Newsletter
TOP LABOR INSURANCE SAL-ARY BAND INCREASED; LIA UNDER AMENDMENT TO PRO-TECT OLDER WORKERS' RIGHTS
The maximum monthly salary for calculating labor insurance premium has increased from NT$42,000 to NT$43,900, effective from 1 July 2006.
The Labor Insurance Act (LIA) provides that an employer arranging labor insurance coverage for its workers must commence coverage on the day a worker takes up employment, and cease cov-erage on the day the worker leaves employment. Thus a worker who continues working beyond age 60 may continue to participate in the labor insurance scheme.
In line with the trend for working to be extended into an older age, and to assure the right of older workers to enjoy labor insurance coverage, the Council of Labor Affairs (CLA) is seeking an amendment to the LIA to raise the age above which labor insurance coverage becomes op-tional to 65. For workers aged over 65 who have never participated in labor insurance nor received old-age benefits, and who resume employment, the CLA is seeking an amendment to include such workers within the scope of industrial injury insurance coverage. This measure will increase employers' willingness to employ older workers. The above amendments passed their first reading in the Legislative Yuan on 25 May 2006.