Thursday’s Executive Yuan meeting passes a draft amendment to Labor Pension Act that would make foreigners who have gained permanent residence in Taiwan eligible for the new labor pension plan.
The draft amendment will soon be sent to the Legislature for review and legislation, the Executive Yuan said.
Executive Yuan spokesman Hsu Kuo-yung quoted Premier Lin Chuan as saying that the push for the passage of the amendment is aimed at establishing a friendly working environment that is attractive to foreign professionals.
Hsu said the premier had asked the Ministry of Labor to begin talking with legislators and seek their support for the legislation of the draft amendment.
The new labor pension plan enacted in July 2005 requires employers to deposit an additional amount of six percent of each employee’s salary into his or her labor pension account every month, Department of Employment Welfare and Retirement Director Sun Pi-hsia said, adding that currently 6.32 million private sector workers receive the deposits in their accounts.
She said the plan to extend the new labor pension eligibility to foreign nationals working in Taiwan with permanent residence is aimed to guarantee their retired life and help keep them in Taiwan.
As of September 2016, there were 12,682 foreigners with permanent residence in Taiwan.
Sun said the draft amendment also raises the fine for any private sector employer who evades paying pensions or severance pays to between NT$300,000 and NT$1.5 million.