Social security
in Taiwan (China).

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Taiwan

Social security in Taiwan (China)– Overview

Taiwan’s social security system is a robust network of programs covering various needs: Compulsory for all employees, the Labor Insurance offers benefits like old-age, disability, and survivors’ pensions, maternity, and sickness benefits; the National Health Insurance ensures equal healthcare access for all citizens; the Labor Pension Fund mandates employer contributions towards individual pension accounts. Specialized insurances exist for farmers, public servants, teachers, and military personnel.

Read on to find our more about how employers and employees must contribute to the Taiwan social security system.

What does the social security system in Taiwan (China) cover?

The Labor Insurance scheme provides cover in the case of death, injury and illness, loss of daily functional abilities, medical costs arising from occupational hazards.

The Labor Pension Program provides a pension scheme for employees, including expats.

The National Health Insurance (NHI) system is a social insurance that captures all residents of the country. Through this program, individuals including expats with a full time job get equal access to healthcare services. An individual will no longer be eligible for coverage under NHI when their Alien Resident Card (ARC expires).

What are the mandatory contributions for employees to social security in Taiwan (China)?

For 2023, social security contributions for employees in Taiwan are as follows:

Labor Insurance Program (LIP). The current premium rate is 11% of the employee’s monthly salary, up to a monthly maximum of TWD45,800. The employee pays 20% of the premium.
National Health Insurance Program (NHIP). The total premium for National health insurance (NHI) is 5.17% of the monthly salary up to a maximum monthly salary of TW$ 150,000. Employees pay 30% of the total premium.
Labor Pension Program (LPP)
The employee can make a voluntary contribution of a minimum 6% of their monthly salary to a specific Individual Pension Account, up to a maximum salary of TW$ 150,000.

What are the mandatory contributions for employers to social security in Taiwan (China)?

All Taiwan (China) employers make mandatory contributions towards the National Pension fund, the National Health Insurance scheme, Unemployment Insurance, and the Industrial Accident Compensation Insurance scheme.

In 2023, employer contributions towards social security are as follows:

Labor Insurance Program (LIP). Taiwanese Legal Entities with more than 5 employees must contribute to labor insurance. The contribution is divided into two main categories:
- Ordinary risk insurance covers: maternity, injury or sickness, disability, old age, death benefits. The current ordinary risk insurance premium rate is 11% of the employee’s monthly salary, up to a monthly maximum of TW$ 45,800. The employer pays 70% of this premium.
- Occupational accident insurance covers: injury or sickness, disability and death benefits, medical benefits. This is paid for by the employer at a rate of 0.14% of the employee’s monthly salary, up to a monthly maximum of TW$ 45,800.
National Health Insurance Program (NHIP). The total premium for National health insurance (NHI) is 5.17% of the monthly salary up to a maximum monthly salary of TW$ 150,000. Employers pay 60% of the total premium.
Labor Pension Program (LPP).The employer must pay a minimum of 6% of the employees monthly salary to a specific Individual Pension Account, up to a maximum salary of TW$ 150,000.

How do mandatory contributions compare to the surrounding countries?

Social security contributions in Taiwan are, on average, lower, than those in the surrounding countries:

South Korea: ≈9.545%
China: ≈27.5%
Japan: ≈15.87%

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Your business can easily hire employees in Taiwan without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

How much do employers need to contribute to social security in Taiwa?

Employers contribute on average approximately 15% of an employee’s salary to social security in Taiwan.

What situations does social security cover for employees in Taiwan?

Social security in Taiwan covers medical, disability, retirement, and death benefits.

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