News
Labor Insurance Fund's future challenging
The Ministry of Labor (MOL) says a report has found that the Labor Insurance Fund has good short-term prospects due to recent premium and investment gains, but the future of the programme remains challenging.
The Labor Insurance Fund is a key source of funding for Taiwan's main basic pension programme and a report on the fund is released every three years.
According to MOL’s Department of Labor Insurance, the latest report estimates that the NT$1.1 trillion it had as of the end of November 2024 will dry up in 2031.
That's three years later than projected in the previous report three years ago, but labour insurance department officials are warning that hidden liabilities are continuing to surge.
Department head Chen Mei-nu says revenues from premiums already fall short of benefits paid out, but many factors will help keep the fund solvent in the near future. They include an increase in the number of insured people to 10.1 million, a higher salary basis on which premiums are paid, and a premium rate that recently rose to 11.5%. Chen says those factors will increase revenue from premiums by NT$280 billion from now through 2031.
