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From 1 January 2021 onward, the premium rate on ordinary accident insurance of Labor Insurance will be adjusted upwards to 11.5% (including 1% for employment insurance). The 2021 merit rate on occupational accident insurance of Labor Insurance shall be made effective on the same day.

Pursuant to the Labor Insurance Act, the premium rate on ordinary accident insurance shall be adjusted to 11.5% from 1 January 2021 onward, which includes 1% employment insurance premium. The premium for ordinary accident insurance, therefore, shall be calculated on basis of 10.5% in 2021. In 2021, the merit rate for occupational accident insurance will be applicable to a total of 12,728 insured units, of which nearly 80% will be paying at a reduced premium rate. The fact suggests that the application of the merit rate is an effective approach to motivate the employers to strengthen the measures to prevent and reduce occupational accidents.

The Bureau of Labor Insurance (BLI) explained that, with regard to the notifications on the adjustment of ordinary accident insurance premium rate of Labor Insurance, the notices will be printed on the reverse side of the insurance premium payment bills for September 2020, which have been distributed to the insured units on October 21, 2020. The "Table of Ordinary Insurance Premium of Labor Insurance Shared by the Insured Person and the Insured Unit (2021)" will be publicized on BLI's global information website by mid-November, 2020 when the amendment of the "Table of Grades of Labor Insurance Salary" (The amendment will be made to coincide with the adjustment of basic wage to NTD24, 000 on January 1, 2021) is completed and announced by the Ministry of Labor. The Insurance Premium Trail Calculation System will be amended simultaneously so that the insured units and insured persons can calculate their premium payable online for the coming year.

The BLI further explained that, in order to encourage employers to strengthen the preventive measures against occupational accidents, improve the health and safety at workplaces and reduce occupational disasters, the government has applied experience rate for the premium calculation of occupational accident insurance. Rate adjustment shall be made every three years based on actuarial results. In addition, for insured units having seventy or more insured persons, they shall also be subject to the "Merit Rate System" when determining the Business Category Premium Rate for occupational accident insurance. The rate shall be adjusted annually based on the percentage of the total occupational accident claim against the total occupational accident premium payable during the preceding three years.

In 2021, the labor insurance experience rates for occupational accidents will be applicable to a total of 12,728 insured units (an increase of 220 from year 2020), of which 9,718 (76.35%) will be paying at a reduced premium rate; 2,131 (16.74%) will be paying at a higher rate; and 879 (7%) will remain paying at the same rate. Among the participating insured units in 2020, 682 insured units will no longer be applicable to this system. Notices have been distributed to the related nsured units on October 28, 2020.
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Last Update:2020-11-19