Thu, May 24, 2007 - Page 4 News List

CLA proposes amendments to Labor Pension Act

STAFF WRITER , WITH CNA

The Council of Labor Affairs (CLA) has come up with a draft package of amendments to the Labor Pension Act (勞工退休金條例) which would extend the portable labor insurance program to cover self-employed individuals, officials said yesterday.

According to the portable labor pension system that took effect July 1, 2005, employed people who pay a portion of their monthly salaries to set up individual retirement accounts can receive a monthly pension of at least NT$3,000 after they retire at the age of 60.

As a large number of Taiwanese are not employed by any company or organization, the officials said, the council plans to amend the labor pension rules to allow those who do not have stable or permanent employment to join the new labor pension program.

According to the proposed amendments, the officials said, taxi drivers, street vendors and SOHO (small office, home office) business operators would be included in the labor pension expansion plan.

An estimated 1.4 million people in those categories are expected to benefit from the proposed revisions, the officials said, adding that self-employed people will be encouraged to take part in the pension program and regularly deposit up to 6 percent of their monthly wages to establish their retirement accounts.

Like other wage earners covered in the program, those who are self-employed would receive subsidies from the government that would remit proportional funds into their accounts, the officials said.

Self-employed insurance policy holders would be able to get a monthly payment from the age of 60 if they have paid insurance premiums for a required minimum period.

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