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You are here: Home > General Information > Hong Kong and Macau Residents

Hong Kong and Macau Residents

Should foreigners join labor insurance if they work in Taiwan?

  • Source:National Immigration Agency, Ministry of the Interior
  • Date:2017/4/25
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Any foreign workers hired under application by a general enterprise in accordance with Article 6 of the Labor Insurance Act are obligated to join labor insurance. Foreign workers employed by any industry under Article 8 of the same Act and domestic helpers and caregivers employed by natural persons may join labor insurance on voluntary basis. If you have any questions, please contact the Bureau of Labor Insurance, Ministry of Labor, Executive Yuan. Telephone: 02-2396-1266.

The following are important guidelines about labor insurance:

I. Insured units and insured persons

Labor insurance is a form of group insurance. All units eligible for coverage shall join the program with their employees insured. Labor insurance is both compulsory and voluntary. In the compulsory category, all workers aged above 15 and below 65, working in an establishment with 5 or more employees such as factories, mines, companies, business firms, journalistic, cultural and non-profit cooperative enterprises, and employees of government agencies or public and private schools who are not eligible for civil servants and teacher insurance programs, persons employed in the fishing industry, persons receiving vocational training in vocational training institutes registered with the government, freelance workers without regular employer or self-employed workers as well as fishermen who belong to Class A of the Fishermen’s Association are required to join the labor insurance program.
Candidates participating on a voluntary basis include all workers belonging to industries other than those which are legally and compulsory required to join the program, employers who are also working, workers working for an employer with less than four employees, those insured who have withdrawn from the program due to separation from employment but have not filed for old-age benefits and have resumed working after reaching the age of 65; persons who are under military service, persons who are sent abroad for investigation, research, or to provide services, persons who are during injury or sick leave without pay, persons who detained or suspended from work on account of a court case, before the decision of the court is announced, persons who have joined the scheme for a total period of more than 15 years, been laid off, and participate in the coverage voluntarily, persons who are during the period of medical treatment for the occupational injury or illness and withdraw from the insurance program upon the termination of his work contract , and persons who have, in accordance with law, applied for leave without pay for nursing at home.
II. Premium rates and insurance salary

The premium rates are of two types: ordinary and occupational accident, according to Article 13, paragraph 2 of Labor Insurance Act. The ordinary insurance premium rate for labor insurance shall be adjusted automatically; the rate was 7.5% in 2009 and 2010. Thereafter, premium rate is increased by 0.5% every year until the rate reaches 10%. From the year when the insurance premium rate reaches 10%, the rate will then be increased by 0.5% every 2 years until the rate reaches the upper limit of 13%. With 1% reduction pursuant to the Employment Insurance Act, the actual labor insurance premium rate is 6.5% to 12%; the actual premium in 2017 is 9.5%. The ratio of the premium payment is 70% paid by the employer, if the insured has a regular employer, 20% by the insured and 10% by the government. For occupational accidents, the full premium is the responsibility of the employer. In cases where there is no regular employer or the worker is self-employed, insured workers affiliated with an occupational union shall bear 60% of the premium for both ordinary risk and occupational accident insurance, and the remaining 40% shall be paid by the government. In the case of a Class A member of Fishermen’s Association without a regular employer or self-employed, the insured shall bear 20% of the premium for both ordinary risk and occupational accident insurance, and the remaining 80% shall be paid by the government.
From January 1, 2010 on the occupational accident insurance premium rate is divided into two types which are Business Category Accident Premium and On and Off Duty Accident Premium. For the insured units that employ a certain number of employees like 70 persons for now, the Business Category Accident Premium rate should use Experience rate schedule which is vary according to the Table of Categories of Occupations and Premium Rates Applicable for Occupational Accident Insurance, furthermore calculated and adjusted annually by the insurer using the percentage of the total amount of occupational accident insurance benefit paid in the former three years to the total payable amount of occupational accident insurance premium . In addition, the insurance salary for labor insurance has been based on the actual total salary of the insured filed in accordance with the Table of Grades of Insurance Salary.
III. Insurance Benefits

Labor insurance is divided into two major categories: ordinary insurance and occupational accident insurance. Ordinary insurance provides five kinds of benefits payable in cash, viz. maternity benefits, injury or sickness benefits, disability benefits, old-age benefits, and death benefits. For occupational accident insurance, there are three kinds of benefits payable in cash, viz. injury or sickness benefits, disability benefits and death benefits, and medical care benefits. The labor insurance pension scheme has come into force on January 1, 2009, meaning that there is another approach for claiming disability, old-age and death benefits. For those who already have insurance coverage years before the promulgation of the labor insurance pension scheme, the rights of claiming insurance benefits are not affected, they and their dependents who qualified for disability pension, old-age pension payments, or survivor's pension benefit at the same time, can opt for either pension or lump-sum payment; however, once the amount is approved by Bureau of Labor Insurance, it could not be changed anymore.

