1. The Tainan City government hosts
a mass wedding ceremony at Yizai
Jincheng, or Eternal Fortress,
overlooking Anping Harbor. Built in
1874, the fortress is deemed an
auspicious site for the ceremony as
the expression yizai—literally
meaning “100 million years”—
is regarded as symbolic of eternal
love and devotion. (Liao Tai-ji)
13六校(indexed).indd 176 2011/10/18 1:24:44 AM
2. 13 Society
At a Glance
• Taiwan a leader in gender equality
• Pension schemes
• Boosting workers’ rights
T
aiwan’s population of some 23 million is graying, and its
fertility rate fell to 0.895 per woman in 2010, the lowest in
the world. Policy measures have been enacted to encourage
young people to marry and have children. Public pension
schemes offer a measure of economic security for the elderly, while a
variety of welfare services are provided to the disadvantaged.
Laws are in place to strengthen protection of children, the disabled,
low-income groups and workers, as well as to safeguard the rights of
women in the workplace. Programs are being implemented to help low-
income households recover from economic difficulties and become more
prosperous through education and vocational training. And a new
Cabinet-level agency tasked with promoting women’s rights is set to be-
gin operations in 2012.
Taiwan’s unemployment rate dropped to 4.27 percent as of the end of
May 2011, down from a high of 6.13 percent in 2009, due to a strong re-
bound from recession resulting from global economic turmoil.
177
13六校(indexed).indd 177 2011/10/18 1:24:45 AM
3. 13 Society
Human Rights Human Rights Day—President Ma es-
tablished the Presidential Office Human
Human rights and civil liberties in Rights Consultative Committee 總統府人權
Taiwan have advanced dramatically over 諮詢委員會, mandated to ensure that steady
the last two-plus decades since the lifting progress is made in implementing the
of martial law in July 1987. Under the terms of the covenants and in promoting
Constitution of the Republic of China, respect for human rights in general.
the nation’s citizens—numbering 23.16
Further underlining the importance
million as of the end of 2010—enjoy
the ROC places on advancing human
freedom of speech, press, assembly,
movement, residence and religious belief rights, in May 2011, the Legislative Yuan
as well as the political rights shared by enacted the Enforcement Act for the Con-
advanced democracies. vention on the Elimination of All Forms
of Discrimination against Women 消除對
Although in 1971 the ROC lost its
婦女一切形式歧視公約施行法 to ensure that
membership in the United Nations (of
which it is a co-founder), it has striven the ROC’s gender equality regulations
to embody the principles of various U.N. meet the highest standards.
human rights conventions. On March 31, In 2010, Taiwan was rated “free” for
2009, the Legislative Yuan (Legislature) the 13th consecutive year in U.S.-based
ratified the U.N. International Covenant Freedom House’s Freedom in the World
on Civil and Political Rights and the U.N. survey, while its political rights rating
International Covenant on Economic, So- moved up a notch in view of government
cial and Cultural Rights. That same day, actions taken to combat corruption. The
it passed legislation requiring all levels of U.S. State Department’s 2010 Country
governmental institutions and agencies to Reports on Human Rights Practices also
review laws, regulations, directives and recognizes that ROC citizens’ human
administrative measures within their re- rights are respected by their government.
spective spheres of authority with a view
Social Welfare
to bringing them into conformance with
the covenants.
The act was promulgated by President In 2010, central government expendi-
Ma Ying-jeou on April 22, 2009 and came tures on public welfare amounted to about
into force on December 10 of that year, NT$325.13 billion (US$10.28 billion). In
even though the U.N. Secretariat had 2011, 19.6 percent, or NT$346.29 billion
not accepted the instruments for deposit. (US$11.73 billion), of the central gov-
On December 10, 2010—International ernment budget, is earmarked for social
2010 Social Indices
Unit: ‰ unless otherwise indicated
Crude Crude Crude Crude Life expectancy (years) Labor force
b
irth rate death rate marriage rate divorce rate Men Women participation rate* (%)
7.21 6.30 6.00 2.51 76.15 82.66 58.07
*Percentage of working-age (16-65) people in an economy who are employed or seeking employment.
