทดแทน)

Primary Protection

Key features:

• Applies as long as the injury or illness is work-related

• Irrelevant whether the employee has resigned or continues contributing to social security

• Used directly and immediately for the work injury itself

Main coverage:

• Medical expenses for work injuries / occupational diseases

• Income compensation during work stoppage

• Disability and death compensation

👉 Once a work injury occurs, this fund is the first line of compensation.

Social Security Fund (SSO)

Secondary / Long-term Protection

Key features:

• A comprehensive social welfare system

• Coverage requires the employee to remain within the social security system

• Focuses on long-term and livelihood protection

Relevant coverage includes:

• Long-term medical care

• Benefits following loss of working capacity

It is not specifically designed to address the immediate consequences of a work-related accident.

XiaoHongshu Facebook-Management YouTube Facebook-Consultant Facebook-HR