Regardless of the business size, employers are required within the jurisdiction of the Taiwan employment Act to enroll all recruited employees, including interns and business assistants, in labor insurance on the first day of employment. This is also applicable to non-residents and foreign workers. Labor insurance for Taiwan foreigners is expected for all foreign workers employed in Taiwan.
As a company planning to employ workers in Taiwan, it is important to consider the insurance policy applicable to your local and foreign workers. If you want to find out more about Taiwan labor insurance policy for foreigners, you are at the right place. This article has been put together to enlighten you on what you need to know about Taiwan labor insurance and give insights on the required documentation necessary for enrolling in labor insurance.
Labor Insurance for Taiwan Foreigners: An Introduction
Workers’ insurance offers financial aid and/or medical attention to employees who are hurt at work or get ill as a direct result of their work. The employer pays for this insurance while the employee is not expected to contribute any amount. In the case of an accident, it will be decided whether the insurer will pay for medical expenses and/or monetary benefits and the amounts that must be paid. In such case, the employee can claim a calculated benefit or compensation. However, employees will forfeit their entitlement from the insurance if they sustain an accident that is entirely unrelated to the job they do. For example an accident caused by drug or alcohol intoxication or intention to self-harm will not be regarded as work accident.
Labor Insurance for Taiwan Foreigners: The Contribution Structure
In Taiwan, labor insurance premiums for foreign employees are calculated based on the insured salary. This amount reflects the employee’s actual monthly wage, considering it stays within the salary range set. The insured salary plays affect both the monthly contribution amount and the benefits a foreign employee may receive in the future. If declared incorrectly, future claims could be affected, which is why accuracy matters right from the start.
Labor insurance for Taiwan foreigners is funded jointly by three parties: the employer, the employee, and the government. Employers shoulder the largest share of the premium, while foreign employees contribute to a smaller portion that is usually deducted directly from their monthly pay. This deduction should be clearly itemized on the payslip so employees know exactly what they are paying for. The government covers the remaining portion, helping to reduce the financial burden on both employers and workers.
While labor insurance contributions slightly lower take-home pay, they offer important long-term protection for Taiwan foreigners. Proper contributions allow access to benefits such as compensation for workplace injuries, disability assistance, and old-age benefits. If salaries or premiums are underreported, benefit payouts may be reduced, which is why consistent and accurate reporting throughout the employment period is essential.
Labor Insurance for Taiwan Foreigners: Voluntary Enrollment Aspect
Although most foreign employees in Taiwan are required to join labor insurance, certain roles or employment arrangements may fall outside mandatory coverage. In these situations, Taiwan’s labor insurance system may still permit voluntary enrollment even when it is not legally required.
Once a Taiwan foreigner is approved for voluntary enrollment, the scope of coverage is generally the same as for mandatory members. Contribution rates follow a similar structure, and the individual can access labor insurance benefits as long as payments for premiums are on time.
That said, voluntary enrollment must be handled properly. Applications need to be submitted correctly and within the prescribed timeframe to ensure coverage takes effect. If procedures are missed or delayed, coverage may be postponed or rejected, which could affect future benefit claims. Knowing the rules helps Taiwan foreigners avoid unnecessary gaps in protection.
Labor Insurance for Taiwan Foreigners: Qualification Criteria for Employees
All employees hired under a service agreement or an apprenticeship is obliged by law to labor insurance. No matter their tax status or whether you typically refer to them as an employee or a self-employed person. However, it may sometimes depend on the conditions of your employment agreement with them. You may or may not need employers’ liability insurance.
You may require employers’ liability insurance if someone works for you and you have the authority to manage their work environment, including where they work, when they work, and how they work. Also, it will be considered if you provide them with the necessary tools and materials. Depending on the above mentioned factors, a company may not require employers’ liability insurance for employees if the structure of contract does not correlate with any of the mentioned factors.
Labor Insurance for Taiwan Foreigners: Labor Insurance Liability
Foreign employees are qualified for labor insurance under the Labor Insurance Act as insured people and are eligible to apply for labor insurance benefits. Five distinct types of benefits, including maternity benefits, accident or illness benefits, disability benefits, old-age benefits, and survivors’ benefits, are included in the regular insurance scheme. The four types of benefits covered by occupational accident insurance are illness and injury benefits, disability benefits, survivors’ benefits, and medical benefits. All these will be available to foreigners working in Taiwan.
The employer of a foreigner must manage the labor insurance enrollment with the appropriate body as long as the foreigner holds the required document and is granted permission to work in Taiwan. A letter of approval for a work permit and a dwelling permit will be required. This also applies to some foreign experts who possess gold employment cards.
Labor Insurance for Taiwan Foreigners: Required Documentation
Employees with Taiwanese citizenship and foreign workers who comply with Taiwanese legislation are covered by labor insurance. Employees who are Taiwanese nationals and their spouses of foreign nationality or spouses from mainland China and Hong Kong, are eligible receivers of the employment insurance. After hiring one employee, a company must have obligatory employment insurance.
Where applicable, the following documents are required for foreigner’s labor insurance in Taiwan:
- A copy of the foreign worker hiring permission letter issued by the Ministry of Labor or Ministry of Education; or .
- A copy of gold employment card; or A copy of Alien Resident Certificate with the wording of “this card is considered as work permit”.
The aforementioned documents are to be sent to the Taiwan Ministry of Labor’s Bureau of Labor Insurance via mail or in person. To utilize the labor insurance online filing system, you will need your labor insurance license number.
Labor Insurance for Taiwan Foreigners: Compliance and Administrative
Employers hiring Taiwan foreigners are responsible for enrolling eligible employees in labor insurance from the first day of work, once a valid work permit has been issued. Timely registration guarantees that foreign employees are protected from the very beginning of their employment.
Employer responsibilities continue throughout the employment period. Insurance records must be kept up to date, including reporting adjustments made to the salary, the termination of contracts, or future resignations within the required deadlines. For Taiwan foreigners, these records are especially important, as they will come in handy to support labor insurance benefit applications.
Maintaining proper compliance with labor insurance regulations helps ensure Taiwan foreigners remain fully covered during their time in Taiwan. Accurate administration not only meets legal requirements but also safeguards employee rights, making it easier for foreign workers to access labor insurance benefits when needed.
Premia TNC’s Assistance
As an employer it is up to you to determine the status of the people working for you and enroll them for labor insurance. If you are confused about how to go, let Premia TNC help you. Obtain legal counsel with us by booking a consultancy session. If you have any questions about your employee payroll you can reach out to us.
FAQs About Labor Insurance For Taiwan Foreigners
Q: How do international employees submit a labor insurance application?
The labor insurance coverage should be the responsibility of the employer that hires the overseas employee. In addition to copies of the worker's work permit and other related papers that have been authorized by the central competent authority, the employer must fill out an insurance application form and send it to the Bureau of Labor Insurance. Visit the Bureau of Labor Insurance website for the enrollment materials needed for the labor insurance program.
Q: What benefits does labor insurance cover?
The labor insurance benefits cover medical expenses for maternity, birth, illness, disability, old age, death, and work-related hazards. Workers who are employed and paid to undertake the actual job and those who work independently or without a regular employer are the focus of labor insurance.
Q: What requirements must be met in order to be eligible for standard injury or illness benefits under labor insurance?
When an insured person is hospitalized and undergoing medical treatment for a common accident or illness for which he is not receiving income, he is entitled to receive regular injury or sickness benefits starting on the fourth day that he is unable to work. Ordinary injury or illness benefits must be paid once every six months for a maximum of one year at a rate equal to 50% of the average monthly insurance earnings of a covered individual six months previous to the accident.
