Page 51 - BLI-Brief Introduction

Chapter Four - Safeguards for Laborers’ Old-Age Lives

companies. The features of the new labor pension workers eventually receive their pension payments,
program are as follows: in addition to the principal accumulated from
all monthly contributions, they will also collect
1. Labor Pension Can be Accumulated dividends equivalent to the dividends paid for two-

Continuously Throughout the year-fixed-term-deposit from local banks.
Working Period
For workers who choose and apply to the new Establishment of the
labor pension program, the pension contributed
by employers during workers’ working period is National Pension Program

cumulative and portable. The implementation of the national pension
program on October 1, 2008 fills the gap within the
2. Clear Overview of Pension Costs for social insurance system; provides basic economic
Employers security for citizens who are facing old age, have

Employers should contribute 6% (or more) of given birth, have a severe disability or encountered
workers’ monthly wages to their labor pension death accident; and ensures the life stability for
accounts. With clear-cut accounting of pension their dependents. In addition, the establishment of
costs, this would also help avoid labor disputes over the national pension program also has the following
pension-related issues such as severance payment major impacts on our social security system:
and employee termination.
1. From occupation-based insurance to insurance
3. Workers Who Contribute Voluntarily for all citizens; filling the gap within the social
Enjoy Tax Incentives insurance system.

Workers may contribute voluntarily additional labor 2. From policy-based subsidies to institutional
pension within 6% of their monthly wages, and the benefits.
voluntarily paid pension is not included in the tax on 3. Aligned with the labor insurance pension
the annual income. As for employers who actually program, the national pension program has taken
engage in labor work, self-employed operators, into account welfare resources of the society,
workers not applicable under the Labor Standards thereby avoiding the duplicate allocation of
Act and commissioned workers, they may voluntarily resources and maximizing efficacy.
contribute their labor pension within 6% of their
monthly wages or operational income, and the labor
pension voluntarily paid is not included as part of Establishment of the
the annual income or operational income subject to Labor Insurance Pension
taxes.
Program
4. Labor Pensions Have Minimum Before the labor insurance pension program
Guaranteed Dividends launched in January 1, 2009, the labor insurance

In accordance with the Labor Pension Act, the program adopted a lump-sum payment approach;
dividends accrued from the labor pension fund this makes money claimed more vulnerable to
may not be lower than the dividends paid for two- inflation or unwise investments. Furthermore,
year-fixed-term-deposit from local banks. When
according to the statistics of the Ministry of Interior,

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