According to the existing regulations, employers with more than 70 (inclusive) insured employees shall be subject to the labor insurance experience rates for occupational accidents. The Bureau of Labor Insurance shall, on an annual basis, adjust the "Business Category Accident Premium Rate" for the specific employer. The ratio shall be calculated by dividing the total occupational accident benefits for the insured unit by its total payable occupational accident insurance premium. The Bureau has already completed the calculation of the 2012 labor insurance experience rates for occupational accidents and has notified employers, as applicable, on October 27, 2011.
The Government has implemented the "Labor Insurance Experience Rates for Occupational Accidents" since 1996. The purpose is to encourage employers to pay attention to health and safety measures for their employees by improving the quality of work environments and preventing and reducing occupational accidents, thereby ensuring the safety of workers. According to Article 13, Paragraph 3 and 4 of the Labor Insurance Act and the Regulations Governing Implementation of Labor Insurance Experience Rates for Occupation Accidents, employers hiring more than 70 (inclusive) insured employees, on average, during the period between July 1, 2010 and June 30, 2011 shall be subject to the labor insurance experience rate for occupational accidents for the year 2012. The "Business Category Accident Premium Rate," therefore, shall be adjusted based on a specific ratio which is calculated by dividing the total occupational accident benefits of the insured unit by its total payable occupational accident insurance premiums during the period between 2008 and 2010. For employers with a ratio higher than 80%, an additional 5% of the "Business Category Accident Premium Rate" shall be charged against each 10% increase in the ratio. The maximum premium rate shall be 40%. For employers with a ratio lower than 70%, the "Business Category Accident Premium Rate" shall be reduced by 5% against each 10% decrease in the ratio. In 2012, the labor insurance experience rates for occupational accidents will be applicable to a total of 10,271 employers. 6,712 of these employers will be paying a reduced "Business Category Accident Premium," 2,627 will be paying more, and 932 will have rates that will remain unchanged.
Under the "Labor Insurance Experience Rates for Occupational Accidents" system, a higher premium rate is demanded from the employers with a higher frequency of occupational accidents; and a lower premium rate is applied to those with a lower frequency of occupational accidents. The Bureau of Labor Insurance encourages employers to pay attention to improving work environments and health/safety facilities, so as to reduce occupational accidents. This not only ensures the safety of workers, but also reduces the company's premium expenses for occupational accidents in the future, thereby achieving a win-win scenario for both the employers and the employees.