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Labor Welfare

  • Last updated:2021-10-18


How do business entities set up employee's welfare committee?

Application forms are available at the Labor Section (Bureau) of the local county or city governments. Fill out the forms and apply with the Labor Section (Bureau) of the local county or city governments.


Which business entities shall appropriate employee's welfare funds?

All factories, mines in the public and private sectors, or other banks, enterprises, organizations, farming and fishing range, and range farms hiring over 50 employees.


What are the principles of allocating the accumulated balance of employee's welfare funds?

Allocation of the accumulated balance of employee's welfare funds can be decided by the accountable units if the following qualifications are met:

  1. Balance of employee's welfare funds each year shall be incorporated with the next year's revenue budget and used to promote the next year's employee welfare items. Amount which has been approved for accumulation shall still be adopted by the Employee Welfare Committee and approved by the competent authorities before they can be allocated for utilization.
  2. Measures of the employee's welfare are comprehensive and effective.
  3. Balance of the previously allocated employee's welfare funds over 80% (amended to 60% now).
  4. Utilization of employee's welfare funds shall be legal, fair, universal, and effective.


Allocation scope, item and ratio of employees' welfare funds?

Allocation scope and item of employees' welfare funds:

  1. Supplementary items: wedding, funeral, events, childbirth, sickness, injury, emergency relief, emergency loan, disaster relief, etc.
  2. Educational allowance items: allowance for labor education, education allowance for children of labor.
  3. Leisure items: art events, club events, leisure travel, leisure facilities, etc.
  4. Other welfare items: allowance for major national holidays, group insurance, mortgage interest allowance, employee savings insurance, employee house purchase savings, day care and spouse care allowance, retired employee allowance, and other welfare benefits.

Allocation ratio of employees' welfare funds:

Allocation ratio for the abovementioned items is not restricted. However, the total allocated amount shall not exceed 100% of the total employee welfare fund revenue of that year.

Employee welfare allowance shall be issued to employees in cash and based on the principles of directness and universality. The amount shall not exceed 40% of the total employee welfare fund revenue of that year.

  • Source:Department of Employment Welfare and Retirement
  • Publication Date:2015-04-21
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