Taiwan’s Ministry of Labor announced that the nation’s labor insurance premium rate will increase to 12.5% starting this year. This adjustment will impact approximately 10.51 million workers across the country.
Currently set at 12%, the labor insurance premium has been gradually rising since the introduction of the labor pension program in 2009. The premium rate began at 7.5% under Article 13 of the Labor Insurance Act, and was increased incrementally over the years. It first rose to 8% in the third year of the program, with annual increases of 0.5 percentage points until it reached 10%. Since then, the adjustments have been made every two years, with the final target set at 13%.
The most recent increase occurred in January 2023, when the premium was raised from 11.5% to the current 12%.
Under the new structure, the insurance premium will continue to be shared between the employer, employee, and the government. The ratio remains 7:2:1, meaning employers will contribute the largest share. For example, a worker earning a monthly salary of NT$28,590 will see the employer pay NT$2,502, while the employee will contribute NT$715, and the government will cover NT$358, based on the 12.5% rate effective next year.
The premium hike is part of a broader effort to strengthen Taiwan’s labor insurance fund. It is expected to generate an additional NT$20 billion (approximately US$609 million) annually, providing crucial financial support for the system.
This increase reflects Taiwan’s ongoing commitment to securing long-term sustainability for its labor insurance program, which benefits millions of workers nationwide.
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