Sources: Ministry of the Interior; Council of Labor Affairs
178
13六校(indexed).indd 178 2011/10/18 1:24:45 AM
4. welfare, up 6.51 percent over the previous Protecting the rights and welfare of
year. The target groups may be summa- the nation’s children is the responsibil-
rized as follows. ity of the Child Welfare Bureau (CWB)
兒童局 under the Ministry of the Interior
(MOI), in coordination with local govern-
Children ment departments. In 2010, NT$5.50 bil-
Taiwan’s under-18 age group (referred lion (US$173.83 million) was budgeted
to herein as “children”) has been shrink- for child welfare programs under the
ing in recent years as birth rates have CWB, accounting for 7.53 percent of the
declined. At the end of 2010, children ministry’s social welfare programs.
accounted for 4.60 million or 19.85 per- Since 2007, an all-encompassing safety
cent of the general population, with those program has been implemented to protect
younger than 12 years of age making up children. The program covers protection
11.71 percent and those aged 12 to 17 from domestic violence and sexual abuse;
constituting 8.14 percent. ensuring safe school environments free of
To encourage child bearing and re- violence, drugs and gangs; enforcement of
duce the burdens of child rearing, parents rating systems for print media, television
with an annual pre-tax household income and Internet content; and ensuring the safety
below NT$1.5 million (US$50,830) are of food, toys and transportation vehicles.
entitled to a monthly child care subsidy A system for reporting and preventing
for each child below two years of age. child abuse has been established in line
All families, regardless of income, are with the Children and Youth Welfare Act
eligible to receive the monthly stipend for 兒童及少年福利法, the Domestic Violence
each child after the second. Prevention Act 家庭暴力防治法 and the
Moreover, a 2009 amendment to the Sexual Assault Crime Prevention Act 性侵
Employment Insurance Act 就業保險法 害犯罪防治法. The Children and Youth Wel-
entitles each parent of a newborn who is fare Act requires that persons and govern-
covered by employment insurance and ment agencies that have responsibility for
who elects to take unpaid parental leave children’s well-being must take immediate
to receive a monthly Employment Insur- action to protect them upon discovering
ance Fund 就業保險基金 allowance for up or being informed of any condition that
to six months. The allowance amounts endangers their well-being. The system in-
to 60 percent of one’s average insured cludes 24-hour hotlines, medical treatment
monthly salary during the last six months and protective placement, and assistance
before taking leave. by police and prosecutorial authorities. As
Since January 1, 2009, subsidies have of 2010, there were about 115 public and
been available for medical treatment of private placement institutions nationwide
children under the age of 18 belonging to with the capacity to accommodate up to
households in the low- and lower-middle- 4,500 children.
income brackets (see “Disadvantaged Other legal protections for children
Households” section for definitions). In can be found in the Criminal Code of the
addition, children whose basic living needs Republic of China 中華民國刑法, which
are jeopardized are entitled to receive requires lengthy prison sentences for
emergency subsidies for up to six months adults who engage in sexual intercourse
at a time, while mentally or physically with children under 16; the Child and
challenged children can also receive aid Youth Sexual Transaction Prevention Act
for early treatment and education. 兒童及少年性交易防制條例, which stipulates
179
13六校(indexed).indd 179 2011/10/18 1:24:46 AM
5. 13 Society
imprisonment, detention and fines for care for the elderly a pressing public
policy issue.
commercial transactions involving sexual
exploitation of minors under the age of The Senior Citizens Welfare Act 老人福
18; and the Labor Standards Act 勞動基準 利法 addresses the rights and welfare of the
法, which stipulates that workers under 16 elderly, providing for an annuity system to
years of age shall be considered as child safeguard the financial security of elderly
workers and that no child worker shall people, as well as living subsidies and
work over eight hours a day or be permitted special care allowances for financially dis-
to do heavy or hazardous work. advantaged senior citizens, and requiring
that a survey of their living conditions be
conducted and published every five years.
