Boost Your 'Exclusive Worker' ETF with Guaranteed Returns! Employers Cannot Reject Employee Self-Contributions Starting August 1; Adjustments Allowed Twice a Year

Amid volatile global financial markets, the Ministry of Labor urges workers to proactively plan for retirement security by voluntarily contributing up to 6% of their monthly salary to retirement funds—akin to boosting an exclusive worker ETF. This not only offers investment returns and tax advantages but also guarantees returns no lower than the local bank's 2-year fixed deposit interest rate. Furthermore, under revised regulations effective August 1, employers may no longer reject employee applications for voluntary contributions, and contribution rates can be adjusted up to twice a year. Employers who fail to remit contributions on time will be subject to late fees, ensuring full protection of workers' rights.

With recent intensifying volatility in global stock markets, the Ministry emphasizes that the most direct and effective way for workers to build a solid financial safety net is to leverage the dedicated worker ETF. According to Article 14 of the Labor Retirement Act, workers, commissioned personnel, employers actively engaged in labor, and self-employed individuals may voluntarily contribute up to 6% of their monthly wages or professional income to retirement funds. The contribution amount is fully deductible from the individual's annual comprehensive income, providing significant tax savings. Contributors also participate annually in fund investment returns—the earlier one starts saving, the more they will receive in the future.

Workers need not worry about market fluctuations. Individual retirement accounts are legally guaranteed returns no lower than the local bank's 2-year fixed deposit rate, offering both principal and interest protection. Workers may withdraw the principal and earnings from their accounts upon reaching age 60, allowing assets to grow steadily.

Employees wishing to participate can express their intent to their employer, who will then report and remit contributions to the Labor Insurance Bureau. Contribution rates can be flexibly adjusted within the 6% limit, up to two times per year, and contributions can be paused at any time, enabling more flexible asset management.

The Ministry particularly highlights that under Article 21 of the revised Enforcement Rules of the Labor Retirement Act, effective August 1, 2025, employers may not refuse a worker’s application for voluntary contribution. If an employer refuses, the worker may directly apply to the Labor Insurance Bureau, and the employer must collect and remit the funds. Late remittances will incur late fees as stipulated.

Workers can use the Labor Insurance Bureau’s personal retirement account calculator for precise projections and easily access their retirement asset status via the e-service system using mobile authentication or a natural person certificate.