The Council of Labor Affairs yesterday released statistics showing that the Employment Security Fund, which finances welfare benefits for Taiwanese workers, is NT$1.4 billion short because of defaults by employers of foreign workers.
The council explained that NT$90 million of the NT$1.4 billion is made up of overdue payments, which the council is attempting to collect. Those employers who fail to pay their overdue payments will be charged 1 percent of their outstanding balance daily until the debt is cleared.
Some NT$50 million, on the other hand, is unpaid because of employers' bankruptcies and deaths, and must therefore be written off, the council said.
Since 1999, Taiwanese employers hiring foreign workers have been required to pay a monthly fee to the Employment Security Fund, which is used to create benefits for local workers.
The fund is currently worth NT$12 billion.
Under the regulations, employers from traditional manufacturing industries must pay NT$2,000 per month per foreign worker, while those from the construction industry must pay between NT$2,000 and NT$3,000. Families hiring foreign house-keepers pay NT$5,000 monthly, while families hiring foreign care-givers pay NT$1,500 to 2,000.
In a bid to collect overdue payments, the council will issue invoices every two months beginning next year. Employers who fail to pay within 30 days could be prohibited from hiring foreign workers.
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