The Elderly The act stipulates that offspring or con-
Taiwan became an aging society as tractual welfare institutions that mistreat,
defined by the World Health Organiza- abuse or abandon elderly people are sub-
tion when its elderly population (65 or ject to fines; that their names be published;
older) crossed the 7-percent threshold in and that individual offenders attend family
1993. At the end of 2010, 10.74 percent education courses.
of the population (or 2.49 million people) In 2007, the MOI initiated a long-
were elderly, and the old-age dependency term care system with a budget of
ratio—the ratio of elderly people to the US$2.47 billion to be spent over 10 years
work force under 65—stood at 14.59 on providing round-the-clock nursing to
percent. According to the Council for senior citizens (see Chapter 14, “Public
Economic Planning and Development 行 Health”). Under the program, the MOI
政院經濟建設委員會, Taiwan’s elderly will allocates funds to local governments for
amount to more than 40 percent of the the provision of day care and home care
population by 2060, making long-term for the elderly and for setting up support
Outdoor
recreational
activities help
the elderly keep
fit and enjoy
peace of mind.
In Taiwan,
elders playing
xiangqi,
a traditional
Chinese form
of chess,
is a common
scene in
the parks.
180
13六校(indexed).indd 180 2011/10/18 1:24:48 AM
6. centers that teach nursing skills to family and access to public recreational and sce-
members and professional caregivers. nic spots, subsidies for medical expenses
Other services provided include free and social insurance premiums, prefer-
health checkups and influenza vaccina- ential loans, and vocational guidance and
tions; discounts on public transportation training. Disabled persons are entitled to
and access to cultural and educational fa- an income-tax deduction of NT$104,000
cilities; day care and home care services; (US$3,524), while disabled students enjoy
lifelong learning programs and social tuition reductions ranging from 40 to 100
activities; and free meal delivery. percent, depending on the severity of their
As of the end of 2010, 1,462 publicly disabilities. They are exempt from tuitions
and privately funded care centers with if the annual income of the household to
a combined capacity of nearly 94,100 which they belong is less than NT$2.2 mil-
people were providing institutional care lion (US$74,551).
services to the elderly. Senior citizens in Other financial support for the disabled
low-income and lower-middle-income includes monthly National Pension pay-
households who are not receiving insti- ments (see “National Pension” section)
tutional care are granted monthly living and, for those in low- and lower-middle-
allowances of NT$6,000 (US$203) and income households, monthly living allow-
NT$3,000 (US$102), respectively. A ances ranging from NT$3,000 (US$102)
monthly average of 119,279 persons re- to NT$7,000 (US$237). In addition, those
ceived such subsidies in 2010. who reside in caregiving facilities are
In addition, local governments pro- subsidized up to NT$20,000 (US$678)
vide a monthly special care allowance of per month, depending on their household
NT$5,000 (US$169) to low- and lower- income and degree of disability.
middle-income households taking care of The People with Disabilities Rights
elderly persons unable to perform basic Protection Act 身心障礙者權益保障法 re-
activities of daily living. In 2010, 7,862 quires that disabled persons constitute at
households received such subsidies. They least 1 percent of the work force at private
also received subsidies for hospital care enterprises with 67 or more employees,
and denture implants. and at least 3 percent of the work force at
government offices, public schools and
state enterprises with 34 or more em-
The Disabled ployees. Employers can receive monthly
As of 2010, over 1.08 million people, or reimbursements of between NT$10,000
4.65 percent of Taiwan’s population, were (US$339) and NT$12,000 (US$407) for
registered as disabled. A variety of public and each disabled person they employ who is
private institutions serve people with specific referred by a public job placement center.
disabilities, including vision, hearing and Persons with disabilities participating in
speech impairments, autism, drug-resistant government-run or government-commissioned
epilepsy, chronic psychosis and severe facial vocational training programs can receive
damage. Services provided range from long- allowances equal to 60 percent of the
term nursing care to training and develop- nation’s minimum monthly wage for up
ment programs. As of 2010, there were 276 to one year. Disabled persons serving in-
institutions licensed to provide caregiving ternships at government agencies, public
services to nearly 23,500 disabled. enterprises and private companies receive
The physically challenged enjoy tax ex- monthly subsidies of up to NT$8,000
emptions, free-of-charge public transportation (US$271) for up to six months.
