Results of the 2024 Occupational Accident Insurance Actual Performance Fee Rate Calculation Announced: Over 70% of Eligible Units Benefit from Reduction in Insurance Premium
To encourage insured entities to implement occupational accident prevention and strengthen overall occupational safety and health management, for insured units employing over 50 workers, the industry accident fee rate for their Labor Occupational Accident Insurance is based on the “actual performance fee rate” system. The Ministry of Labor (MOL) stated that the actual performance fee rate for the year 2024 has been calculated, and over 70% of eligible units will experience reduced occupational accident insurance premiums. This demonstrates that the actual performance fee rate system is effective in encouraging employers to strengthen occupational accident prevention measures, reducing the occurrence of occupational accidents.
According to Article 16, Paragraph 2 to 5 of the Labor Occupational Accident Insurance and Protection Act and the Regulations of Calculation and Adjustment of Labor Occupational Accident Insurance Merit Rating, the application of the actual performance fee rate system applies to insured units that employ 50 or more insured individuals. The industry accident fee rate for Labor Occupational Accident Insurance is calculated based on the sum total of “ratio of total amount of occupational accident insurance benefits to the total amount of labor occupational accident insurance premiums payable” and the “The handling of occupational safety and health “for each eligible unit in the most recent three years (from January 1, 2020, to December 31, 2022). The BLI has subsequently notified all eligible units of the adjustment results on October 27, 2023.
The Ministry of Labor reiterated that employees are critical assets of a company. Business entities should devote efforts to ensure occupational accident prevention, prioritize occupational safety and health management, create a quality working environment, which can potentially reduce the occupational accident insurance rates, achieving a win-win outcome for all.