What Happens If You Don't Pay National Pension? Starting in 115, 'These Two Allowances Increase Significantly' — Full Details on Payment Deadlines and Monthly Payouts

The National Pension Insurance, commonly known as "Guo Bao," is undergoing a significant institutional adjustment. Effective January 1, 115, the monthly insured amount for National Pension will officially increase to 21,103 NTD, while the insurance premium rate remains unchanged at 10.5%. This adjustment raises the total monthly premium to 2,216 NTD. Under the current system where general insured individuals pay 60% and the government subsidizes 40%, individuals will now pay 1,329 NTD per month, with the government contributing 887 NTD. Although premiums are slightly increasing, this also leads to a simultaneous rise in various benefits, including maternity, funeral, and old-age pensions.

Introduced by the government on October 1, 97, this social insurance system aims to protect citizens during employment gaps or those unable to join Labor Insurance, Farmers' Insurance, Military Insurance, or Civil Servants' Insurance. All individuals aged 25 to 65, registered as residents in Taiwan, and not covered by other social insurance schemes are automatically enrolled in National Pension. This includes the unemployed, students, full-time homemakers, and even alternative service draftees.

Comparing the old system (114) with the new (115), the monthly insured amount increases from 19,761 NTD to 21,103 NTD, and the total monthly premium rises from 2,075 NTD to 2,216 NTD. For general insured individuals, the monthly self-payment increases from 1,245 NTD to 1,329 NTD—an additional 84 NTD per month. Government subsidies also rise from 830 NTD to 887 NTD. Low-income, middle-low-income, and disabled individuals receive additional government support, with some qualifying for full premium subsidies.

Alongside the premium increase, one-time allowances see notable growth. Maternity benefits, calculated as two months' worth, increase from 39,522 NTD to 42,206 NTD per birth. Funeral allowances, based on five months, rise from 98,805 NTD to 105,515 NTD, surpassing the 100,000 NTD threshold. Additionally, National Pension covers old-age pensions, disability pensions, and survivor pensions, providing comprehensive basic living security.

What happens if premiums aren't paid? Could spouses face fines? What are the consequences of non-payment exceeding ten years?

Many citizens receiving payment notices are concerned about the consequences of unpaid premiums. The Bureau of Labor Insurance emphasizes that while unpaid National Pension premiums do not affect Labor Insurance rights—since the two systems operate independently—long-term non-payment still brings four major consequences.

First, insurance contribution years are interrupted, making it impossible to receive benefits. Second, although a 10-year grace period exists for back payments, interest is added beyond this period; if interest exceeds 30 NTD, it must be paid. Third, if non-payment exceeds 10 years, those contribution years are permanently lost and cannot be reclaimed. Fourth, there is a strict spousal joint liability penalty: the government may audit delinquent payers and demand payment from their spouses. If the spouse fails to pay within 30 days of notification, a fine of 3,000 to 15,000 NTD may be imposed.

For those unable to pay in full, individuals with annual income below 500,000 NTD and total arrears of at least 3,000 NTD may apply to the Bureau of Labor Insurance for a payment plan of up to 40 installments. Furthermore, if there are unpaid premiums between ages 64 and 65, the first three months of pension payments will still be issued, but afterward, the more favorable calculation method cannot be selected, significantly impacting long-term benefits.

How much pension can one receive monthly after retirement? Let’s calculate based on 10 and 30 years of contributions.

Upon reaching the retirement age of 65, National Pension offers two calculation formulas for old-age pensions—Formula A and Formula B—with the higher amount automatically selected. Based on the new 115 system’s monthly insured amount of 21,103 NTD, Formula A is '(21,103 NTD × years of contribution × 0.65%) + 4,049 NTD,' and Formula B is '21,103 NTD × years of contribution × 1.3%.' It is crucial to note that if contribution years are lost due to over 10 years of non-payment, individuals are permanently restricted to the lower-paying Formula B.

With 10 years of contributions, Formula A yields 5,421 NTD per month, while Formula B yields 2,743 NTD—the system pays the higher 5,421 NTD. With 20 years, Formula A pays about 6,792 NTD, and Formula B pays 5,487 NTD—still favoring Formula A. However, with 30 years of contributions, Formula A pays approximately 8,164 NTD, while Formula B reaches 8,230 NTD, making Formula B more advantageous.

Citizens can check their National Pension contribution records and payment history at any time. They may visit local Bureau of Labor Insurance offices with identification documents or log in to the Bureau’s e-Service System using a Natural Person Certificate, Mobile Natural Person Certificate, or mobile phone authentication to view and print payment records online instantly.