What Happens If You Don't Pay National Pension? 2026 Reform Increases 'These Two Allowances'—Will It Affect Labor Insurance? See How Much You Can Receive Monthly

Taiwan's National Pension Insurance is undergoing a significant institutional adjustment. Starting January 1, 2026 (Minguo Year 115), the monthly insured amount for National Pension will officially increase to NT$21,103, with the insurance premium rate maintained at 10.5%. Under the current cost-sharing mechanism, ordinary insured individuals pay 60% while the government covers 40%. As a result, the monthly premium for individuals will be adjusted to NT$1,329—up by NT$84 from the previous rate of NT$1,245 in 2025 (Minguo Year 114). The government’s monthly contribution will increase to NT$887.

With the rise in the monthly insured amount, all insurance benefits calculated based on this amount will also increase. The most notable changes are in the lump-sum allowances. Maternity benefits, calculated as two months’ worth, will increase to NT$42,206 per birth. Funeral benefits, calculated as five months’ worth, will rise from the previous NT$98,805 to exceed the NT$100,000 threshold, reaching NT$105,515.

Since its launch on October 1, 2008 (Minguo Year 97), the National Pension system has primarily protected citizens aged 25 to under 65 who are registered in Taiwan and not enrolled in Labor Insurance, Farmers’ Insurance, Military Insurance, or Public Servants’ Insurance. It covers unemployed individuals, students, homemakers, and alternative service draftees, providing five major benefits: maternity, funeral, old-age, disability, and survivor benefits.

Many people are concerned about the consequences of not paying premiums. Will it affect Labor Insurance or result in fines? The competent authority clarifies that National Pension and Labor Insurance operate as separate systems, so non-payment of National Pension premiums does not affect an individual’s Labor Insurance rights. However, long-term arrears in National Pension premiums can lead to substantial loss of benefits, including interruption of insurance years (making one ineligible for benefits) and the addition of interest after the deadline. If premiums remain unpaid for over 10 years, those contribution years will be permanently lost and cannot be back-paid.

Additionally, the law stipulates that spouses have joint liability for payment. The government conducts random checks each year and sends reminder notices to delinquent individuals and their spouses. If the spouse fails to pay within 30 days of receiving the notice, a fine of NT$3,000 to NT$15,000 will be imposed. For individuals unable to pay in full due to financial hardship, those with an annual income below NT$500,000 and arrears of at least NT$3,000 may apply to the competent authority for a payment plan of up to 40 installments to prevent the loss of contribution years.

How much old-age pension can be received monthly upon retirement? When applying for old-age pension at age 65, the system will calculate benefits using two formulas—Formula A: (monthly insured amount × years of contribution × 0.65%) + NT$4,049, and Formula B: monthly insured amount × years of contribution × 1.3%—and pay the higher amount.

Using the new monthly insured amount of NT$21,103 as an example, an individual with 10 years of contributions would receive NT$5,421 under Formula A and NT$2,743 under Formula B, so the higher Formula A amount would be paid. With 20 years of contributions, Formula A yields NT$6,792 and Formula B NT$5,487, still favoring Formula A. However, when contributions reach 30 years, Formula A results in NT$8,164 while Formula B reaches NT$8,230, making Formula B the superior option.

It is important to note that individuals who have a record of contribution years being invalidated due to over 10 years of non-payment, or who have outstanding premiums at age 65 and fail to settle them after notification, will permanently lose the right to choose the more favorable calculation method and will receive benefits solely under Formula B for life. Individuals wishing to check their contribution history and payment status can visit local offices with identification documents or log in to the e-system online using a natural person certificate or mobile authentication.