Restaurant associations have voiced mixed reactions to the new Employee Welfare Fund.
Collection for the Employee Welfare Fund starts next month, creating a safety net for employees after termination of employment or death.
Employers with 10 or more staff are required to participate in the fund. However, those that already provide other financial security initiatives, such as a provident fund, are exempt.
For companies with a provident fund, employees who are not members of that fund must participate in the Employee Welfare Fund.
From Oct 1, 2026 to Sept 30, 2031, both employee and employer must make monthly contributions at a rate of 0.25% of the employee’s wages.