Employment

Insurance, pension, and total hiring costs

In addition to salary, below costs are attached:

Labor pension premiums

The Labor Pension premium per month by an employer provided to the Annuities Insurance program may not be less than 6% of a worker’s monthly wage. While the contribution from the employee is not required.

Labor insurance premiums

The labor insurance premium is based on the insured employee’s monthly regular wage level, and paid by both the insured employee and his employer. The program provides ordinary insurance with 5 kinds of benefits (maternity, injury or sickness, disability, old-age and survivors’ benefits), and occupational accident insurance with 4 kinds of benefits (injury and sickness, medical-care, disability and survivors’ benefits).

National health insurance (NHI) premiums

Similar to the labor insurance premium, the NHI premium is based on the insured employee’s monthly regular wage level and paid by both the insured employee and his employer.

Supplementary national health insurance premiums

It is a response to two main criticism on NHI Premium:

  • The NHI system is supported only by the normal salaried employees: the supplementary NHI Premium is levied on five types of income in addition to regular salaries. They include landlords’ rent income, lenders’ interest income, investors’ dividend income, self-employed’s income from professional practice, extra considerable bonus, and the income not from the employer.
  • Some companies underreports their employee’s wage level in order to evade from a regular fee rate: the supplementary NHI Premium is levied on the difference when the total amount of salary paid exceeds the insured payroll-related amount for that month.
Exemplary total hiring costs

Considering above costs, we make examples as below. From column (g), we can find 10~20% additional costs are attached to the salary:

Monthly Regular Salary in TWD(a)Monthly Regular Salary in USD (b=a/31)Labor Pension Premiums Paid by the Employer (c)Labor Insurance Premiums Paid by the Employer (d)NHI Premium Paid by the Employer (e)Total Cost (f=a+c+d+e)Total Cost Rate (g=f/a)
30,0009681,8182,3331,37335,524118%
50,0001,6133,0363,5272,29258,855118%
70,0002,2584,3683,5273,29881,193116%
90,0002,9035,5263,5274,173103,226115%
110,0003,5486,6063,5274,988125,121114%
130,0004,1947,9023,5275,967147,396113%
150,0004,8399,0003,5276,796169,323113%
170,0005,4849,0003,5277,956190,483112%
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