Employers' 6% Contribution Rate Under New Labor Retirement System Unchanged for Over 20 Years; Labor Groups Demand Increase, Ministry Responds

The Labor Pension Act, implemented in 2005, has maintained a statutory minimum employer contribution rate of 6% for over two decades without adjustment. Today (23rd), the Legislative Yuan's Social Welfare and Health Environment Committee convened a public hearing on proposed amendments to the new and old labor retirement systems. Legislators from across party lines have submitted draft revisions advocating for raising the employer contribution floor to 8% or 9%. Labor organizations are calling for a gradual increase up to 12% to strengthen retirees' financial security.

Prior to the hearing, labor groups rallied outside the Legislative Yuan, chanting 'immediately schedule deliberations' and urging swift legislative action. The May First Action Alliance highlighted that one of the key demands of this year's May Day parade is improving post-retirement economic security, including raising the retirement benefit cap under the old system and increasing the minimum employer contribution rate under the new system. Labor groups pointed out that when the new retirement system was launched, then-Labor Affairs Council Chairperson Chen Chu stated, 'First establish the system, then improve it.' However, they argue that after more than 20 years of implementation, the 6% rate is no longer sufficient.

In response to these demands, Deputy Minister of Labor Huang Ling-na stated that there are still differing opinions on the appropriate contribution rate level. The Ministry has conducted preliminary estimates and internal discussions and will continue communicating with labor groups. She emphasized that raising the employer contribution rate under the new system would affect over 600,000 enterprises and approximately 8 million covered workers, necessitating careful assessment.

Additional exclusive insights from Storm Media: · With the 6% contribution rate frozen, projected retirement payouts show significant shortfalls—labor groups estimate workers with 25 years of service may not reach NT$1 million, and one demographic receives only 80% of expected benefits. · Early settlement of retirement funds now possible under the old system! Two major reforms take effect on the 17th; a 55-year-old case study shows 'NT$2 million continuing to grow'. · Are you receiving less than your entitled labor pension? Over 30% of workers have salaries 'legally underreported'; labor groups' advocacy yields results.