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Chapter Two - Profile of Labor Insurance and Labor Protection Programs
program is supported by two pillars of “individual subject to taxes. As for employers who actually
labor pension accounts” and “annuity insurance”; engage in labor work, self-employed operators,
the above-mentioned connotations are explained workers not applicable under the Labor
separately as follows: Standards Act and commissioned workers, they
may voluntarily contribute their labor pension
1. Individual Labor Pension Accounts within 6% of their monthly wages or operational
(1)Applications income, and the labor pension voluntarily paid
is not included as part of the annual income or
1. Mandatory Contributors operational income subject to taxes.
The eligible subjects of the Labor Pension
Act pertain to workers eligible under the (3)Application for Labor Pension
Labor Standards Act (including Taiwanese Payments
citizens; foreign spouses; spouses from 1. Lump-Sum Pension Payments
Mainland China, Hong Kong, or Macau; and
permanent resident foreigners). However, Workers aged 60 and over who have
mandatory contribution is not applicable contributed for less than 15 years should
to those who have their pension reserves apply for the principals and accrued
contributed in accordance with the Private dividends from workers' individual labor
School Law. pension account in a lump sum at one
time. Workers aged 60 and over who have
2. Voluntary Contributors contributed over 15 years may request to
According to the paragraph 2 of Article claim a lump-sum pension payment.
7 of the Labor Pension Act, if workers
who actually engage in labor work, self- 2. Monthly Pension Payments
employed operators, commissioned workers, Workers aged 60 and over who have
and workers not applicable to the Labor contributed over 15 years may request
Standards Act, may voluntarily contribute to claim monthly pension payments. The
and request to claim pension in accordance amount of monthly pension payments is
with the Act. computed on the basis of the principals and
accrued dividends from workers’ individual
(2)Labor Pension Contribution Rates labor pension account and shall be
and Monthly Contribution Wages calculated based upon the Terms Life Chart
of Annuity, average life expectancy, interest
The amount of labor pension borne by rate and other factors, with payment being
employers shall not be less than 6% of paid in fixed installments.
workers' monthly wage, and shall be reported
by employers based on workers’ total monthly 3. Claiming Pension after Application for
wages according to the Table of Monthly Pension Payments
Contribution Classification of Labor Pension. Workers who continue to work after
Meanwhile, workers may voluntarily contribute having received their pension payments,
their labor pension within 6% of their monthly their subsequent seniority shall be reset.
wages, and the labor pension voluntarily paid Employers shall continue to contribute the
is not included as part of the annual income labor pension to workers’ original individual
Service‧Convenience‧Efficiency‧Innovation 31
