From January 1, 2023 onward, the Premium Rate of Labor Insurance Will Be Adjusted to 12% (Including 1% of Employment Insurance Premium Rate) in Accordance with The Regulations
Pursuant to the Labor Insurance Act, the premium rate of labor insurance (ordinary accident insurance) shall be adjusted from the prevailing 11.5% to 12% on 1 January, 2023, which includes 1% employment insurance premium rate. The premium rate for labor insurance, therefore, shall be calculated on basis of 11% in 2023.
The BLI explains that, in order to ensure the financial bal-ance and sustainable development of the labor insurance, it has been clearly stipulated in the regulations that the pre-mium rate of labor insurance (ordinary accident insurance) should be subject to a “Proactive Premium Rate Adjustment Mechanism” since year 2009. The rate, therefore, shall be gradually increased from 7.5% to a maximum of 13% through a progressive fine-tuning approach. In 2023, the rate shall be adjusted to 12% accordingly. Furthermore, since the imple-mentation of the Employment Insurance Act, a 1% reduction is imposed on the labor insurance premium rate, according to the insured person's monthly insured salary. In other words, from January 1, 2023 onward, the labor insurance premium will be charged at 11% of the insured person's current monthly insured salary.
It is estimated that, based on the average monthly insured salary of an employee of a regular business unit in June, 2022 (NTD35,071), the monthly premium payment by an employer for each insured person will increase by NTD122. The monthly premium payment by an employee will increase by NTD36 and the government premium subsidy will increase by NTD18. For occupational unions, the monthly premium payment by an insured person of the union is estimated to increase by NTD87 and the monthly government premium subsidy will increase by NTD59, based on an average insured salary of NTD29,125.
In order to provide timely information to the insured units on the correct premium amount for 2023, the BLI will issue a notice, which will be printed on the reverse side of the insurance premium payment bills for September 2022 and mailed to the insured units before October 25, 2022. The “Table of Shared Insurance Premiums” for the insured persons of different categories and the premium calculation function on the BLI’s website will be updated after the announcement of the amended “Labor Insurance - Table of Grades of Labor Insurance Salary”, which is expected in the last third of November, 2022.