Taiwan raises labour insurance premium to 12.5%

The current rate stands at 12% of the insured party's monthly salary. 

Taiwan's labour insurance premium rate will rise to 12.5% starting this year, affecting an estimated 10.51 million workers, the Ministry of Labour(MOL) announced which was reported by Focus Taiwan.

The current rate stands at 12% of the insured party's monthly salary.  

The increase follows a gradual adjustment plan introduced alongside the labour pension program in 2009. 

Under Article 13 of the Labour Insurance Act, the premium rate was initially set at 7.5%, with incremental increases of 0.5 percentage points annually until reaching 10%.

Subsequent adjustments have been made every two years, with a cap set at 13%. The most recent hike occurred in 2023, when the rate rose from 11.5% to 12%.  

The MOL expects the increase to generate an additional $609.28m annually, bolstering the government’s labour insurance funds.