7. Is the monthly contribution wage calculated based on total salary, base salary or receivable salary? If there is a change in the monthly contribution wage, what kind of forms should be submitted to report the adjustment?
- According to the Labor Standards Act all remuneration received by a worker in exchange for work is considered wages. Therefore, all salary income should be included when calculating the monthly contribution wage, subject to a maximum of N.T.$ 150,000. Hence, the monthly contribution wage is not limited to the base salary or the net amount received after deductions for Labor Insurance and National Health Insurance premiums. It’s also not based on the monthly insured salary report for labor insurance purposes.
- For workers whose wages are adjusted between February and July of the current year, the employer shall report the adjusted monthly contribution wage to the Bureau by the end of August of the same year; For wage adjustments made between August of the current year and January of the following year, notification to the Bureau shall be made by the end of February of the following year; All adjustments shall take effect on the first day of the month following the notification. When an employer who fails to notify the Bureau of Labor Insurance of an adjustment to the employee’s monthly contribution wage shall be subject to a fine of not less than N.T.$ 5,000 and not more than N.T.$ 25,000. An employee may claim damages from the employer within five years from the date of resignation if the employer fails to make labor pension contributions on a monthly basis or fails to contribute the full amount required.
- (1) For those who already participate in Labor Insurance and National Health Insurance, please fill out the "Insured Salary for Labor Insurance, Insured amount for National Health Insurance and Contribution Wage for Labor Pension 3 in 1 Adjustment form” to report the adjustment.
(2) If the original contribution wage and adjusted contribution wage are both lower than the lowest grade (NT$11,100) of insurance salary of labor insurance or both higher than the highest grade (NT$72,800) of insurance salary of labor occupational accident insurance, please fill out “Labor Pension Contribution Wage Adjustment Form” for processing.
(3) If the labor only participates in Labor Pension program, please fill out the “Labor Pension Contribution Wage Adjustment Form” for processing.
Note:
- If the monthly contribution wage for some employees in a unit is adjusted to be lower than NT$45,800 while that of the remaining employees is adjusted to NT$45,800 or above, the unit only need to fill out "Labor Insurance, National Health Insurance and Labor Pension 3 in 1 wage adjustment Form” for processing, there is no need to fill out the forms separately.
- Where workers or commissioned workers have individually declared voluntary pension contributions, any subsequent adjustment to their monthly contribution wages must be reported to the Bureau of Labor Insurance by the employer or commissioning entity in accordance with the above instructions. No provision currently exists for individual to declaration.