Taiwan’s labor insurance system plays a crucial role in protecting the rights and welfare of employees and employers. This guide will break down the essentials of Taiwan’s labor and employment insurance, including how premiums are calculated, shared, and applied across different salary grades. If you’re an employer or employee, this information will help you better understand your responsibilities and benefits under the system.

What Is Taiwan Labor Insurance?

Labor insurance in Taiwan is a mandatory social security program that provides financial protection for workers in case of injury, illness, disability, retirement, or death. This program is complemented by employment insurance, which supports workers during periods of unemployment. Both types of insurance are overseen by the government and require contributions from both the insured person (worker) and the insured unit (employer).

Understanding Premiums: How Are They Calculated?

Premiums for labor and employment insurance are based on the worker’s monthly salary. The total insurance premium is shared between the insured worker and the employer, with the employer typically covering a larger share. Additionally, the table provided by the government offers specific details about the premium contributions for various salary grades.

Key Details from the 2025 Premium Table:

Salary Grades and Corresponding Premiums: Salaries are categorized into different grades, starting from NT$11,100 to NT$25,250. For each salary grade, the premium amount is clearly divided between the worker and the employer.

Premium Sharing Ratio: Workers generally pay 20% of the total premium, while employers cover 70%. The government subsidizes the remaining 10%, as mandated by law.

Examples:

   For a salary of NT$15,840:

1. Worker’s contribution: NT$78
2. Employer’s contribution: NT$352

   For a salary of NT$22,000:

• Worker’s contribution: NT$110
• Employer’s contribution: NT$498

Part-Time Workers: The table also includes a separate section for part-time workers, whose premiums are calculated differently but still follow a similar sharing ratio.

Key Points About Labor Insurance in Taiwan

1. Occupational Accident Insurance: Employers are fully responsible for the occupational accident insurance premium. This ensures that workers are covered in case of workplace injuries or accidents.
2. Adjustments for 2025: Starting January 1, 2025, premiums have been updated to reflect changes in the statutory requirements. Employers and employees must ensure that they are using the correct rates when calculating contributions.
3. Government Subsidies: The Taiwanese government actively supports the labor insurance system by subsidizing 10% of the total premium, making it more affordable for workers and employers.

Why Is Labor Insurance Important?

Labor insurance provides a safety net for workers and their families. In case of unforeseen circumstances like accidents, unemployment, or retirement, the insurance ensures financial stability. For employers, compliance with labor insurance regulations protects them from legal liabilities and contributes to a healthy working environment.

How to Calculate Your Premium?

To calculate your premium, follow these steps:

1. Identify Your Salary Grade: Refer to the government’s official table for labor insurance premiums.
2. Determine Your Contribution: Use the percentages provided (20% for workers and 70% for employers) to calculate your share.
3. Factor in Additional Coverage: Employers should account for occupational accident insurance, which is fully borne by them.

Example Calculation

For a worker earning NT$20,008 per month:

1. Total premium: NT$741
2. Worker’s contribution: NT$148 (20% of NT$741)
3. Employer’s contribution: NT$519 (70% of NT$741)
4. Government subsidy: NT$74 (10% of NT$741)

Important Notes

1. The premium rates for occupational accident insurance vary depending on the industrial type of the insured unit.
2. Employers must ensure accurate calculation and timely payment of premiums to avoid penalties.
3. Workers are encouraged to verify their salary grade and contributions to ensure compliance.

Conclusion

Taiwan’s labor insurance system is a cornerstone of worker protection, ensuring that both employees and employers share the responsibility of safeguarding livelihoods. By understanding how premiums are calculated and shared, both parties can ensure compliance and benefit fully from the program.

For detailed premium calculations and further information, refer to the official labor insurance resources provided by Taiwan’s Ministry of Labor or visit their website.