The Bureau of Labor Insurance Reminds the Insured Units to Regularly Check the Monthly Insurance Salary and Apply for Adjustments to Ensure Accuracy
Labor insurance salary is the basis for calculating various benefit payments for labor and employment insurance, hence the Bureau of Labor Insurance (BLI) reminds all insured units that, to protect the rights and interests of workers, and avoid labor disputes, 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.
The BLI explains that, according to the Labor Insurance Act, the insured unit shall report the employees’ monthly insurance salary according to their total monthly salary and the "Table of Grades of Labor Insurance Salary". Compensation obtained from work shall be included in the monthly salary for reporting, such as wages, salaries, premiums, allowances, whether payable in cash or in kind of computed on an hourly, daily, monthly, or piece-work basis, and other regular payments under whatever name. For example, the wages paid by the insured units at the beginning of a year against the paid annual leave not taken, the performance bonus paid to a worker for targets achieved, overtime pay, duty allowance, sales incentive and attendance bonus shall all be reckoned as "Remuneration Obtained from Work" and included as part of the total monthly salary when calculating the monthly insurance salary for the month.
The BLI further explains that, when applying for the enrollment of a new employee, the insured unit should report the total monthly salary agreed, if available. If there is no agreement made thereon, the insured unit should report the monthly insurance salary based on the total monthly salary of the employees holding the same job grade in the specific business unit, in accordance with the "Table of Grades of Labor Insurance Salary". In the event that the total monthly salary of the employee is not steady due to overtime pay, bonus, allowance or other payments, the insured unit may, depending on the scope of change of the individual employee’s total monthly salary, report the correct monthly insurance salary to the BLI based on the average total salary of the latest three months. The application shall be filed, at least, either before the end of February or before the end of August of the year. The insured units may also apply for such adjustments on an ongoing basis. The adjusted monthly insurance salary shall become effective on the first day of the month following the month when the application was filed by the insured unit to the BLI.
Insured units that fail to report employees’ insurance salary accurately as required by law will be subject to a fine 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. The BLI, therefore, calls on all insured units to file the applications for adjustment in accordance with the aforementioned requirements if there is any change to the salary of the workers.