Welfare and Retirement Benefits In Taiwan
All companies with 50 or more workers must establish funds for employees' welfare. When an enterprise is founded, 1 ~ 5% of its registered capital must be set aside for the fund, and amounts equal to 0.05 ~ 0.15% of monthly revenues must be added periodically. Deductions of 0.5% from each employee's wage (including any subsidies or special allowances) must be paid in, as well as 20 ~ 40% of the proceeds from any plant-waste and sweepings sales.
Welfare funds must be devoted to providing mess halls, housing, clinics, reading rooms, bathrooms and similar amenities, or to setting up training, recreational and educational facilities for workers and their families.
The Labor Standards Law established separate funds under joint labor/management control for pensions, settlement of outstanding wages and wage arrears. Retirement pensions are set at two months' wages for each year of service, with a ceiling of 45 months' wages. Pensions must be paid in a lump sum unless special exemption is granted by the authorities. The government collects some NT$30 billion annually in retirement reserve funds. Employers covered by the law (10.2) contribute a maximum of 0.1% of workers' wages to the outstanding-wage settlement fund each month; in addition, they must set aside 0.05% of the firm's total insured value for use as back-pay clearance funds.
The normal retirement age is 60 for all workers except miners, who retire at 55. Those covered by the 1984 Labor Standards Law are entitled to retire after 25 years' employment by the same company (15 years for those over age 55).