Newsletter
DRAFT AMENDMENT TO LABOR INSURANCE ACT APPROVED
The Council of Labor Affairs (CLA) on 26 May 1999 approved draft revisions to the Labor Insurance Act (the Act). Under the proposed revisions, all employed persons are required to join the labor insurance program. In addition, the maximum age for compulsory participation is raised from 60 years to 65 years. Other highlights of the proposed revision are as follows:
Establish a labor insurance agent system and penalties for violations of the Act or the Act's management regulations. In order to regulate labor insurance agents, the competent authority is able to impose penalties according to severity of actions. The competent authority may impose fines ranging from NT$5,000 to NT$50,000, suspending agent operations for six months or more, and revoke business registrations.
Relax conditions for old-age benefits: Persons who have been insured for at least 25 years and who are at least 50 years old at the time of retirement may receive old-age benefits even if they were employed by more than one insured unit.
Increase occupational disability benefits. The ratio of occupational disability payments are increased from 50 percent to 60 percent under the Disability Benefits Payment Schedule.
Increase ordinary death benefits: The burial subsidy is increased from five months to ten months' payment units. For those that had insurance coverage of at least three years, the forty-month survivors' benefits shall be paid in one lump sum.
Increase death from occupational injury or disease benefits. The burial subsidy is increased from five months' to ten months' payment units and survivors' benefits are increased from 40 months to 45 months' payment units.