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Bureau of Labor Insurance, Ministry of Labor Brief Introduction
Persons and Their Dependents request for arrears of wages, pensions, or
The subjects of the national health insurance severance pay owed by employers, the fund can
premium subsidization are the unemployed temporarily cover the payments, but the employer
insured person and the dependents of the shall repay the amount to the fund within a
insured person who have been covered by specified timeframe.
the national health insurance along with the To strengthen the security and stability of the
insured person up till the time of the insured employees' lives and economic welfare, in July
person's separation from employment and 1984 the Labor Standard Law was enacted;
withdrawal from the employment insurance Article 28 stipulates expressively that employees
program. The dependents must be those who are laid off because of employers' closure,
defined in Article 2 of the National Health liquidation or bankruptcy, are entitled to claim
Insurance Act or the status of insured person their wages for up to 6 months from the wage
of Category 6, but not those who are included arrears payment fund. To further protect
in national health insurance coverage employees' rights and to reduce labor disputes,
retroactively following the insured person's on February 4, 2015, the amendment to Article
separation from employment and withdrawal 28 expanded the scope of payments the fund
from the employment insurance program. covers, with the fund now covering retirement
※Payment Standards: pension and severance pay required by the
provisions of Labor Standards Act, and the
The insurer shall subsidize the self-paid
portion of the national health insurance severance pay required by the provisions of
premium monthly for anyone eligible for the Labor Pension Act (the total amount shall be no
subsidy in accordance with the provisions of more than 6 months of average wage).
the preceding article. However, the insurer The collection of the fund began in November,
shall not subsidize for the supplementary 1986, and it shall be collected by 0.05% of total
premium to be collected in accordance with labor insurance wage. From July 1996, after a
the National Health Insurance Act. certain amount was accumulated in the fund,
The insurance premium subsidy mentioned the rate was lowered to 0.025% to reduce the
in the preceding paragraph shall be the financial burden of employers. This system has
amount to be paid by the insured person made significant contribution to the protection of
who receives unemployment benefits or workers' lives and stability of our society.
vocational training living allowances at the
end of each period when receiving said Labor Pension Program
benefits/allowances.
The labor pension program refers to payment
Wage Arrears Payment Program given by employers when employees retire. This
is a crucial program for safeguarding employees'
The wage arrears payment program stipulates retired lives. However, the past stipulations
that employers should pay a certain amount pertaining to labor pension claiming under the
into the fund monthly to be used for subsequent Labor Standards Act (the old program) are
payment of wage arrears, retirement pension overly strict, it is hard for most employees to
and severance pay required by the provisions meet the requirements of applying. To safeguard
of Labor Standards Act, and the severance pay employees' retired lives, eliminate deficiencies of
required by the provisions of Labor Pension Act. the old program, and avoid the rights of pension
In case of non-payments upon the employee's claiming being affected by employee's change
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