Will Pension System Change? Employer Contribution Rate May Rise to 12%. Ministry of Labor Reveals Latest Plans

The labor pension system, now in its 20th year, has seen employer contribution rates remain at the minimum 6%. The Audit Department revealed that in 2025, the average employer contribution rate was only 6.04%, with most companies contributing the bare minimum.

After 20 years of implementation, the Audit Department has called for a review of the pension system to improve post-retirement financial security. The Ministry of Labor is being urged to consider raising the minimum employer contribution rate. Labor groups have repeatedly raised this issue, and during the May 1st Labor Day protests, they demanded that the minimum contribution rate be raised to 12%.

In addition to employer contributions, personal contributions are also an important way to accumulate pension funds. The Audit Department noted that while the number and percentage of workers making personal contributions have been gradually increasing, more than 80% of workers still do not participate. To encourage personal contributions, there have been frequent suggestions to allow workers to choose their own investment targets. However, the Ministry of Labor has yet to announce any specific results from its evaluation.

In response to concerns from the Audit Department and labor groups, the Ministry of Labor's Director of Labor Welfare and Pension, Huang Wei-chen, stated that to help workers increase their pension income, the Ministry is coordinating with the Financial Supervisory Commission to include corporate pension contributions in the ESG reporting evaluation indicators for listed companies. For non-listed companies, the government will continue to promote related incentive measures.

Regarding personal contributions and the selection of investment targets, Huang Wei-chen noted that the proportion of workers making personal contributions has indeed been gradually increasing. As for the selection of investment targets, while some legislators have proposed relevant amendments, considering that some workers still have concerns about self-managed investment mechanisms, the Ministry of Labor will continue to maintain an open attitude and actively collect and listen to diverse opinions from all sectors of society.