Taiwan raises basic salary for foreign workers

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Taiwan is currently one of Vietnam's major labor export markets. According to statistics from the Department of Overseas Labor, in the 10 months of 2021, the Taiwan market sent 19,388 workers to work.

Since 2022, the Taiwanese government has introduced many changes in favor of foreign workers such as increasing the basic salary, changing insurance premiums, etc. This is good news for foreign workers in Taiwan. Loan, including many Vietnamese workers.

What is the basic salary when going to Taiwan to work abroad?

In recent years, the Taiwanese government has continuously decided to increase wages for foreign workers working in Taiwan.

Basic salary for foreign workers in Taiwan increased from January 1, 2022

Accordingly, from January 1, 2022, the Taiwanese government once again decided to increase the basic salary for foreigners working in Taiwan, the increase is as follows:

For signed labor contracts in which the employee's basic salary is enjoyed on a monthly basis, the basic monthly salary is adjusted to increase from NT$24,000/month to NT$25,250/month, the increase margin is 5 .21% (an increase of NT$1,250/month compared to the current base salary).

For a signed labor contract where the employee's basic hourly wage is paid, the basic hourly wage is adjusted to increase from NT$160/hour to NT$168/hour, the increase margin is 5 .0% (an increase of NT$8/hour compared to the current base salary).

It is estimated that 1,942,800 workers are benefited at the base salary, while about 511,100 workers are entitled to an hourly wage.

Statistics from the Ministry of Labor estimate that the basic salary increase will benefit 1,942,800 workers, including 1,467,400 domestic workers and 475,400 migrant workers.

Insurance premium of Taiwan labor export in 2022

The Taiwanese government has an adjustment on the insurance premium for foreign workers

In addition to adjusting the basic salary increase, the Taiwanese government also introduced new regulations on insurance premiums of foreign workers as follows:

Labor insurance participation fee, in 2022, the total labor insurance participation fee is 10.5% compared to the employee's basic salary. In which, the employer pays 70%, the employee has to pay 20% and the host country supports 10%.

The labor insurance participation fee paid by foreign workers working in Taiwan from January 1, 2022 is calculated as follows: Labor insurance = Basic salary/month x Insurance coefficient labor 10.5% x payment coefficient 20% = NT$25,250 x 10.5% x 20% = NT$530/month.

Employees who work as domestic workers or take care of sick people at home are not required to participate in labor insurance.

Regarding the health insurance participation fee, the total health insurance participation fee of employees in 2022 is 5.17% compared to the employee's basic salary. In which, the employer pays 60%, the employee has to pay 30% and the host country supports 10%.

The fee to participate in health insurance of foreign workers working in Taiwan to pay from January 1, 2022 is calculated as follows: Health insurance = Basic salary/month x Insurance coefficient health care 5.17% x 30% coverage factor = NT$25,250 x 5.17% x 30% = NT$392/month.

Health insurance premiums apply to both domestic workers and caregivers at home.