Q&A Relating to the 2024 Adjustment of Labor Insurance (Occupational Accident Insurance) Pension Payment Based on Consumer Price Index (CPI) Accumulated Growth Rate
- Q1：Will there be any adjustment on labor insurance pension payment for this year (2024)?
- A1：Yes, for this year, the adjustment will be applicable to the claimants of the pension payment during the year 2009、2010、2013、2014、2015、2019、2020 and 2021, total 8 years. Up to year 2023, the accumulated growth rates of consumer price index (hereinafter referred to as the “CPI Accumulated Growth Rate) for the aforementioned years are as shown below. They have attained the statutory threshold for adjustment (which is 5%). For the individuals who are currently receiving the labor insurance pension benefits (including old-age pension benefits, permanent disability pension benefits and survivor pension benefits) will, according to the regulations, receive an upward adjustment since May, 2024. The adjusted amount shall be credited to the recipients’ accounts at the end of the next month (June 27, 2024). For the applications filed in other years, no adjustment will be made since the CPI Accumulated Growth Rate has not yet attained 5%.
Year Starting
Receiving the Benefits |
CPI Accumulated Growth Rate |
|
2009
|
5.51%
|
|
2010
|
|
2013
|
|
2014
|
|
2015
|
|
2019
|
7.33%
|
|
2020
|
7.59%
|
|
2021
|
5.51%
|
- Q2：As a follow-up question, what is the amount of adjustment? How is it calculated?
- A2：For those applying for pension payment during the year 2009、2010、2013、2014、2015、2019、2020 and 2021, the amount of labor insurance pension benefits will be increased based on the following formula: The increased amount per month = the amount received each month * the CPI Accumulated Grow Rate for the year. For example, Mr.A applied for old-age pension benefits in July, 2021 and is receiving a monthly payment of NTD20,000. His monthly pension payment will be increased by NTD1,102 in May, 2024 (NTD20,000 * 5.51% = NTD1,102). The payment will be credited to his accounts on June 27, 2024.
- Q3：How do I know if my pension payments have been adjusted and by how much? When will I receive the payment? Will the Bureau of Labor Insurance notify me via written notice?
- A3：Your account will be credited with the pension payment by 27 June, 2024. You may update your passbook then and access to the relevant information. Here is an example using the case of Mr. A above. The pension payment for May, 2024 will be distributed in end of June, divided into 2 separate entries including the original payment of NT$20,000 and an additional payment of NT$1,102 calculated on basis of the 5.51% CPI accumulated growth rate (In the passbook, the description for the entry will be "CPI Adjustment"). Starting from July and onwards, however, only a single credit entry will be shown on the passbook, showing the total amount of NTD21,102. Furthermore, to support the government policy of reducing paper waste, no written notice will be issued. The Ministry of Labor will announce the approved adjustment of pension payment. The BLI will, in the meantime, provide the latest update on its global website.
- Q4：Why is my pension payment amount adjusted starting May 2024 and not January 2024?
- A4：According to Paragraph 2, Article 96 of the Enforcement Rules of the Labor Insurance Act, when the CPI accumulated growth rate reaches 5%, the Bureau of Labor Insurance should, before the end of May of the current year, submit the proposal to the Ministry of Labor for approval and announcement. The adjustment will become effective from May of the same year. The adjustment for year 2024, therefore, will take effect from May, 2024. The related pension payment will be made in the subsequent month (June, 2024).
- Q5: I started receiving the old-age pension payment in 2022, will I also receive an increased payment starting from May 2024?
- A5：No. The adjustment this time only applies to the individuals who began receiving labor insurance pension payments in the following eight years: 2009, 2010, 2013, 2014, 2015, 2019, 2020 and 2021. For recipients from other years, no adjustment will be made since the CPI accumulated growth rate has not reached the statutory standard of 5%. Individuals who began receiving pension payments in 2022 will not be receiving adjusted payments. The adjustment will be made when the CPI accumulated growth rate reaches 5% for the years of 2022 and onwards.
