In Taiwan, employees are provided with a comprehensive social safety net through mandatory benefits. These benefits, designed to offer financial security and support in various situations, contribute to a stable work environment.

Social Insurance Programs

The social security system in Taiwan consists of two primary programs: Labor Insurance (LI) and Employment Insurance (EI). Both programs are mandatory for employees, with employers contributing a set percentage of the employee's salary.

Labor Insurance (LI)

LI offers a broad range of benefits, including:

• Maternity Leave: Employees with at least six months of employment are entitled to eight weeks of paid leave at 100% of the regular salary.
• Sickness and Injury Leave: This is paid leave for illness or injury not related to work, with specific durations depending on the situation.
• Disability Benefits: These provide financial assistance in the event of work-related disabilities.
• Old-age Allowance: This is financial support for elderly individuals who meet specific criteria.
• Death Benefits: In the event of an employee's death, financial assistance is provided to the family.

Employment Insurance (EI)

EI is primarily focused on providing support during periods of unemployment. Employees who involuntarily lose their jobs under specific conditions may be eligible for:

• Unemployment Benefits: These offer partial income replacement for a set period.
• Vocational Training Benefits: These provide opportunities to develop new skills and improve employability.

Other Mandatory Benefits

Apart from social insurance programs, employers in Taiwan are also required to provide several other mandatory benefits:

• Annual Leave: The minimum number of paid leave days is based on years of service, ranging from 3 days for less than a year to 30 days for 10+ years.
• National Holidays: Employees are entitled to paid leave for official holidays mandated by the government.
• Labor Accident Insurance: This provides coverage for medical expenses, rehabilitation, and disability benefits in the event of work-related accidents or injuries.

In Taiwan, many employers offer optional benefits to attract and retain talent, going beyond the legal requirements.

Financial and Allowance Benefits

Housing Allowances: These are primarily offered to expatriates and senior executives to help offset housing costs in major cities.

Meal Allowances or Subsidized Meals: Employers provide financial support for meals, either as a fixed allowance or through subsidized cafeterias. The allowance amount is determined by the employer and can be partially tax-exempt.

Transportation Allowances: This is financial assistance to cover commuting costs, especially for employees who don't have company-provided transportation.

Health and Wellness Benefits

Supplemental Medical Insurance: Employers offer additional health insurance plans that go beyond the coverage provided by National Health Insurance (NHI), often extending to spouses and dependents.

Employee Assistance Programs (EAPs): These are confidential counseling and support services to help employees manage personal or work-related challenges.

Perks and Lifestyle Benefits

Flexible Working Arrangements: Employers provide options like remote work, flexible hours, or compressed workweeks to promote work-life balance.

Mobile Phone Reimbursement: Employers provide or subsidize the cost of a mobile phone for work purposes.

Education Allowances: Employers provide financial assistance for employees pursuing further education or professional development.

Shopping Discounts: Employers negotiate discounts with specific retailers or merchants.

Company Events and Outings: Employers organize social activities to foster team building and employee morale.

Additional Considerations

The specific benefits offered by an employer can vary greatly depending on factors like industry, company size, and company culture. Some employers might offer unique benefits tailored to their workforce demographics or niche.

Taiwan has a comprehensive National Health Insurance (NHI) program that covers all legal residents, including foreign workers.

Compulsory Enrollment under NHI

All employees in Taiwan are required to enroll in the NHI program. This includes both Taiwanese citizens and foreign nationals with legal residency. Employers are responsible for registering their employees with the NHI program upon their start date. There's a grace period of six months for foreign residents who haven't been employed in Taiwan. After six months of continuous residence, they can enroll through a relative's insurance or their local administrative office.

Contribution Rates

The NHI program is financed through contributions from employers, employees, and the government. Employers contribute 60% of the premium. Employees contribute 30% of the premium. The remaining 10% is covered by the government. The premium is calculated as a percentage of the employee's gross salary, with a set monthly maximum.

Taiwan's retirement security for its workforce is a two-pronged approach. It includes mandatory public pension schemes and optional supplementary plans.

Mandatory Public Pension Schemes

Mandatory public pension schemes form the foundation of retirement income in Taiwan. They provide a safety net for employees. The two main schemes are:

• Labor Pension: This is a defined-contribution plan. The amount received upon retirement depends on contributions made throughout your working life. Both employers and employees contribute a fixed percentage of your salary to your individual Labor Pension account. This account is managed by the Bureau of Labor Pensions.

• National Pension: This scheme covers self-employed individuals, part-time workers, and those not enrolled in the Labor Pension. Contributions are made entirely by the individual. The benefit amount is calculated based on your total contribution and national average wage.

These mandatory schemes provide a basic level of income replacement upon retirement.

Optional Supplementary Plans

While the public schemes provide a baseline, some individuals might seek additional income in retirement. Here are some options to consider:

• Company Pension Plans: Some employers offer voluntary company pension plans. These can significantly boost your retirement savings. These plans can be defined-benefit (pension based on a formula) or defined-contribution (employee and/or employer contributions).

• Individual Retirement Accounts: While not as common as in some other countries, some financial institutions in Taiwan offer individual retirement accounts. These allow for personal contributions towards retirement savings, often with tax benefits.