181
13六校(indexed).indd 181 2011/10/18 1:24:48 AM
7. 13 Society
Indigenous Groups percent if they have passed an indigenous
language proficiency test. The CIP has
Needs and concerns of Taiwan’s in-
digenous peoples (see Chapter 2, “People allocated 1,450 scholarship awards and
and Language”), who constitute approxi- 1,894 work-study grants each semester
mately 2 percent of the total popula- for indigenous college students based on
tion, are addressed by the Cabinet-level their academic achievements, with no
Council of Indigenous Peoples (CIP) 行 limit, however, on the number of work-study
政院原住民族委員會 and various local gov-
grants available per semester for those
ernment departments. The Indigenous belonging to low-income households. Ten
Peoples Basic Act 原住民族基本法 obli- full scholarships are also awarded each
gates the central government to provide year to indigenous students for overseas
resources to help indigenous groups gov- studies, while a US$400 monthly liv-
ern their own affairs, formulate policies ing stipend is provided to those studying
to protect their basic rights, and promote abroad without government scholarships.
the preservation and development of A special civil service examination is also
their languages and cultures. held for indigenous citizens.
The Indigenous Peoples Employment
Rights Protection Act 原住民族工作權保 Farmers
障法 stipulates that indigenous peoples As of 2010, the Farmers’ Health Insur-
should make up at least 1 percent of the ance (FHI) 農民健康保險 program covered
work force at government agencies, pub- about 1.51 million farmers. Adminis-
lic schools and state enterprises with 100 tered by the MOI and local government
or more employees, and at least one-third agencies, it provides coverage to all peo-
of the work force if these agencies are lo- ple 15 years of age or older who engage
cated in indigenous communities. in agricultural work for more than 90
To boost indigenous peoples’ employ- days a year, or those who are members of
ment opportunities, a monthly subsidy a farmers’ association.
of NT$10,000 (US$339) is offered to The program includes cash benefits
employers for each indigenous person for disability, maternity and funeral ex-
employed; individuals may receive public penses. Farmers aged 65 and older are en-
support for vocational training, legal as- titled to a monthly pension of NT$6,000
sistance in case of labor disputes and low- (US$203) so long as they have been in-
interest loans for business start-ups. Other sured under the FHI for over six months
services provided include living allowances and are not receiving pension payments
for indigenous senior citizens; subsidies from other social insurance programs.
for preschool day care and nursery care;
emergency assistance; tuition subsidies,
scholarships and work-study grants; in- Disadvantaged Households
digenous community health services; and In accordance with the Public As-
subsidies for National Health Insurance sistance Act 社會救助法, the MOI together
premiums and medical treatment. with local government agencies imple-
Low-interest housing loans and rent ments programs that provide assistance
subsidies are provided to low- and lower- to disadvantaged households. Designed
middle-income indigenous households. and administered for the most part
The senior high school and university by local governments based on their
entrance exam scores of indigenous stu- regional needs, these programs encom-
dents are increased by 25 percent, or 35 pass a diversity of financial and practical
182
13六校(indexed).indd 182 2011/10/18 1:24:48 AM
8. services addressing particular needs. Some average monthly disposable income in
provide relatively long-term aid, while others the region. In 2011, the average ranged
provide short-term aid in emergency situa- between a little over NT$7,900 (US$268)
tions. An important goal of such programs for the Kinmen 金門 and Matsu 馬祖 is-
is through education and other measures lands to nearly NT$14,800 (US$502) for
helping recipients of public assistance be- Taipei City 臺北市.
