The rate of Taiwan's labour insurance premium will go up to 12.5% in 2025 according to Taiwan's ministry of labour. This increase will impact around 10.51m workers.
The increase in the premium is part of a gradual increase in premiums introduced in tandem with the launch of the labour pension programme in 2009. Presently the premium works out to 12% of the insured’s monthly salary.
Under Article 13 of the Taiwan Labour Insurance Act, the premium rate was to be raised from 7.5% to 8% from the third year of the programme's launch, and then by 0.5% percentage points each year until it reaches 10%, after which the adjustment is to be carried out every two years to reach a cap of 13%.
The last adjustment was made in 2023, when the insurance premium was raised from 11.5% to 12%.
In Taiwan, the insurance premium is shared between the employer, employee and government at a ratio of 7:2:1. The hike next year is expected to help boost the government's labour insurance funds, with an annual increase of over NTD20bn ($609.28m) in additional income.