1. Maternity Benefit


In case an insured person has childbirth occurring more than 280 days after she participates in the program or has premature labor occurring more than 181 days after she participates in the program, she is entitled to claim one lump sum of maternity benefits equivalent to two months of her average monthly insurance salary. In case of a plural birth resulting from childbirth, the payment shall be increased proportionately.

2. Injury or Sickness Benefit


(1) Ordinary Injury or Sickness Benefit:



 In case an insured person does not receive salary payment due to ordinary injury or sickness while being hospitalized and under medical treatment, the insured person shall be paid 50% of the average monthly insurance salary for a maximum of 6 months starting from the 4th day of incapacity for work.  However, if the insured person has at least one full year of insurance coverage prior to the occurrence of injury or sickness, an additional 6 months will be paid, a total of one year if adding on to the previous 6 months, not including clinical visits and nursing home.



(2) Occupational Injury or Sickness Benefit:



In case an insured person does not receive salary payment due to occupational injury or occupational disease incurred on duty while being under medical treatment, he/she shall be paid 70% of the average monthly insurance salary starting from the 4th day of incapacity for work. If the insured person has not recovered after one year, the compensation shall be reduced to 50% of the average monthly insurance salary for the maximum period of one year, a total of 2 years on combined basis.

3. Disability Benefit


(1) Lump-Sum Disability Benefit:



a.In case an insured person suffers from injury or sickness and the person’s condition is stable after medical treatment but no improvement could be expected for further treatment, and if the person is diagnosed to be permanently disabled by a national health insurance qualified hospital and the disability complies with the disability benefit standard regulation, the insured person could claim disability benefit.



b.Calculation of Lump-Sum Disability Benefit:
Average monthly insured salary ÷ 30 × benefit days.
 There are 15 levels of disability. The highest level is Level 1, in which the insured are paid up to 1,200 days; the lowest level is Level 15, in which the insured get paid for 30 days.



c. An insured person will be paid an additional 50% of the original lump-sum payment if the disability is caused by occupational injury or sickness.



(2) Disability Pension:



 a. If the insured previously described or the insured who are qualified as being mentally or physically disabled according to Protection Act for Rights and Interests of Physically and Mentally Disabled have been assessed as the permanently disabled without capability to work for the rest of their lives, they will be entitled to claim disability pension. If the level of disability reaches “incapacity to work permanently” and the insured person has insurance coverage years before the implementation of labor insurance pension since 1 January 2009, the insured person may choose to receive a lump-sum disability benefit.




b. Calculation of Disability Pension Benefit:
 Average monthly insured salary x coverage years x 1.55% with minimum guarantee of NT$4,000.




c. Family Dependent Allowance:
 For those who have spouse or dependent children who meet requirements, 25% of the amount calculated shall be granted as dependent allowance for each dependent, a maximum of 50% will be granted.




d. For disability caused by occupational accident, an extra 20-month occupational injury or disease disability compensation will also be issued.


4. Old-Age Benefit


(1) Old-Age Pension: An insured person should meet one of the following requirements:



a. An insured person whose insurance coverage reached over 15 years, who is at least 60 years of age, and has resigned from work and withdrawn from insurance coverage. The age for claiming will increase gradually; in 2018 will be 61, then the limit will be raised by one year every 2 years until reaches to 65 years of age in 2026.



b. An insured person who is at least 55 years of age, and who has been employed for more than 15 years in work of special nature such as dangerous and physical hard labor defined by the competent central authority, and resigned from work and withdrew from insurance coverage. Deducted or postponed benefits shall not be applicable.


(2) Calculation of Old-Age Pension: better result will be chosen:



a. Average monthly insured salary × coverage years × 0.775% + NT$3,000



b. Average monthly insured salary × coverage years × 1.55%.


(3) the Old-Age Pension Benefits could be claimed in advance or postponed:



a. Reduced Benefit:




An insured person who has more than 15 years of insurance coverage but does not reach the claiming age for old-age pension could claim for old-age pension benefit within 5 years in advance. 4% of the pension benefit amount will be deducted for each year of pension benefit claiming advancement, with the upper limit of 20% deduction.



b. For any insured person who has more than 15 years of insurance coverage and who have confirmed with the old-age benefit claiming criteria but have postponed in claiming the old-age pension benefit, extra 4% of the pension benefit amount will be granted for each year of pension benefit claiming postponement, with the upper limit of 20% extra.


(4) Lump Sum Old-Age Benefit:



An insured person whose insurance coverage is less than 15 years and who is at least sixty years of age and resigned from work and withdrew from insurance coverage will be paid one month for each coverage year and the maximum coverage years above sixty years of age which will be paid are five years. The age limit for claiming will be increased gradually, in 2018 will be 61,and then the limit will be raised by one year for every two years until the limit reaches 65 years of age in 2026.


