Taiwanese officials clarify part-time workers' retirement benefits, stressing employer contributions for each job
Translated from Chinese, summarized and contextualized by DistantNews.
At a glance
- Taiwan's Ministry of Labor clarifies that part-time workers are entitled to the same retirement benefits as full-time employees.
- Employers must contribute at least 6% of a worker's full monthly salary to their retirement fund, regardless of employment type.
- This contribution must be separate from the agreed-upon wage and is required for each job held by the worker.
Taiwanese workers, particularly those juggling multiple part-time jobs, can rest assured that their retirement benefits are protected, according to the Ministry of Labor. The ministry clarified that regardless of working hours or pay structure, part-time employees have the same retirement fund rights as their full-time counterparts.
Regardless of working hours or pay structure, part-time workers' retirement benefits are the same as those of general full-time workers.
Employers are mandated to contribute a minimum of 6% of a worker's total monthly salary to their individual retirement account. This contribution is calculated based on the "Labor Retirement Pension Monthly Contribution Grading Table" and must be declared according to the appropriate grade. Crucially, this retirement fund contribution cannot be included as part of the worker's agreed-upon wage.
The ministry addressed a specific case where a student, Li, earned NT$23,000 in a month from a part-time job. While the employer initially insured Li based on the lowest grade of NT$11,100, the ministry stated that the retirement contribution should have been based on Li's actual earnings. This means the employer should have contributed 6% of NT$23,100, totaling NT$1,386, instead of 6% of NT$11,100, which amounted to NT$666.
The employer should declare the monthly contribution wage according to the grade amount in the 'Labor Retirement Pension Monthly Contribution Grading Table' based on the employee's 'total monthly wage income'.
Furthermore, if an employee holds multiple part-time positions, each employer is obligated to make separate retirement contributions based on the individual's salary from that specific job. For instance, if Li had a second job earning NT$4,000, the second employer would contribute 6% of NT$4,500 (NT$270), and a third job earning NT$9,900 would result in a NT$594 contribution. In such a scenario, Li's personal retirement account would receive a total of NT$2,250 for that month from all employers.
This retirement pension contribution cannot be included in the agreed-upon wage, and it must be contributed for every part-time job.
Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.