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Labor insurance regulations pass

Two representatives from the Youth Anti-Debt Alliance yesterday chant slogans at a press conference at the Legislative Yuan to protest against the proposed amendment to the Labor Insurance Act, saying that the premiums are too high. The sign on the black bag reads “financial black hole.” PHOTO: CNA

The pan-blue-dominated Legislative Yuan yesterday approved a controversial amendment to the Labor Insurance Regulations (勞工保險條例) that would increase the labor premium rate by at least 1 percent.

Under the existing law, the premium rate ranges between 6.5 percent and 11 percent, but after passage of the Chinese Nationalist Party (KMT)-initiated amendment, the minimum premium rate will become 7.5 percent and increase annually until it reaches the maximum premium rate at 13 percent.

The legislature also passed a disputed amendment that would allow workers who lose their ability to work because of illness to apply for a monthly disability pension of a minimum of NT$4,000 (US$130).

The current regulation only allows laborers to apply for a sum of money according to the scale of their disability.

Another controversial amendment also passed its third reading. The amendment would allow laborers over age 60 who have worked for a period of 15 years to enjoy a monthly allowance.

“The new plan means that the younger you are, the more you have to pay.” — Vincent Chou, chairman of the Taiwan Young Democratic Union

The amendment would also allow laborers over 60 years old who have not worked for 15 years to apply for a one-time payment.

The amount of the monthly allowance and the sum of the one-time payment varies depending on the monthly salary of the insured person. For an employee with a monthly salary of NT$30,000, he or she could enjoy a monthly allowance of around NT$12,000.

After pushing through the amendments by calling for a vote, KMT legislators chanted “justice for laborers,” while Democratic Progressive Party (DPP) legislators, angry at the rate rises, chanted “the KMT deceives laborers,” inside the legislative building.

Meanwhile, the legislature agreed to increase the central government’s budget by NT$45.4 billion and then cut it by NT$19.6 billion, resulting in a net budget increase of NT$25.8 billion.

The Legislative Yuan also approved the central government’s NT$130.1 billion special budget request to help local governments finance a variety of spending programs to boost domestic demand.

However, the legislature rejected a proposal by the DPP that government chiefs responsible for drawing up plans to boost domestic demand step down if the nation’s economic growth fails to reach 5.2 percent this year.

In related developments, the legislature also passed an amendment to the Civil Servant Retirement Law (公務人員退休法) that would treat caregivers who worked in public day care centers between 1994 and 1996 as public officials.

Public day care center caregivers did not officially become public servants until 1997. The amendment allows their working experience in the three years prior to 1997 to be considered when they apply for retirement.

The legislature will discuss the premier’s nominees for the National Communications Commission today as planned despite the typhoon, Legislative Speaker Wang Jin-pyng (王金平) said.
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