Provident Fund

Provident fund is an employment benefit aimed to promote savings and serve as security for employees at private companies and state enterprises. Provident fund members receive their own savings and the amount put aside in each year to the fund is tax deductible, not exceeding 500,000 baht per year according to the laws.


KTAM is offering service to set up provident fund in form of juristic persons to serve as a saving to ensure the long-term financial security of employees at various companies. The employees who are provident funds’ members collect their savings with the fund once they leave their jobs. Also the savings with the fund could be used to deduct personal income taxes within the amount allowed by the laws.


Types of Provident Funds

- Single Fund
- Pooled Fund


Single Fund comprises of only one employer which could dictate the policy and self-manage the fund.


Pooled Fund comprises of two or more employers joining together. It is suitable for firms with smaller funds. Different funds could be joined in many ways. It could be done with companies in the same group which is called Group Fund. It is somewhat similar to single fund in which the affiliated companies could determine their fund’s policy and management. Pooled funds have an advantage when they are joined into a larger fund which could distribute risk through portfolio diversification.

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