come financially independent. In accordance with amendments to
Besides outlining the range of serv- the Public Assistance Act that came into
ices that may be supported through force on July 1, 2011, lower-middle-
central government funding and that local income households have also become eli-
governments should strive to provide for gible for assistance. Such households are
their constituencies, the Public Assistance defined as those which have a monthly
Act stipulates the qualifications of public average per-member gross income of less
assistance recipients. Only those with low than 1.5 times the monthly minimum
and lower-middle income are eligible. living expense standard of the region in
Low-income households are defined which they live. The MOI estimates that
as those whose monthly average per- following this relaxation of restrictions,
member gross income is less than the a total of 312,000 households compris-
monthly “minimum living expense stand- ing 852,000 people, or 3.7 percent of the
ard” of the region in which they reside, population, were eligible for assistance
as calculated by the Directorate-General under the diverse programs that apply to
of Budget, Accounting and Statistics, their individual circumstances.
Executive Yuan (DGBAS) 行政院主計處 Launched in August 2008 in coordina-
in cooperation with local governments. tion with local government social service
The minimum living expense for a given providers, the MOI’s Immediate Assistance
region is defined as 60 percent of the Program 馬上關懷急難救助 provides short-term
With government
assistance, disad-
vantaged house-
holds or groups,
such as these
indigenous Bunun
people of Namaxia
Township in
Kaohsiung City,
are able to
start up culturally
oriented businesses.
183
13六校(indexed).indd 183 2011/10/18 1:24:54 AM
9. 13 Society
2010 Minimum Living
Expenses Standard
pursuing higher education may receive
tuition subsidies of NT$10,000 (US$339)
per semester and child care subsidies of
Administrative Area NT$ up to NT$4,800 (US$163) per month.
Taipei City 14,794 Single parents attending senior high
Kaohsiung City 10,033 school may receive similar subsidies,
New Taipei City 10,792 though with a lesser amount.
Taichung City 9,945 A housing subsidy program effec-
Tainan City 9,829 tive since February 2009 targets young
Kinmen & Matsu 7,920 newlywed couples who rent or buy a
Rest of Taiwan 9,829 residence. In 2010, the program provided
some 15,000 qualifying couples with a
Source: Ministry of the Interior rental subsidy of NT$3,600 (US$115) a
month for up to two years, and 20,000
qualifying couples with home loans of
emergency living subsidies and practical NT$2 million (US$63,210) that are inter-
relief to low- and lower-middle-income est free for the first two years. Applicants
households as well as to households whose for such subsidies or loans must be lower-
well-being is threatened by the recent middle-income earners aged 20 to 40
death, disappearance, unemployment, se- who married within two years of the date
vere injury or illness of their chief income of application. Married couples aged 20
earners. Emergency aid ranging between to 45 in the lower-middle-income bracket
NT$10,000 (US$339) and NT$30,000 with children under 20 years of age are
(US$1,017) is provided along with a variety also eligible for interest-free home loans.
of welfare services. From the program’s
inception through the end of 2010, a total
of NT$1.52 billion (US$51.5 million) was Women
expended on such emergency relief.
At the central government level, the
The Act for Assisting Families in Committee of Women’s Rights Promotion
Hardship 特殊境遇家庭扶助條例 stipulates 婦女權益促進委員會 under the Executive
that single parents of families whose basic Yuan and the MOI’s Domestic Violence
needs are not being met due to extraordi- and Sexual Assault Prevention Committee
nary contingencies shall be provided with 家庭暴力及性侵害防治委員會 have heretofore
subsidies encompassing a wide variety of shared the main responsibility for promot-
emergency conditions, including payments ing gender equality. The MOI-supported
for daily living costs, health care, chil- Foundation of Women’s Rights Promotion
dren’s education, legal expenses and inter- and Development 婦女權益促進發展基金會
est payments on business start-up loans. also plays a key role in advancing gender
Under the act, a total of 20,879 households equality, with its Taiwan Women’s Center
received funding amounting to NT$478.61 臺灣國家婦女館 promoting Taiwan’s par-
million (US$16.22 million), up 17 percent ticipation in global discourse on gender
over the previous year. equality. A Cabinet-level agency tasked
Tuition and child care subsidies are with promoting gender equality and safe-
provided to low- and lower-middle-income guarding women’s rights is to be estab-
single parents with dependents under lished in 2012 as the executive branch of
18 years of age to help them advance the central government is restructured (see
their knowledge and skills. Single parents Chapter 4, “Government”).
