Insurance salary is the basis for calculating various benefit payments for labor and employment insurance. The Bureau of Labor Insurance (hereinafter referred to as BLI) reminds all insured units that, to protect the rights and interests of workers, they should accurately report the insurance salary of employees as required and to apply for adjustment in a timely manner in the event of changes.
When reporting the insurance salary for employees, insured units should file the reports correctly based on the total monthly salary of the employee (which includes all the compensation received by the worker for services provided, including wage, salary, bonus, allowance and all other regular payments such as basic salary, overtime payment, meal allowance, performance incentive and attendance bonus), and refer to the corresponding grades specified in the "Table of Grades of Insurance Salary for Labor Insurance". Overstatement or understatement of insurance salary is not allowed.
As for the timing at which insurance salary adjustment should be reported following changes in employee insurance salary, the BLI explained that, in case the salary change occurs during the period from February to July of the current year, the insured unit should file the application for adjustment before the end of August of the same year. If the salary change occurs between August of the current year and January of the following year, the application shall be filed before the end of February of the following year. For those whose salary income is unstable, the average salary of the latest three months shall apply. The adjusted insurance salary shall become effective from the 1st day of the following month after the application is filed by the insured unit to the BLI.If the monthly salary for the employee is unstable or if the change in amount is significant, the insured unit may apply for adjustments of the insurance salary on a monthly or quarterly basis to ensure timely and accurate updates thereof.
Insured units that fail to report employee insurance salary accurately as required by law will be subject to a fine equal to four times of the overstated or understated premium amount following the BLI’s confirmation of such violation. The insured unit, furthermore, is obliged to compensate the employee in case the benefit payment to the employee is adversely impacted for this reason.