Premier Frank Hsieh (
Hsieh said that the Cabinet has been enduring an onslaught of criticism from local employers ever since the announcement of the new rules. Most complaints are about the potential payout increases that employers may have to give their employees.
"It is actually a new mechanism to assure and clarify responsibilities and prerogatives of both the employers and employees," Cabinet Spokesman Chou Jung-tai (
According to the new mechanism, employers will have to deposit 6 percent of an employee's monthly paycheck toward his retirement fund. The fund will follow the employee it he or she changes jobs, and the employee will be able to withdraw the money from the this account whenever they want.
"The premier believes that we can make it a win-win situation with this new mechanism," Chou said. "It is a flexible retirement arrangement for employees."
Chou also said that it is the Cabinet's policy to protect the poor, and this will always be a priority in government policy.
By following that policy, the government needs to make sure that the retirement account for low-income workers is configured so these people can work without worrying about losing their retirement money, or being abused by their employers.
"The new labor insurance rules were approved by the legislature before it is to be enforced. However, at the same time, we will also work on any necessary amendments whenever needed," Chou said.
"No matter what, it is the law and we should respect and follow it," he added.
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