Old Scheme Pension Contribution
Despite new scheme pension was launched on year 2005 and it covers the majorities of workers’ life after retirement, some workers are still covered by the old scheme pension. Followings is the comparison of two pensions.
Comparison of the Old scheme and New Pension Systems
Topic | Labor Standards Act Pension System (Old scheme Pension) | Labor Pension Act (New System) |
Level of Contributions | 2% to 15% of a worker’s monthly wage is to be deposited in a pension reserve fund | Employer must contribute at least 6% of worker’s monthly wage; Workers voluntarily contribute maximum 6% to their pension accounts |
Target Group | Workers subject to the Labor Standards Act | Workers to whom the Labor Standards Act applies (Taiwanese citizens; foreign spouses; spouses from mainland, Hong Kong, or Macau; and permanent resident foreigners) |
Conditions for receiving pension payments | Work seniority of 25 years or having worked 15 years and reached 55 years of age or having worked 10 years and reached 60 years of age | Reach the age of 60, regardless of working or retired; if deceased before reaching 60, family survivors or designated beneficiaries may claim |
Standards of benefits | [(1-15 years) x 2 units + (16 th year – x year) x 1 unit] ≤ 45 units 1 unit=one average monthly wage | Accumulated principal and accrued dividends of the pension account (Contributed wages) x (6%) x (12 months) x (work seniority) + accrued dividends |
Ownership | Employer | Worker |
