Retirement System

Retirement System

Retirement System

Employee Pension System and Its Implementation:

Pension System

Old System

New System

Source of Applicable LawLabor Standards Act

Labor Pension Regulations

How to Withdraw2% of the employee’s total monthly salary is appropriated and deposited into the company’s special account in the Bank of Taiwan.

According to the employee’s insurance level, 6% is allocated to the personal account of the Labor Insurance Bureau.

Withdrawal AmountIn December 2022, the balance of the labor retirement reserve account is NT$40,354,000.

A total of NT$13,202,000 will be appropriated in 2022.

  • [1] Retirement method of the old system: The company has formulated the labor retirement method according to the law, and established a labor retirement reserve supervision committee to allocate the old system retirement reserve fund and deposit it into a Taiwan bank trust account in accordance with the regulations to protect the rights and interests of employees.
    The current retirement reserve fund has reached the current value of the total amount of pensions that all employees will meet the retirement requirements in the future, and the suspension of appropriation shall be handled with the competent authority in accordance with the Labor Retirement Reserve Fund Appropriation and Management Measures.
  • [2] The new pension system: After the implementation of the Labor Pension Regulations (New Work Retirement System) on July 1, 1994, the company adopted the new pension system in parallel, and contributed 6% of the labor salary to the employee’s personal pension on a monthly basis Special account; for those who have voluntarily contributed pensions, they will also be withheld from the monthly salary of employees according to the voluntary contribution rate to the individual pension special account of the Labor Insurance Bureau.
  • Third, the company’s applicable retirement regulations are as follows:
  1. An employee may apply for retirement in one of the following situations:
    • (1) Those who have worked for more than 15 years and have reached the age of 55.
    • (2) Those who have worked for more than 25 years.
    • (3) Those who have worked for more than 10 years and have reached the age of 60.
  2. Employers shall not force employees to retire unless they are under one of the following circumstances:
    • (1) Those who are over 65 years old.
    • (2) Physically and mentally handicapped to be unfit for the worker.
    • The age stipulated in subparagraph (1) of the preceding paragraph may be adjusted by the business unit to the central competent authority for workers with special characteristics such as dangerous and strong physical strength. But not less than 55 years old.
  3. Pension payment standard:
    • (1) The old system of pension is based on the employee’s working experience, and two bases are given for each full year. However, for those who have worked for more than 15 years, one base is given for each full year, and the maximum total number is limited to 45 bases. Less than half a year is counted as half a year; half a year is counted as one year. The calculation of the pension base is based on the average salary of the six months before the approved retirement.
      For compulsory retirement employees, if their physical and mental disabilities are caused by performing duties, an additional 20% shall be paid in accordance with the provisions of the preceding paragraph.
    • (2) For employees who are subject to the new pension regulations of the Labor Pension Act, the company will contribute 6% of their salary to the employee’s personal pension account on a monthly basis.
  4. Payment of pension: The company shall pay the employee’s pension within 30 days from the date of retirement.
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