184
13六校(indexed).indd 184 2011/10/18 1:24:55 AM
10. On March 7-8, 2011, the MOI con- In 2010, approximately 50 percent
vened the first-ever National Women’s of working-age women were employed
Forum in Taipei City, attended by repre- or actively seeking work. To ensure that
sentatives of women’s rights organiza- they receive fair treatment, the Gender
tions, academia, and central and local Equality in Employment Act 性別工作平等
governments. The conference focused on 法 was promulgated in 2002 and has been
formulation of a comprehensive new set amended several times since then, most re-
of guidelines for promoting gender equal- cently in January 2011. The act stipulates
ity society-wide. It had been preceded by that all employees regardless of gender or
38 preliminary symposiums conducted sexual orientation shall enjoy equal rights
around the country to publicize the proj- at their places of employment, and that the
ect and solicit suggestions for the guide- principle of equal pay for equal work shall
lines’ content. The draft version, which be respected.
incorporates input from these earlier Further, the act forbids termination
meetings, comprises seven chapters cov- of employment because of employees’
ering employment, health, medical care, pregnancy or marriage. It also stipulates
marriage, political participation, welfare female employees’ right to take eight
and prevention of domestic violence. weeks of paid maternity leave and five
Though not a member of the United days to four weeks of paid leave in cases
Nations, the Legislative Yuan on May 20, of miscarriage. Employers who commit
2011 passed legislation that makes the gender discrimination or fail to set up
provisions of the U.N. Convention on the mechanisms to prevent sexual harassment
Elimination of All Forms of Discrimina- in the workplace are subject to fines of up
tion Against Women “law of the land” to NT$500,000 (US$16,943).
in the ROC. Earlier, in January 2011,
For women who wish to start a small
the DGBAS released an assessment of
business, the Council of Labor Affairs (CLA)
Taiwan’s social development based on
行政院勞工委員會 provides start-up loans that
analytical methodology employed in
are interest-free for the first two years.
the United Nations Development Pro-
gramme’s (UNDP) Human Development
Report published in November 2010, Labor
including a Human Development Index
(HDI) and a Gender Inequality Index Taiwan has a diversified work force
(GII). The GII assesses gender inequality of around 11 million people. Accord-
in three categories—reproductive health, ing to the 2010 Labor Force Evaluation
empowerment and employment—and Measure report issued by U.S.-based
features five statistical indicators con- Business Environment Risk Intelligence,
cerning maternal mortality, adolescent Taiwan ranks third in the world for
fertility, parliamentary representation, quality, next only to Singapore and the
educational attainment at secondary and United States. The unemployment rate
higher levels, and labor force participa- at the end of May 2011 stood at 4.27
tion. According to the DGBAS’s find- percent, compared with an average rate
ings, had Taiwan been included in the of 5.21 percent in 2010. And the legally
UNDP survey, it would have had the mandated minimum monthly wage was
18th-best HDI score and the 4th-best GII raised from NT$17,880 (US$606) to
score. Among Asian countries, it would NT$18,780 (US$636) in September
have had the best GII score. 2011, effective January 1, 2012.
185
13六校(indexed).indd 185 2011/10/18 1:24:55 AM
11. 13 Society
households and people between the ages
of 45 and 65.
According to CLA data, as of the end
of 2010, nearly 380,000 foreign contract
workers (virtually all nationals of South-
east Asian countries) were employed in
Taiwan as factory workers or caregivers.
Like ROC nationals, they are protected by
the Labor Standards Act, while amend-
ments to the ESA allow foreign nationals
to be hired as advisors or researchers by
government agencies and their affiliated
institutions without being required to ap-
ply for a work permit. The same applies
to lecturers or researchers of foreign na-
tionality hired by colleges and universities
for up to six months as well as foreigners
married to ROC nationals.
