As an expat starting a business in Taiwan, navigating the intricacies of insurance can be overwhelming. This guide aims to provide self-employed persons, employers, and business owners, especially foreigners with a clear and concise guide to labor insurance and national health insurance (NHI) in Taiwan.
Key Takeaways
Q: Am I required to insure labor insurance in Taiwan?
While employees are mandatory participants in the labor insurance program, employers (company owners) are eligible for voluntary coverage.
Q: What is the amount I have to pay for the labor insurance?
The minimum insured monthly amount for labor insurance starts from NTD 27,470 (effective January 1, 2024). Please note that if you choose to enroll in your company's labor insurance plan, the insured amount cannot be lower than the highest grade declared by any of your employees.
For example: One of your employees is insured for NTD 28,800 of labor insurance. Then, as an employer, you cannot be insured for an amount lower than this grade if you are insured in the same company.
Q: What is the amount I have to pay for the national health insurance?
If your company has fewer than 5 employees (0-4 people), the minimum insured monthly amount for employers is NTD 38,200 (effective January 1, 2024). If your company has more than 5 employees, the amount comes to NTD 45,800.
Labor Insurance: Mandatory for Employees, Optional for Employers
As an employer, you are not obligated to participate in labor insurance. However, it is a mandatory requirement for all employees. This scheme provides your workforce with financial protection in case of work-related accidents, injuries, or illnesses.
Minimum Insured Amount: The insured amount for labor insurance is based on your monthly salary. The minimum insured monthly amount currently set at NTD 27,470 (effective January 1, 2024). However, if you choose to enroll in your company's labor insurance plan, the insured amount cannot be lower than the highest grade declared by any of your employees.
Enrollment Options: If you have no employee in the early stage of business, you can initially be insured your labor insurance through a "craft union/ occupational union". Once you have hired an employee, you can transfer your labor insurance coverage to your company. Alternatively, if you have a full-time job elsewhere, you can be insured as an employee through that company.
The labor insurance is shared between the employer and the employee. Please refer to the table below for more details on premium calculations and employer/employee contribution ratios:
Applicable to employers or self-employed:
Applicable to employees working in public or private enterprises:
Related tables please visit Bureau of Labor Insurance, Ministry of Labor for more resources.
National Health Insurance: Mandatory for Everyone
Unlike labor insurance, national health insurance (NHI) is mandatory for all Taiwanese citizens and foreign residents with an ARC, regardless of employment status. This program provides comprehensive healthcare coverage for individuals and their dependents.
Establishing an Insurance Unit: As a company owner, you must establish an insurance unit and enroll in NHI in your company, unless you are employed and insured in the other company.
Minimum Insured Amount: The minimum insured amount for NHI depends on the number of employees in your company:
Less than 5 employees | NTD 38,200 (effective January 1, 2024) |
5 or more employees | NTD 45,800 |
Similar to labor insurance, national health insurance is shared between the employer and the employee. You can find detailed information regarding premium calculations and employer/employee contribution ratios on the NHI website.
Applicable to employers or self-employed:
Applicable to employees working in public or private enterprises:
Note: the information provided above is up-to-date as of January 2024. It is important to keep in mind that the amounts and standards for labor insurance and national health insurance premiums are subject to change every year. To obtain accurate information, it is recommended to always visit the official websites.
Additional Tips:
Consult with a CPA or accountant familiar with Taiwan's insurance system for tailored advice.
Start planning and researching insurance options well before starting your business.
Remember to comply with all regulations and deadlines for enrollment and premium payments.
Be aware of potential changes in insurance policies and adjust your plans accordingly.
By understanding these key points, expats can navigate the complexities of Labor and National Health Insurance in Taiwan and ensure they are adequately protected for their business venture.
Copyright © 2023 by Del Sol CPA Services
Comments