To Safeguard the Workers’ Benefit Rights, the BLI Reminds the Insured Units to Regularly Check and Adjust the Insured Salary.
To ensure that adequate insurance benefit is provided to the workers upon the occurrence of contingencies, the Bureau of Labor Insurance, Ministry of Labor (hereinafter referred to as “the BLI”) reminds all insured units to accurately report the monthly insured salary for their employees for labor insurance, employment insurance and labor occupational accident insurance (hereinafter referred to as “Occupational Accident Insurance”). The insured units should, in the meantime, regularly check and adjust the insured salary to protect the workers and avoid penalty.
According to the regulations, the insured units should, based on the “Table of Grades of Labor Insurance Salary” and “Insured Salary Category Chart of Labor Occupational Accident Insurance”, accurately report the monthly insured salary for their employees according to the total monthly salary thereof. By definition, “Total Monthly Salary” means the compensation a worker receives for his/her work, including wages, salaries, premiums, allowances, whether payable in cash or in kind of computed on an hourly, daily, monthly, or piece-work basis, and other regular payments under whatever name. For example, overtime pay, duty allowance, attendance bonus,wages paid for unused annual paid leaves, incentives for goals achieved and sales incentives shall all be reckoned as “Compensation Received from Work” and included as part of the total monthly salary for the current month.
The BLI further explained that, when enrolling a new employee, the insured unit should report the “Total Monthly Salary” as agreed. If the “Total Monthly Salary” has not yet been confirmed, the insured unit should refer to the total monthly salary of the employees with the same job grade and working in the business unit. If the total monthly salary of the employee is not fixed due to the changes in overtime pay, incentives, allowances or other incomes, the insured unit should monitor such changes and accurately adjust the monthly insured salary based on the employee’s average total salary for the recent three months. At least two adjustments should be made each year, at the end of February and August respectively. Adjustments can be made anytime, if necessary. The adjusted monthly insured salary shall take effect on the first day of the next month after the adjustment report has been filed by the insured unit to the BLI.
Insured units that fail to report employee’s insured salary accurately as required by law will be subject to a fine following the BLI’s confirmation of such violation. The insured unit, furthermore, is obliged to compensate the employee if the benefit payment to the employee is adversely impacted for that reason. The BLI, therefore, calls on all insured units to regularly check the insured salary of their employees and make accurate adjustments if there is any change, so as to fulfill their responsibilities as employers and protect the interests of the workers.