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Taiwan Social Contributions Guide

Taiwan mandatory social contributions for 2026. The guide covers: the National Health Insurance (NHI) at 5.17% — the employee pays 30% (1.55% of the monthly salary), the employer pays 60%, and the government subsidises 10%; the Labor Insurance at 10.5% — the employee pays 20% (2.1% of the salary), the employer pays 70%, and the government pays 10%; the Labor Pension at 12% — the employee contributes 50% (6% of the salary) and the employer matches the other 50%; the contribution ceilings and the calculation methods.

National Health Insurance (NHI) — 全民健康保險

  • Premium rate — 5.17%: The NHI premium rate for 2026 is 5.17% of the monthly salary. The rate is set by the NHI Administration and applies to the "insured salary" (the "投保薪資") — the monthly salary within the contribution ceiling of TWD 219,500 (the "ceiling for 2026").
  • Employee share — 30% (1.55% of salary): The employee pays 30% of the total premium — 5.17% × 30% = 1.55% of the monthly salary. The employer deducts the employee share from the salary and remits it to the NHI Administration together with the employer share.
  • Employer share — 60% (3.10% of salary): The employer pays 60% of the total premium — 5.17% × 60% = 3.10% of the employee's monthly salary. The employer also covers the full premium for the dependents (the "眷屬" — the spouse, the children, and the parents) at the same rate.
  • Government subsidy — 10%: The central government subsidises 10% of the NHI premium. The subsidy is paid directly to the NHI Administration and does NOT appear on the pay slip.

For example: an employee earning TWD 100,000/month pays TWD 1,550/month for NHI (TWD 100,000 × 5.17% × 30%). The employer pays TWD 3,100/month. The total NHI contribution is TWD 5,170/month plus the government subsidy.

Labor Insurance — 勞工保險

  • Premium rate — 10.5%: The Labor Insurance premium rate for 2026 is 10.5% of the monthly salary (the "普通事故保險費率" — the "ordinary accident insurance rate"). The rate includes the "employment insurance" (the "就業保險" — the "employment insurance" at 1%).
  • Employee share — 20% (2.1% of salary): The employee pays 20% of the total premium — 10.5% × 20% = 2.1% of the monthly salary. The maximum insurable salary ceiling is TWD 219,500 per month for 2026.
  • Employer share — 70% (7.35% of salary): The employer pays 70% of the total premium — 10.5% × 70% = 7.35% of the employee's monthly salary.
  • Government subsidy — 10%: The government subsidises 10% of the Labor Insurance premium.

For example: an employee earning TWD 100,000/month pays TWD 2,100/month for Labor Insurance. The employer pays TWD 7,350/month. The total contribution is TWD 10,500/month plus the government subsidy.

Labor Pension — 勞工退休金

  • Contribution rate — 12%: The Labor Pension (the "defined contribution plan" under the "Labor Pension Act" — 勞工退休金條例) requires a total contribution of at least 12% of the monthly salary. The maximum insurable salary ceiling is TWD 150,000 per month.
  • Employee share — 50% (6% of salary): The employee may choose to contribute between 0% and 6% of the salary to the Labor Pension. The default and the most common rate is 6% (50% of the total 12% requirement).
  • Employer share — 50% (6% of salary): The employer is required to contribute at least 6% of the employee's monthly salary to the employee's individual Labor Pension account. The employer contribution is mandatory and cannot be deducted from the employee's salary.
  • Voluntary top-up: The employee may contribute an additional 6% (for the total employee contribution of up to 12%). The voluntary contributions are tax-deductible up to TWD 108,000 per year.

For example: an employee earning TWD 100,000/month with the standard 6% employee contribution has TWD 6,000 deducted from the salary, and the employer contributes another TWD 6,000 — total TWD 12,000/month into the pension account.

FAQs

Are these contributions tax-deductible?

The employee contributions to NHI and Labor Insurance are tax-deductible (the "保险费扣除额" — the "insurance deduction") up to TWD 24,000 per person per year for the NHI premium. The Labor Pension employee contribution is tax-deductible up to TWD 108,000 per year.

Do foreign workers pay these contributions?

Yes. The foreign workers employed in Taiwan are subject to the same NHI, Labor Insurance, and Labor Pension rules as the Taiwanese employees, provided they hold the valid work permits and the ARC (the "Alien Resident Certificate"). The foreign workers without the ARC are NOT eligible for the NHI.

What happens to the Labor Pension when leaving Taiwan?

The foreign worker who leaves Taiwan permanently may apply for the lump-sum withdrawal of the employee's own Labor Pension contributions. The employer's contributions remain in the account and cannot be withdrawn.