The Employment Insurance Act 就
業保險法 stipulates that involuntarily un-
employed workers under 45 years of age
can receive 60 percent of their average
insured salary of the last six months of
employment for up to six months. Re-
To reduce cost, more and more firms in cent amendments to the act allow such
Taiwan are outsourcing labor or using
part-time workers or agency temps. Short-
unemployment payments to be extended
term employment is particularly common for up to 12 months during times of eco-
in the construction business. nomic recession. Meanwhile, the National
Health Insurance 全民健康保險 premiums
of involuntarily unemployed workers and
their dependents are paid by the CLA’s
Workers’ Rights Bureau of Labor Insurance (BLI) 行政院勞
Among several laws designed to pro- 工委員會勞工保險局.
tect workers, the Labor Standards Act The Labor Safety and Health Act 勞工安
delineates the rights and obligations of 全衛生法 prohibits women and those under
employees and employers, prescribes the the age of 16 from working in hazardous
minimum provisions of labor contracts, environments. It also requires companies
and stipulates standards concerning wages, with more than 300 employees, or businesses
work hours, leave and employment of with more than 100 workers engaged in po-
women and persons under the age of 16. tentially hazardous operations, to maintain
Meanwhile, the Employment Services an on-site medical clinic.
Act (ESA) 就業服務法 demands equal ac- The Sexual Harassment Prevention
cess to job opportunities and employment Act 性騷擾防治法 requires governments to
services, regulates public and private establish sexual harassment prevention
employment service agencies and encour- committees. Organizations with over 10
ages employment of people with disabili- employees are required to set up a chan-
ties, indigenous peoples, female heads of nel for filing and dealing with complaints,
186
13六校(indexed).indd 186 2011/10/18 1:25:02 AM
12. National Pension vs. Labor Insurance Annuity
Category National Pension Labor Insurance Annuity
Premium 6.5% - 12%; 7.5% - 13%;
7% in the third year with 7.5% for the first two years with annual
increases of 0.5% every two years increases thereafter of 0.5% up to 10%; followed
by biennial increases of 0.5% up to 13%
Insured Fixed insured amount based on the Based on one’s insured salary:
salary/amount nation’s minimum monthly wage From Grade 1 (NT$18,780)* to Grade 22
(NT$18,780)* (NT$43,900)
Share of Insurant 60% Employer 70%
contributions Government 40% Employee 20%
Government 10%
Insurance Monthly annuity payments for Payments for maternity, sickness and injury;
benefits •• Disability; Monthly annuity or lump sum payments for
•• Old-age pension; or •• Disability;
•• Death benefits paid to qualifying •• Old-age pension; or
survivors •• Death benefits paid to qualifying survivors
Standards of Old-age pension: Old-age pension:
payment Either Either
Insured amount × number of Insured salary × number of insured years ×
insured years × 1.3% 1.55%
or or
Insured amount × number of in- Insured salary × number of insured years ×
sured years × 0.65% + NT$3,000 0.775% + NT$3,000
whichever is more favorable to whichever is more favorable to the insurant
the insurant
Disability pension: Disability pension:
Insured amount × number of Insured salary × number of insured years ×
insured years × 1.3%; 1.55%; minimum NT$4,000 per month;
minimum NT$4,000 per month an additional subsidy of 25% for each
dependent, either a spouse or child, for a
maximum of 50%
Death benefits paid to qualifying Death benefits paid to qualifying survivors:
survivors: Insured amount × number of insured years
Either × 1.55%; minimum NT$3,000 per month
Insured amount × number of
insured years × 1.3%
or
50% payment for survivors of
old-age or disabled pensioners
Death benefits (funeral subsidy): Death benefits (funeral subsidy):
Monthly insured amount × 5 Monthly insured amount × 5
Age at start 65 (fixed) 60 (nominally)
of payment Having worked for 15 years, a worker can
choose to retire as early as age 55 or as late
as age 65, incurring a 4-percent decrease or
increase in payment, respectively, for each year
before or after age 60 that retirement is chosen.
