Taiwan to raise labor insurance premium rate to 12.5% in 2025

Taipei, Dec. 28 (CNA) The rate of Taiwan's labor insurance premium will be raised to 12.5 percent beginning next year, according to the Ministry of Labor (MOL).

An estimated 10.51 million workers will be affected by the increased insurance premium, which is currently set at 12 percent of the insured party's monthly salary.

The hike is part of a gradual increase in premiums introduced in tandem with the launch of the labor pension program in 2009.

Under Article 13 of the Labor Insurance Act, the premium rate was to be raised from 7.5 percent to 8 percent from the third year of the program's launch, and then by 0.5 percentage points each year until it reaches 10 percent, after which the adjustment is to be carried out every two years to reach a cap of 13 percent.

The last adjustment was made in 2023, when the insurance premium was raised from 11.5 percent to 12 percent.

In Taiwan, the insurance premium is shared between the employer, employee and government at a ratio of 7:2:1.

Citing a worker with a monthly salary of NT$28,590 as an example, the MOL said the employer would need to pay NT$2,502 of the insurance bill when based on next year's rate of 12.5 percent, while it is NT$715 and NT$358 for the employee and government, respectively.

The hike next year is expected to help boost the government's labor insurance funds, with an annual increase of over NT$20 billion (US$609.28 million) in additional income.