(5) One time Old-Age Benefit:



If an insured person has insurance coverage before the amendment of the Labor Insurance Act made on January 1, 2009, and meets one of the following requirements, he/she will be eligible for one-time old-age benefits.



a. An male insured person at least 60 years of age or a female insured person at least 55 years of age who has been insured for at least one year and retires.



b. An insured person whose insurance coverage reached over 15 years, who is at least 55 years of age and retires.



c. An insured person who has been insured in the same insured unit for over 25 years and retires.



d. An insured person whose insurance coverage reached over 25 years, who is at least 50 years of age and retires.



e. An insured person who has been employed for more than 5 years in work of special nature such as dangerous and physical hard labor defined by the competent central authority, who is at least 55 years of age and retires.



One month of benefit will be paid for each year of insurance coverage year. After 15 years, 2 months of benefit will be paid for each year, up to a maximum of 45 months. Maximum insurance coverage year after the age of 60 is 5 years, up to the maximum of 50 months.

5.  Survivor Benefit

(1) Death of family members:




a
3 months payment in the event of death of any parent or spouse of the insured person.


b 2.5 months payment in the event of death of any child at least 12 years of age of the insured person.


c 1.5 months payment in the event of death of any child less than 12 years of age of the insured person.


(2)Death of the insured person:



a. Funeral Grant:




The person who pays for the funeral could claim for 5 months of funeral grant. However, if the insured persons’ dependents do not meet the criteria for claiming Survivor pension or Survivor allowance or there is no dependent, the persons who pay for the funeral expenses could claim a ten-month funeral allowance.



b. Survivor Allowance:




The insured person who have insurance coverage seniority before January 1, 2009, their listed survivors could claim survivor allowance. The amount paid is from 10-30 months according to the insured’s insurance coverage seniority. For those who die due to occupational injuries or occupational diseasesregardless of the insurance coverage seniority, a forty-month Survivor allowance shall be issued.



[Priority of the entitled dependents to claim Survivors' allowance]



A. Spouse and children. B. Parents. C. Grandparents. D. Grandchildren who are raised by the insured person. E. Brothers and sisters who are raised by the insured person. Survivors listed on the rear orders are not entitled to apply for survivors’ allowance if survivors listed on the front still exist.



c.
Survivor Pension:




Survivor pension may be claimed if any of the following criteria are met:



a. The death of the insured person is within the effective period of the insurance:




Average Monthly Insured Salary x Insurance Coverage Seniority x 1.55% with minimum guarantee of NT$3,000.




Extra Survivor Benefit: In case there are more than 2 survivors listed on the same payment order who meet the claiming qualification, 25% of the amount shall be granted for each dependent, a maximum of 50% will be granted.





For those who died due to occupational accidents, in addition to the pension benefit, a ten-month one time death compensation for occupational accident shall be granted.



b. The insured person has withdrawn from the insurance coverage and dies during the period of disability pension benefit payment or old-age pension benefit payment: Survivor pension will be granted based on 50% of the amount of disability pension or the old-age pension. If there are more than 2 survivors listed on the same payment order who meet the claiming qualification, 25% of the amount of survivor's pension will be granted for every extra survivor. The maximum extra payment will be 50% of the standard payment.



c. The insured person who has more than 15 years of insurance coverage years and meet the qualification for claiming old-age benefit according to paragraph 2 of Article 58 of Labor Insurance Act but dies before claiming the old-age benefit: Survivor pension will be granted based on 50% of the amount of the old-age pension. If there are more than 2 survivors listed on the same payment order who meet the claiming qualification, 25% of the amount of survivor's pension will be granted for every extra survivor. The maximum extra payment will be 50% of the standard payment.



d. Priority of the entitled dependents to claim Survivor Pension: The same with Survivors' allowance, but the survivors in the second order could claim for survivor pension benefit under the conditions prescribed by law.


(3)
Missing Allowance:




a.
 If an insured person is a full-time fisherman, aviation or navigation worker, or a mine-worker, and is declared missing as a result of an accident that occurred during the course of fishing, aviation, navigation, or mining as the case may be, his/her family may apply for missing allowance.




b.
A missing allowance equivalent to 70% of the average monthly insurance salary of the past six months shall be paid at the end of every 3-month commencing from the day the insured person is declared missing in the census registry until the day of (1) the person’s return alive, (2) the expiration of one year after he was declared missing, or (3) he is declared dead by the law, whichever happens first.
c. Priority of the entitled dependents to claim missing allowance is the same as survivor allowance.

Labor insurance is administered by the Bureau of Labor Insurance, Ministry of Labor, the Executive Yuan. Foe details, please refer to the website of the Ministry of Labor, the Executive Yuan: Chinese WebpageEnglish Webpage
Address: No. 4, Section 1, Roosevelt Road, Taipei City
Telephone: 02-2396-1266

  • Hit: 2183
  • Updated: 2017/4/25 13:49:00