*Effective January 1, 2012
187
13六校(indexed).indd 187 2011/10/18 1:25:03 AM
13. 13 Society
while those with more than 30 employees
must implement measures against sexual
receive monthly payments, but must with-
draw their funds in one lump sum.
harassment and ensure that employees are Under the revised Labor Insurance
aware of them. Act 勞工保險條例, workers insured under
The primary legal framework for the previous labor insurance scheme
labor-management relations and dispute can choose to receive annuity payments
settlement is provided by three laws: the monthly until they pass away or to collect
Labor Union Act 工會法, the Collective a lump sum, while workers insured after
Bargaining Agreement Act 團體協約法 and January 2009, when the Labor Insurance
the Settlement of Labor-Management Annuity (LIA) scheme 勞保年金制度 was
Disputes Act 勞資爭議處理法. These laws implemented, can only receive monthly
protect the right of private-sector workers annuity payments.
to form labor unions and to utilize a vari- The advantages of the monthly annu-
ety of arbitration mechanisms to resolve ity system are that it facilitates lifelong
labor-management disputes. They further financial security and avoids the risk
call for provision of subsidies to cover that the value of a lump sum payment
workers’ legal expenses in litigation aris- might be eroded by inflation. Retirees
ing from work-related injuries or alleged are reminded that choosing to collect
improper dismissals. Amendments to the monthly annuity payments would, over
three laws that came into force simultane- eight years’ time, result in receiving
ously on May 1, 2011 have expanded the an aggregate amount equivalent to the
scope of labor union organization to allow lump sum.
teacher participation, and have clarified Like the aforementioned Labor Pension
the conditions for launching legal strikes. system, the LIA program is administered
However, teachers are still not permitted to by the BLI. Labor insurance premiums
strike in consideration of students’ right paid by employers and employees are
to education. summarized in the table “National Pension
vs. Labor Insurance Annuity.” Qualified
Labor Pension beneficiaries can receive payments under
both programs simultaneously.
The Labor Pension Act 勞工退休金條例
allows workers to join the Labor Pension
program administered by the BLI. The National Pension
program features a portable individual
retirement account into which succes- The National Pension Act 國民年金
sive employers pay monthly premiums 法, passed by the Legislative Yuan in July
amounting to at least 6 percent of their 2007, stipulates that any citizen aged 25
employees’ monthly wages, while em- to 65 who is not covered by social in-
ployees may elect to contribute up to 6 surance programs for laborers, farmers,
percent of their salary to the fund. Per- members of the military, civil servants
sons who reach the age of 60 after having and teachers shall be covered by the Na-
participated in the program for at least tional Pension system. By covering the
15 years are eligible to begin receiving unemployed, non-working spouses and
monthly labor pension payments even if freelancers, among others, the scheme
they elect to continue working. People ensures that the vast majority of citizens
who wish to receive pension payments af- receive regular, lifelong pension benefits.
ter age 60 but having worked for less than The National Pension system went
15 years since joining the program cannot into effect in October 2008. As of the
188
13六校(indexed).indd 188 2011/10/18 1:25:03 AM
14. end of 2010, 3.87 million people had of the program’s implementation are
been covered by the program. Insurants exempt from paying premiums but re-
reaching the age of 65 receive monthly ceive monthly payments of NT$3,000
pension payments for the rest of their (US$102) until death. Low-income and
lives. The pension amount depends on severely disabled insured persons pay
the amount of premiums paid over the no insurance premiums, while different
years (see table “National Pension vs. levels of premium subsidy, ranging from
Labor Insurance Annuity”). The el- 55 to 70 percent, are provided to less
derly who were already 65 at the time disadvantaged individuals.
l Ministry of the Interior: http://www.moi.gov.tw
Related l Committee of Women’s Rights Promotion: http://cwrp.moi.gov.tw
Websites l Council of Indigenous Peoples: http://www.apc.gov.tw
l Council of Labor Affairs: http://www.cla.gov.tw
l National Immigration Agency: http://www.immigration.gov.tw
189
13六校(indexed).indd 189 2011/10/18 1:25:04 AM