The Government has implemented the "Labor Insurance Experience Rates for Occupational Accidents" since 1996. The purpose is to encourage employers to emphasize and improve labor health/safety facilities, and upgrade the quality of work environments so that occupational accidents may be accordingly prevented and reduced.
According to Article 13, Paragraphs 3 and 4 of the Labor Insurance Act and the Regulations Governing Implementation of Labor Insurance Experience Rates for Occupational Accidents, the experience rates are applicable to employers whose number of employees insured is 70 or more. The BLI annually calculates and adjusts the rates for the employer by using the ratio of the total amount of occupational accident insurance benefits paid to the total payable amount of occupational accident insurance premiums in the business category. Employers with higher incidence of occupational accidents shall pay higher premiums, and employers with lower incidence shall pay lower premiums.
The BLI explained that it has completed the adjustments for the applicable units of the 2015 labor insurance experience rates for occupational accidents, and notified all the relevant employers on October 27th, 2014.
Through the development of the "Labor Insurance Experience Rates for Occupational Accidents" system, a higher premium rate is demanded from employers with a higher incidence of occupational accidents. This motivates employers to place a relatively greater emphasis on the improvement of work area safety. A lower premium rate is applied to those with a lower incidence of occupational accidents. The BLI encourages all employers to pay attention to improving work environments and health and safety facilities, so as to reduce occupational accidents. Not only does this ensure the safety of workers, it also reduces the company's premium expenses for occupational accidents in the future, thereby achieving a win-win situation for both the employers and the employees.