8. Why is there a late payment charge for the pension contribution that has been already paid? How is the late payment charge for Labor Pension contribution calculated? Is there any upper limit?

According to the regulations in Labor Pension Act, if an employer fails to make labor pension contributions within the prescribed time limit and does not pay even after the deadline, a late payment charge of 3% of the overdue contribution amount shall accrue on a daily basis, commencing on the day immediately following the expiration of the payment deadline and ending on the day immediately preceding the settlement date. The upper limit of the late payment charge is equal to the amount of the overdue contribution.

1. Calculation method for overdue penalty: Employer’s Payable Contribution Amount (Including Mandatory and Voluntary Pension Contributions) ×3％× number of Overdue Days.
2. Using the NT$10,000 Pension Contribution Payable for July as example, it should be paid in full by September 30. If the amount is not paid in full, the Bureau of Labor Insurance will mail out a letter for collection at the beginning of October and ask the collectible unit to pay before October 31. If the collectible unit still has not paid by October 31, the Bureau of Labor Insurance will impose a 3% overdue penalty on a daily basis. If the collectible unit pays off the pension in full on November 16, the amount of overdue penalty is: NT$10,000 ×3％×15 days＝ NT$4,500.
3. Using the previous example, the overdue penalty for the 10,000 unpaid contributions for July will reach the same amount of the unpaid contribution on December 4. However, if using the overdue days of 34 days to calculate the overdue penalty, the amount is NT$10,200. The Bureau of Labor Insurance still should use the overdue pension payable of NT$10,000 as the amount of overdue penalty: NT$10,000 × 3％ ×34 days ≒ NT$10,000（Overdue Penalty Payable）