Mandatory Employer Burden in Taiwan

GENERAL


The employment social liability contributions mentioned as below are now mandatory in Taiwan as per the contributions standard 2023


  • Arrear Wage ( 0.025% of total income capped at 45800 )
  • Worker's Compensation, aka Labor Occupational Accident Insurance: (0.14% of total income  capped at 72800 )
  • Labour Insurance (TWD 2218-3848 per month depending on the Salary income as insured income as per the contributions standard annouced on yearly basis )
  • Labour Pension (TWD 1286 - 10325 per months depending on the Salary income  as per the contributions standard annouced on yearly basis )
  • National Health Insurance Plan (TWD 1584 - 9000 per months depending on the Salary income as insured income  )


For further details, you may find with Cost Simulator@Horizons Portal


Q: How frequent the Contribution standard are being reviewed in Taiwan?

In General, the standard for the following year are being announced by the authorities later December time every year.  You may refer to the Standard for 2023 attached "table 3-in-1"


Q: Do the monthly employer burden contributions always remain consistent in amount, even during the first or last month of employment or any month with incomplete month for onboarding and offboarding?

A: No. they don't but varies upon contribution bases details as below,

 

Contributions ItemsContributions Review FrequencyProration for Incomplete month of onboarding & Offboarding?
Arrear Wage Monthly, on payable amount for the period

Yes, 

The only exception is National Health Insurance, which cannot be prorated. The remaining 4 items are prorated for incomplete months of onboarding and offboarding using the following formula.


Round(Contribution/30*X, 0)

X= 30 - invalid calendar days under employment

Worker's Compensation
Labour Pension







Monthly, on payable amount for the period
Annually review upon the Contributions standard announced by the authority
Labour Insurance

Monthly review for Recurring income as insured incomes changes
Quaterly review if any 3-months- Average flux due to non-recurring incomes added.
Annually review upon the Contributions standard announced by the authority

National Health Insurance Plan

No,

The calculation of national health insurance premiums is based on a "monthly" basis. The last day of the month serves as the reference date, and the insured person's current insurance unit bears the full cost for that month.





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