Types of insurance to pay for foreign workers when working in Taiwan

Like all Taiwanese workers, foreign workers working legally in Taiwan will be required to pay insurances as prescribed by law such as Labor Insurance; Health Insurance…

The Insurance or Income Tax will help foreign workers working in Taiwan to be guaranteed the same benefits as local workers.

Labor insurance

Labor insurance is attached to the interests of each employee.

In Taiwan, Labor Insurance will have 2 main types of insurance:  Ordinary Accident Insurance and Occupational Accident Insurance. These two types of insurance will have different contributions and benefits for employees:

General breakdown insurance:

For General Accident Insurance, employees will have the following obligations and benefits:

Obligations: in 2022, the total premium for participation in labor insurance is 10.5% of 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.

Benefits: Employees will be entitled to insurance regimes in the following cases: Maternity; Diseases; Disabled; Retire; Dead. Note that the retirement case applies to those who pay insurance premiums for 15 consecutive years and are 60 years of age or older. You can apply for a one-time pension before returning home.

Occupational accident insurance (occupation):

 Obligations: This is the amount the employer must pay 100%, the employee

You are not required to pay this insurance.

Benefits: Foreign workers are entitled to 4 basic rights which are:

Diseases; Handicapped; Mortality and Hospital Costs.

Health Insurance 

For health insurance, employees will be obliged: For foreign workers working in Taiwan from 2022, the health insurance premium is 5.17% of the employee's basic salary. motion. 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 medical 5.17% x 30% coverage factor = NT$25,250 x 5.17% x 30% = NT$392/month.

Workers need to participate in Health insurance while working in Taiwan.

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

Benefits: When paying Health Insurance, employees will enjoy full benefits of medical examination and treatment at private or state-owned medical facilities in Taiwan.

Employees receive medical examination and treatment services at a cost of about NT$80-150 (about VND100,000 - VND200,000). Out-of-pocket costs depend on the size of the facility or the disease.

Insurance is a benefit associated with employees, so employees need to know the information and legal regulations on this issue to be able to ensure their own interests.