A coalition of trade unions yesterday demanded that the minimum required contributions of companies to employee pension accounts be increased to improve the finances of workers when they retire.
The Labor Pension Act (勞工退休金條例) stipulates that employers must put at least 6 percent of an employee’s salary into an employee’s pension account every month.
The employee can collect the amount contributed as a lump sum or a monthly annuity after they turn 60.
Photo: CNA
That has been the standard since the act took effect in 2005, Chiang Chien-hsing (江健興), head of the Taiwan Confederation of Trade Unions, told a rally outside government offices in Taipei.
It is time for a change, Chiang said.
Chiang said he learned through conversations with union members across Taiwan that the 6 percent rate has become their greatest concern, as they could face poverty in their retirement.
Taiwan Federation of Financial Unions head Chung Fu-chi (鍾馥吉) said that the act stipulates a 6 percent minimum contribution, but employers treat it as a maximum rate and refuse to go higher.
Whenever unions petition for the rate to be increased, the government says it is an issue that should be settled through labor-management negotiations, ignoring that workers have less bargaining power, Chung said.
The rate should be increased to 12.5 percent, which would serve as a base for labor-management negotiations, he said.
Chiang did not offer a specific rate, but used a previous Labor Standards Act (勞動基準法) rule as a benchmark.
Under those provisions, workers received a lump sum pension payment of the average monthly salary that an employee was paid in the six months prior to retirement multiplied by 45, Chiang said.
That meant a worker who earned NT$50,000 (US$1,557) per month and retired after working for 30 years would receive a lump sum of NT$2.25 million, while today’s rules only allow NT$1.08 million (NT$3,000 per month for 30 years), he said.
However, people had to work for the same employer for 25 consecutive years or have been at least 55 and worked for the same employer for 15 years to be eligible for the payout under the old system, conditions that left 90 percent of people without a pension, he said.
In Taiwan, most private-sector employees rely on the labor insurance system for retirement benefits rather than the labor pension system because of the high eligibility threshold under the Labor Standards Act.
However, the labor insurance benefits are relatively low and the labor pension system has been emphasized since the Labor Pension Act was passed because pensions would supplement labor insurance system payments.
Chung called on the candidates in January’s presidential election to announce their support for increasing the pension contribution rate to gain support from workers.
The ministry said in a statement that a legislative change would require all parties to reach a consensus.
Until then, employers and employees could negotiate higher contribution rates in collective bargaining agreements, it said.
SAFETY IN REGULATION: The proposal states that Chiayi should assess whether it is viable to establish such a district and draft rules to protect clients and sex workers The Chiayi City Council passed a motion yesterday to assess the viability of establishing a regulated red-light district. The council yesterday held its last session of the year, at which its fiscal 2024 budget was approved, along with 61 other proposals. The proposal to assess the viability of establishing a red-light district was put forward by independent Chiayi City Councilor Molly Yen (顏色不分藍綠支持性專區顏色田慎節). The proposal cited 2011 amendments to the Social Order Maintenance Act (社會秩序維護法), which stipulate that city and county governments can pass autonomous regulations on the sex trade to manage the industry and guarantee industry workers’ rights. A ban on the
STABILITY AND CHANGE: Flagging in recent polls, Ko this week pledged to maintain President Tsai’s foreign policy, with an emphasis on improving China relations Taiwan People’s Party (TPP) Chairman and presidential candidate Ko Wen-je (柯文哲) yesterday reiterated that he is “deep-green at heart” in response to accusations that he is pivoting his campaign to align closer with the ideology of the Democratic Progressive Party (DPP) in the face of flagging polls. Ko made the remark at an agricultural policy conference in Taipei, repeating his comments from an interview with CTS News a day earlier. Ko told the CTS host that he would continue to pursue President Tsai Ing-wen’s (蔡英文) national defense and foreign policy in general, but with an emphasis on establishing a rapport with
CHINA illness surge: Of 88 travelers from China, Hong Kong and Macau with respiratory symptoms who were encouraged to get tested upon arrival, 70.6% had the flu Two hundred and sixty people with COVID-19 were hospitalized and 31 deaths related to the virus were reported last week — the highest numbers in four weeks, the Centers for Disease Control (CDC) said yesterday, adding that cases are expected to peak next month. CDC Epidemic Intelligence Center Director Guo Hung-wei (郭宏偉) said that of the 260 people hospitalized last week with moderate to severe COVID-19, 98 percent had not received the Omicron XBB.1.5-adapted COVID-19 vaccine. Among the people hospitalized this year, 78 percent were aged 65 or older, while most of the those who were hospitalized or died have or had
Taiwanese who have recently traveled to China for tourism, to visit friends or relatives or for business reasons have been interrogated, detained and faced other forms of unreasonable treatment from Chinese officials, a source said on Sunday. Among them was a Taiwanese who was detained for eight hours at an airport in China due to their research, which is related to religion, while others have had their travel documents for China canceled for a number of reasons, the source said. In July, China expanded the scope of its counterespionage law, and recently announced a draft amendment to the law on the protection