- Q6：How is the CPI Accumulated Growth Rate calculated for different years?
- A6：Calculation for the CPI Accumulated Growth Rate for each year is as follows:
Year Starting
Receiving the Benefits |
Base Period
Accumulated
Average CPI |
2023
Accumulated
Average CPI |
Accumulated
Growth Rate
(Refer to Explanation 2) |
Eligible for
adjustment
this year? |
|
2009
|
100.00
|
105.51
|
5.51%
|
Adjustment will be made
since May, 2024
|
|
2010
|
100.00
|
5.51%
|
|
2011
|
102.95
|
2.49%
|
No
|
|
2012
|
102.95
|
2.49%
|
No
|
|
2013
|
100.00
|
5.51%
|
Adjustment will be made
since May, 2024
|
|
2014
|
100.00
|
5.51%
|
|
2015
|
100.00
|
5.51%
|
|
2016
|
102.95
|
2.49%
|
No
|
|
2017
|
102.95
|
2.49%
|
No
|
|
2018
|
102.95
|
2.49%
|
No
|
|
2019
|
98.30
|
7.33%
|
Adjustment will be made
since May, 2024
|
|
2020
|
98.07
|
7.59%
|
|
2021
|
100.00
|
5.51%
|
|
2022
|
102.95
|
2.49%
|
No
|
|
2023
|
105.51
|
0.00%
|
No
|
Explanation:
- The information is compiled based on the Splicing Table of Consumer Price Index published by the Directorate-General of Budget, Accounting, and Statistics, Executive Yuan in April 2024.
- 2. Accumulated Growth Rate =【(Accumulated Average CPI for the previous year (2023)/Base Period Accumulated Average CPI)-1】 *100% (results should be rounded off to the second decimal place).
- Q7：Since the old-age pension benefits is adjusted based on the CPI Accumulated Growth Rate, will there be any difference between choosing the first and the second payment method?
- A7：No, the adjustment of old-age pension benefits is calculated based on the original benefit amount, taking into account the CPI Accumulated Growth Rate. There will be no difference for choosing different calculation methods.
- Q8：Will the pension payment for labor insurance (occupational accident insurance) be adjusted regularly at an interval of five years based on the CPI accumulated growth rate?
- A8：No. The adjustment of pension payment will be made based on the CPI accumulated growth rate since the year the insured person started receiving the payment. The adjustment will be made when the rate reaches 5%.
- Q9：Since the launch of the labor insurance (occupational accident insurance) pension system, what are the years where the claimants have received the adjustment based on the CPI Accumulated Growth Rate?
- A9：Adjustments have been made for the claimants of year 2009 to 2018. The details are as follows:
Year starting
receiving the benefit |
The month/year
the adjustment was made |
Percentage of Adjustment |
|
2009
|
May, 2014
|
5.20% (Calculated from 2009 to 2013)
|
|
May, 2022
|
6.71% (Calculated from 2014 to 2021)
|
|
2010
|
May, 2015
|
5.45% (Calculated from 2010 to 2014)
|
|
May, 2022
|
5.45% (Calculated from 2015 to 2021)
|
|
2011
|
May, 2017
|
5.10% (Calculated from 2011 to 2016)
|
|
May, 2023
|
7.40% (Calculated from 2017 to 2022)
|
|
2012
|
May, 2019
|
5.14% (Calculated from 2012 to 2018)
|
|
May, 2023
|
5.31% (Calculated from 2019 to 2022)
|
|
2013
|
May, 2022
|
6.71% (Calculated from 2013 to 2021)
|
|
2014
|
May, 2022
|
5.45% (Calculated from 2014 to 2021)
|
|
2015
|
May, 2022
|
5.77% (Calculated from 2015 to 2021)
|
|
2016
|
May, 2023
|
7.40% (Calculated from 2016 to 2022)
|
|
2017
|
May, 2023
|
6.74% (Calculated from 2017 to 2022)
|
|
2018
|
May, 2023
|
5.31% (Calculated from 2018 to 2022)
|