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Legislator suggests government improve labor pension

Legislator suggests government improve labor pension

Taipei, Aug. 5 (CNA) Legislator Lin Kuo-cheng (???) suggested Wednesday that the government should revise the Labor Pension Act to provide fairer compensation for employees and security for retired seniors. In a written statement, Lin said he carefully studied the existing Labor Pension Act and found some loopholes that put people who retire at the age of 65 at a disadvantage relative to those who retire at age 50. Under the Labor Pension Act, the lump sum retirement payment option pays two months of a person's insured monthly salary amount for each of the first 15 years of service and one month of a person's insured salary amount for each year of service exceeding 15 years. The maximum payment is 45 months, meaning that somebody who has worked and been enrolled in the labor insurance system for 30 years is eligible for the maximum payout, even if the individual retires at the age of 50, Lin said. Lin suggested that for those workers who have worked for at least 30 years and continue to work after 60 until the age of 65, the maximum payout should be 50 months of the insured salary level. He urged the Ministry of Labor to review the existing practice and draft a revision of the Labor Pension Act. The insured salary level is the monthly salary amount the company registers for each employee on which labor insurance premiums are calculated. The maximum salary that can be registered is NT$43,900 a month, regardless of an employee's actual income. The monthly insured salary used to calculate a person's lump sum pension is the average salary registered for labor insurance purposes over the last five years of a person's employment. The KMT-affiliated lawmaker also pointed out that in terms of the share of GDP used to compensate employees, Taiwan lags far behind the United States, Japan, and South Korea. In addition, over the past 10 years, the nation's economic growth averaged 3.97 percent, but salaries have only grown about 0.7 percent a year on average, he said. He called on the Ministry of Labor to provide more security to workers, recognizing the reality that workers have not received a fair share of the added wealth created in Taiwan over the past decade. (By S. F. Wang and Lillian Lin)


Updated : 2021-09-28 15:23 GMT+08:00