• Last updated:2024-01-02

【Introduction】

     In order to meet the trends of ageing population and low birth rates in Taiwan, Ministry of Labor began planning the old-age, disability, and survivor's pension systems of labor insurance in 1993, so as to provide long-term economic and living security to workers and their survivors after retirement, and make the security system of labor insurance more well-rounded. After 15 years of effort, the pension systems were finally passed in the third reading of the Legislative Yuan on July 17th, 2008 and took effect on January 1st, 2009. The labor insurance pension system allows workers have better life, enjoy more security and dignity, and strengthens Taiwan's social security system.

     Labor insurance pensions are receipt on a monthly basis and are divided into disability pension, old-age pension, and survivor's pension. The pensions provide insured persons or their beneficiaries with long-term economic and living security in the event of an accident.

【Permanent disability pension】

I. Qualifications: In case an insured person suffers from injury or sickness and the person's condition is stable after medical treatment but no improvement could be expected for further treatment, and if the person is diagnosed to be permanently disabled by a qualified hospital, and meets one of the following criteria for being permanently unable to work, the insured person may claim disability pension.
(I) The 20 disabilities listed as "no capability to work permanently" in the Labor Insurance Disability Benefit Payment Schedule.
(II) Complies with disability levels 1 to 6, individual assessment to have lost 70% or above work ability and cannot return to the work place.

II. Average monthly insurance salary: Calculated based on the average of the 60 highest monthly insurance salaries of the insured person within the insurance coverage.

III. Benefit payment
(I) The disability benefit standard is calculated based on the insured person's insurance coverage years. 1.55% of the insured person's average insured monthly salary is granted for every single insurance coverage year (average monthly insurance salary×insurance coverage years×1.55%); if the total amount is less than NT$4,000, then NT$4,000 will be granted to the insured person.
(II) Dependent's allowance

1. Additional dependent's allowance: For those who claim for disability pension and have family dependents who comply with the following criteria, an extra 25% family dependent's allowance on the amount calculated using the regulation in article 53 should be issued for every dependant with the maximum of 50% extra:
   (1) The spouse should comply with one of the following criteria:
   A. The spouse should be more than 55 years of age and the conjugal relationship has existed for more than one year. However, the above regulation does not apply if the spouse is incapable of earning a livelihood or is raising children as stipulated in (2).
   B. The spouse should be more than 45 years of age and the conjugal relationship has existed for more than one year and the spouse's monthly work income does not exceed the amount defined in the first level of Table of Grades of Insurance Salary.
   (2) The dependent children should comply with at least one of following criteria:
   A. Minority
   B. Incapable of earning a livelihood
   C. Under the age of 25, still goes to school, and monthly salary does not exceed the amount defined in the first level of Table of Grades of Insurance Salary
   
   
2. In the event dependents no longer comply with the above mentioned criteria (including the spouse remarried), disappeared, serving a prison sentence, detained or imprisoned for a criminal case, the dependent's allowance shall be terminated.

【Old-age pension】

1. Qualifications: (1)An insured person who is at least 60 years of age and has insurance coverage year reached over fifteen could claim for old-age pension benefit, and was discharged from labor insurance. The age limit for claiming old-age pension will be increased by one year and then the limit will be raised by one year for every two years until the limit reaches 65 (2026) years of age.  (2)An insured person who has been employed for more than fifteen years in dangerous, physical hard labor or work of special character and is at least fifty-five years of age and resigns.
2. Average monthly insurance salary: Calculated based on the average of the 60 highest insured monthly salaries of the insured person within the insurance coverage.
3. Benefit payment: Old-age pension will be calculated and chose one based on the most advantageous method of the following:
   (1) Average monthly insurance salary ×insurance coverage years×0.775%+NT$3,000
   (2) Average monthly insurance salary×insurance coverage years×1.55%
4. Postponed pension: Insured persons who has more than fifteen years of insurance coverage and reach the claiming age of old-age pension but postpone their claim will receive an extra 4% for every year they postpone the pension with the upper limit of 20% extra.
5. Reduced pension: An insured person who has more than fifteen years of insurance coverage but does not reach the claiming age may claim old-age pension within five years in advance. However, 4% of the pension benefit amount will be deducted for each year in advance with the upper limit of 20% deduction.

【Survivors' pension】

1. Qualifications
   (1) Survivors of an insured person who becomes deceased during the insurance effective period.
   (2) Survivors of an insured person who was discharged from labor insurance and became deceased while collecting disability pension or old-age pension.
   (3) Survivors of an insured person who already has at least fifteen years of insurance coverage and conforms to the regulations defined in second paragraph of article 58, and became deceased before claiming old-age benefit.
   
   
2. Survivor's pension is payable to entitled survivor's in the following order: (1) spouse, son and/or daughter, (2) father and/or mother, (3) grandfather and/or grandmother, (4) grandson and/or granddaughter, (5) brother(s) and/or sister(s).
   
   
3. Survivor's qualifications:
   (1) The spouse should comply with one of the following criteria:
   A. The spouse should be more than 55 years of age and the conjugal relationship has existed for more than one year. However, the above regulation does not apply if the spouse is incapable of earning a livelihood or is raising children as stipulated in (2).
   B. The spouse should be more than 45 years of age and the conjugal relationship has existed for more than one year and the spouse's monthly income does not exceed the amount defined in the first level of Table of Grades of Insurance Salary.
   (2) The dependent children should comply with at least one of following criteria:
   A. Minority
   B. Incapable of earning a livelihood
   C. Under the age of 25, still goes to school, and monthly salary does not exceed the amount defined in the first level of Table of Grades of Insurance Salary
   (3) Parents and grandparents should be more than 55 years of age and monthly income from work does not exceed the amount defined in the first level of Table of Grades of Insurance Salary.
   (4) Grandchildren should be dependents of the insured person and comply with at least one of criteria in (2).
   (5) Brother(s) and/or sister(s) should be dependents of the insured person and comply with at least one of the following criteria:
   A. Minority
   B. Incapable of earning a livelihood
   C. Under the age of 25, still goes to school, and monthly salary does not exceed the amount defined in the first level of Table of Grades of Insured Salary
   
   
4. Average monthly insurance salary: Calculated based on the average of the 60 highest monthly insurance salaries of the insured person within the insurance coverage.
   
   
5. Benefit payment
   (1) In the event the insured person becomes deceased during the insurance effective period: 1.55% of the insured person's average monthly insurance salary is granted for every full insurance coverage year (average monthly insurance salary×insurance coverage years×1.55%)
   (2) In the event an insured person was discharged from labor insurance and becomes deceased while collecting disability pension or old-age pension, or already had at least fifteen years of insurance coverage and conforms to the regulations defined in second paragraph of article 58, and became deceased before claiming old-age benefit: Half of the total amount of the disability pension or old-age pension will be granted.
   (3) If the total amount calculated using the above mentioned formula is less than NT$3,000, then NT$3,000 will be granted to the survivors of the insured person.
   (4) Additional survivor's allowance: When there are 2 or more entitled survivors with the same priority, an extra 25% of the pension will be granted for each additional survivor. The maximum extra payment will be 50% of the standard payment.

• Source:Department of Labor Insurance
• Publication Date:2015-04-20
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