Major Amendments to Retirement Pension Regulations! New Rules for 60-Year-Old Senior Workers' Pension Withdrawal, New Benefits for Workers with 15+ Years of Service

A major overhaul of the《Labor Retirement Fund Act Implementation Regulations》affecting millions of workers across Taiwan has been announced! In the past, many salaried workers wanted to "voluntarily contribute an additional 6%" to their retirement funds but were rejected by their companies for "administrative inconvenience." To prevent such situations, the Ministry of Labor has officially introduced a preventive clause, clearly stipulating that employers cannot obstruct such contributions, and violators will face daily compounded late fees. In addition to the voluntary contribution regulations, this amendment also includes five core reforms such as a "30-day grace period for monthly pensions" and expanded debt protection for heirs, even benefiting senior workers under the old system. This article summarizes the core changes, payment mechanisms, and common questions of the 2026 retirement pension new system to help you understand your retirement benefits at once!

2026 Retirement Pension New System: Latest Reforms! Employers Face Penalties for Refusing Workers' 6% Voluntary Contributions According to the new retirement pension system regulations, employers must contribute at least 6% of workers' salaries to their individual retirement accounts each month, and workers can also voluntarily contribute between 1% and 6%. Voluntary contributions not only enhance one's old-age life but also qualify for "tax deductions" on the contributed amount from the current year's total personal comprehensive income.

In the past, workers who wanted to make voluntary contributions had to go through their companies to apply to the Labor Insurance Bureau and could not handle it themselves, leading to some businesses rejecting such requests. With the new system in place, the relevant regulations will have more binding force: 1. Employers cannot obstruct contributions; workers can apply directly to the Labor Insurance Bureau After workers inform their employers of their intention to "start" or "stop" voluntary contributions, employers must fill out and submit the required forms in accordance with the regulations and cannot refuse. If a company deliberately delays or fails to process the application, workers can bring their proof documents directly to the Labor Insurance Bureau to bypass the company's resistance. 2. Violators will face daily compounded late fees, with a maximum penalty of 100% After the application is completed, the voluntary contribution amount will still be deducted by the company from each month's salary and remitted to the Labor Insurance Bureau. If an employer fails to remit or refuses to do so, from the day after the deadline, a late fee of 3% of the amount to be contributed will be compounded daily, with a maximum penalty of up to 100% (one times) of the amount to be contributed.

2026 Retirement Pension New System: 5 Major Changes and Effective Dates The amended articles of the《Labor Retirement Fund Act Implementation Regulations》include the clause "Employers cannot refuse voluntary contributions," which will take effect on August 1, 2026, while the other clauses have already been implemented since March 27, 2026:

Change Item Core Adjustment Content Effective Date 30-Day Grace Period for Monthly Pensions Workers who choose monthly pensions can apply to switch to a lump-sum payment within 30 days from the date the first payment is credited to their account (only once). 2026/03/27 Employers Cannot Refuse Voluntary Contributions Employers cannot obstruct workers' voluntary contributions of 1% to 6%; violators will face compounded late fees; workers can also apply directly to the Labor Insurance Bureau. 2026/08/01 Extension of Heirs' Claim Rights for Minors The statute of limitations for heirs' claim rights is 10 years, but if they were minors when they obtained the qualification, the statute of limitations will be calculated from the "day they reach adulthood." 2026/03/27 Expansion of Retirement Pension Protection Umbrella The right to "not be seized, offset, used as collateral, or assigned" has been expanded from the worker to their heirs and designated recipients. 2026/03/27 Joint and Several Liability for Changes in Responsible Persons If a company fails to pay retirement pensions or late fees, even if the responsible person changes, the new and old responsible persons will still be jointly and severally liable for the payment. 2026/03/27

For the first time, a 30-day grace period is introduced! Workers can withdraw their pension if they make a mistake in receiving it! In the past, workers who were 60 years old and had 15 years of service, when applying for retirement pensions, once they chose "monthly payments" or "lump-sum payment," after approval, they could not change it for life.

However, in practice, some seniors chose monthly payments only to find that their individual account balance was low, and they could only receive a few hundred to a few thousand yuan per month, which could not meet their living needs or urgent needs. With the new system in place, workers who choose monthly pensions can apply to switch to a lump-sum payment within 30 days from the date the first payment is credited to their account (the already paid amount will be deducted and the difference will be paid). However, this withdrawal mechanism is only available once, and if they initially choose a "lump-sum payment," they cannot switch to monthly payments.

Old System Workers Also Have Benefits! Two New Choices Increase Protection For the 115,000 "old system workers" who started working before July 1, 2005, and have remained with the same company, the Ministry of Labor has also relaxed their benefits and provided two new flexibilities:

Opening up tax deductions for voluntary contributions: Old system workers can now apply to voluntarily contribute 1% to 6%, and employers can apply to the Labor Insurance Bureau to open an individual account for them. They can also enjoy tax exemptions for the current year and participate in the new system's fund income distribution.

Eligible workers can "settle early": If they have made voluntary contributions and meet the statutory retirement conditions under the Labor Standards Act (such as voluntary retirement or mandatory retirement), with the written consent of both the employer and the employee, they can settle their old system retirement pensions early and transfer the entire amount to the Labor Insurance Bureau's individual account to be withdrawn upon reaching the age of 60.

Note: Early settlement must be agreed upon by "both the employer and the employee," and the settlement amount must be fully transferred to the account and cannot be withdrawn directly. However, the worker's current labor contract and annual leave balance will not be affected.

Labor Insurance vs. Retirement Pension: What's the Difference? Many salaried workers often confuse "labor insurance" and "retirement pension," but they are actually two completely different funds that can be received simultaneously upon retirement:

Labor Insurance (Labor Insurance): A government-run social insurance that covers childbirth, illness, disability, and "old-age benefits" after retirement. The premiums are shared by workers, employers, and the government, and the funds enter the labor insurance's large fund pool, not individual independent accounts.

Retirement Pension (Labor Retirement Pension): A statutory retirement benefit provided by employers to workers, using an "individual account system." Employers must contribute at least 6% each month, and the funds are locked in the worker's individual account. Even if the worker changes jobs or the company goes bankrupt, the accumulated principal and investment dividends will always belong to the individual worker.

How to Check Your Retirement Pension Account Balance? To evaluate whether you need to make a "6% voluntary contribution," you can first check how much assets you have in your individual account. Currently, the Labor Insurance Bureau provides the following channels for checking: ・Labor Insurance Bureau e-Service System: Use mobile phone authentication, natural person certificates, or financial certificates to log in and check the account details and perform retirement pension calculations. ・Physical ATM Checking: Hold a "Labor Protection Card" from Land Bank, E.Sun Commercial Bank, Taipei Fubon, Cathay United Bank, or First Bank, and you can directly check at the issuing bank's ATMs. ・Postal Financial Card and Counter: A postal financial card signed with a consent form can be used to check at postal ATMs; you can also bring your ID to the Labor Insurance Bureau's local offices for counter inquiries.