Newsletter
LATEST RULINGS ON LABOR PENSION ACT
The Council of Labor Affairs recently issued a number of interpretations to clarify issues re-garding the application of the Labor Pension Act (LPA). The main points are as follows:
If a worker to whom the LPA pension system applies takes more than 30 days' ordinary sick leave or injury leave during one year, and the continuation of such leave with the employer's consent results in the worker’s receiving no salary during an entire month, the employer should pay pension contributions for that month according to the lowest income band (NT$1500) of the monthly contributions table.
A company director, a company president and CEO, a managing chairperson of a credit co-operative, or a responsible officer of a com-pany who provides services to the entity con-cerned, may make voluntary pension fund contributions as an "employer who performs labor," but the entity may not make pension fund contributions on his behalf.
Under the LPA, severance pay is calculated at 0.5 months' average salary per year of service; any incomplete year of service is to be calcu-lated pro rata according to the number of months and days actually worked.