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 Items	Contributions Review Frequency	Proration 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	Monthly, on payable amount for the period
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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Taiwan (China)

Mandatory Employer Burden in Taiwan