Petitioning the Council of Labor Affairs (
"Because Taiwan's social security system is incomplete, workers rely on labor and national health insurance to provide maternity, medical care and disability benefits," said Chou Chia-chun (
PHOTO: CHU YU-PING, TAIPEI TIMES
But, she added, many lose this minimum protection when they lose their jobs because financial hardship prevents them from continuing to contribute.
Labor insurance in Taiwan funds injury -- both general and occupational, including medical care arising from it -- maternity, unemployment, elderly care and death benefits. Health insurance covers other medical costs.
Arguing for more state assistance
The Labor Legislation Action Council (
The Labor Insurance Act states that an unemployed person may continue to participate in the labor insurance system only if he or she has contributed to the scheme for over 15 years. After 15 years, the person's premiums are reduced from 6.5 percent to 5.5 percent of their most recent monthly salary.
Usually the company pays 70 percent of the labor insurance fee for each employee, while the government pays 10 percent and the employee the rest. An unemployed person pays 80 percent of the fee, with the government paying the balance.
Gu Yu-lin (
She said the state should contribute more to labor insurance payments for all the unemployed.
For health insurance, the petitioners asked the council to pay the full insurance fee for unemployed workers until they find a job.
Current rules
Currently, while an unemployed person may name a trade union as his or her "insured unit" -- the organization responsible under the Labor Insurance Act for transferring an individual's share of the premium to the government -- that share rises to 60 percent if the individual is unemployed. The government pays the balance.
An employee pays 30 percent of the health insurance fee, while the employer pays 60 percent and the government 10 percent. The premium is 4.25 percent of the employee's monthly salary. Usually, the unemployed and their families withdraw from the national health insurance plan because of financial problems.
Currently the council pays 30 percent of the health insurance fee for an unemployed person but only when the individual is the official head of a household. Moreover, the payment is limited to six months from the time individual's unemployment was registered at the local unemployment service center.
Council of Labor Affairs official Liu Kuo-hsiung (
Taiwan's jobless rate soared to an all-time high of 5.26 percent, or some 519,000 people, in September.
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