Introduction
Employers in Taiwan must participate in Labor Insurance (LI), National Health Insurance (NHI), and the Labor Pension system. Employment Insurance is included within LI. This guide covers the 2024-2025 rates for all major statutory costs.
Labor Insurance (LI)
LI premium rate is 12.5% of insured salary, shared among employer (70%, or ~8.75%), employee (20%, or ~2.5%), and government (10%). The maximum insured monthly salary is TWD 45,800. LI covers maternity, injury/sickness, disability, old-age, and death benefits. Employment Insurance (1% of insured salary, included in LI) covers unemployment, early re-employment incentives, and vocational training.
NHI and Labor Pension
NHI premium is 5.17% of insured salary, with employer paying 60% (3.1%), employee 30% (1.55%), and government 10%. The insured salary cap is TWD 219,500/month. The Labor Pension New System requires employers to contribute at least 6% of monthly salary to each employee's individual pension account. Employees may voluntarily contribute up to an additional 6%. The salary cap for pension is TWD 150,000/month.
Summary of Employer Costs
Taiwan's employer statutory costs total approximately 17-18% of gross salary: LI ~8.75% + NHI 3.1% + Labor Pension 6% + Employment Insurance 0.7% = approximately 18.55%. Employers should also budget for national holidays (12 days), special leave based on tenure, and overtime premiums. Taiwan's employer costs are comparable to Japan and South Korea.
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