Employment Insurance in Taiwan
Employment insurance is compulsory in Taiwan for both employers and employees. It forms an integral part of the country’s social security system aimed at providing support to workers who face unemployment due to various reasons such as layoffs, company closures, or economic downturns.
| Type of Insurance | Employer Contribution | Employee Contribution | Government Contribution |
| Labour Insurance | 70% | 20% | 10% |
| National Health Insurance | 60% | 30% | 10% |
| Labor Retirement Funds | 100% | 0% | 0% |
Contribution Rates
The contribution to employment insurance in Taiwan is shared among employers, employees, and the government. Contributions are calculated based on the employee’s salary, reflecting a shared responsibility for creating a sustainable social security system.
Significance of Employment Insurance
Employment insurance plays a crucial role in Taiwan’s social welfare framework:
- Financial Protection: Provides a safety net for workers who involuntarily lose jobs, offering financial assistance during unemployment.
- Stability and Confidence: Encourages workers to feel secure in their jobs.
- Labour Market Flexibility: Promotes flexibility by allowing workers to pursue new opportunities or retrain for different careers.
- Social Cohesion: Ensures all workers have access to unemployment benefits, fostering social cohesion and reducing inequality.
Health Insurance in Taiwan
Taiwan’s National Health Insurance (NHI) system is a single-payer system that covers all residents. The NHI provides comprehensive healthcare coverage, including:
- Medical Services: Outpatient and inpatient services, dental care, and traditional Chinese medicine.
- Preventive Care: Immunisations, screenings, and health education.
- Prescription Drugs: Coverage for a wide range of medications.
The NHI system is funded through premiums paid by employers, employees, and the government, ensuring that healthcare is accessible to everyone.
Labour Insurance
Labour insurance provides protection against occupational injuries, illnesses, and death. It includes benefits such as:
- Medical Benefits: Coverage for treatment of work-related injuries and illnesses.
- Disability Benefits: Financial support for employees who suffer from long-term disabilities due to work-related incidents.
- Survivor Benefits: Compensation to the family members of employees who die as a result of work-related accidents.
Labour Retirement Funds
Taiwan’s labour retirement fund system ensures that employees have financial security in their retirement years. Employers contribute a percentage of the employee’s salary to the fund, which accumulates over the course of their career.
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Taiwan’s comprehensive insurance system provides a robust safety net for employees, ensuring financial protection and access to essential services. By understanding the various components of this system, including employment insurance, national health insurance, labour insurance, and labour retirement funds, individuals and businesses can better navigate their responsibilities and benefits. This system plays a crucial role in promoting social stability and economic resilience in Taiwan.
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Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Taiwan employment laws and regulations, please visit the official governmental websites.
Updated on: 8th August 2024
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