Newsletter
Amendments to the Enforcement Rules of the Labor Pension Act
Amendments to the Enforcement Rules of the Labor Pension Act
Susan Lo/Gloria Chu
On March 25, 2026, the Ministry of Labor amended and promulgated certain provisions of the Enforcement Rules of the Labor Pension Act. Except for Article 21 which will take effect on August 1, 2026 (pertaining to amendments regarding workers’ voluntary pension contributions), the remaining provisions came into force on March 27, 2026. The purpose of these amendments is to reinforce employers’ legal compliance obligations, safeguard workers’ rights to make voluntary pension contributions, and enhance the economic security of minor survivors and retirees.
The four principal highlights of these amendments are as follows:
1. Strengthening Employers’ Obligations to Implement Workers’ Voluntary Pension Contributions
The amendments impose a statutory obligation on employers to collect and remit voluntary pension contributions on behalf of workers. If an employer refuses to process a worker’s voluntary contribution procedures, the worker may report directly to the Bureau of Labor Insurance. The employer will remain obligated to fulfill the collection and remittance duties retroactively and may be subject to a surcharge for late payment.
The amendments impose a statutory obligation on employers to collect and remit voluntary pension contributions on behalf of workers. If an employer refuses to process a worker’s voluntary contribution procedures, the worker may report directly to the Bureau of Labor Insurance. The employer will remain obligated to fulfill the collection and remittance duties retroactively and may be subject to a surcharge for late payment.
2. Introduction of a “Cooling-off Period” for Monthly Pension Payments
To protect workers who may be unfamiliar with the process of selecting pension payment methods, the amendments provide that workers opting for monthly pension payments may, within 30 days from the date of the first payment, apply to change to a lump-sum pension payment. However, this change may only be exercised once, thereby balancing workers’ right to choose with administrative stability.
To protect workers who may be unfamiliar with the process of selecting pension payment methods, the amendments provide that workers opting for monthly pension payments may, within 30 days from the date of the first payment, apply to change to a lump-sum pension payment. However, this change may only be exercised once, thereby balancing workers’ right to choose with administrative stability.
3. Enhanced Time-Limit Protection for Minor Survivors Claiming Pension Benefits
To ensure the inheritance rights of minor survivors of workers, the amendments provide that if a survivor is a minor at the time he/she becomes eligible to claim pension benefits, the ten-year limitation period for making a claim shall commence from the date he/she attains majority. This measure prevents the forfeiture of claim rights due to the expiration of the limitation period caused by the survivor’s lack of legal capacity due to minority.
To ensure the inheritance rights of minor survivors of workers, the amendments provide that if a survivor is a minor at the time he/she becomes eligible to claim pension benefits, the ten-year limitation period for making a claim shall commence from the date he/she attains majority. This measure prevents the forfeiture of claim rights due to the expiration of the limitation period caused by the survivor’s lack of legal capacity due to minority.
4. Expansion of Legal Protection for Pension Benefits and Strengthening of Responsible Persons’ Liability
(1) Expanded Asset Protection:
The scope of protection prohibiting the assignment, offset, attachment, or use of pension benefits as security is expanded from the worker alone to include survivors and designated claimants. This ensures that the balance in the pension account will not be subject to compulsory enforcement, thereby safeguarding the livelihood of survivors.
(2) Joint and Several Liability for Settlement:
The amendments provide that, in the event of a change in the responsible person of a business entity, both the former and current responsible persons shall bear joint and several liability for the settlement of any outstanding labor pension contributions or surcharges incurred prior to the change, thereby strengthening employers’ legal compliance responsibilities.
These amendments reflect the government’s commitment to ensuring economic security for workers in old age. Enterprises are advised to review internal processes to ensure alignment with the voluntary contribution mechanism and to remain vigilant regarding the risk of outstanding pension contributions during changes in responsible persons. Lee and Li’s Labor Practice Group has long assisted enterprises in responding to amendments to labor laws and regulations. Should you require any assistance, please feel free to contact the experts in our Labor Practice Group at your convenience.