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Labor Insurance + Labor PensionTW-specific

Taiwan employees (including foreign nationals with work permits) are covered by two parallel mandatory pension schemes. This tool estimates the combined monthly benefit at retirement, including the optional 0–6% self-contribution tax benefit.

Inputs

Above the Labor Insurance (勞保) insured-salary cap of NT$45,800; the calculation uses the cap.

Check your actual years of service via the Bureau of Labor Insurance e-Service portal.

Self-contributions are deductible from salary income (tax-free up to the cap).

Results
Total monthly income in retirement
NT$45,144 / month
Labor Insurance NT$28,396 + Labor Pension NT$16,748
Total years of service at retirement
40 years
Salary at retirement (estimated)
NT$99,994

Labor Insurance old-age pension (勞保老年年金)

Average insured monthly salaryNT$45,800
Formula A: salary x years x 0.775% + 3,000NT$17,198
Formula B: salary x years x 1.55%NT$28,396
Monthly pension (higher of the two)NT$28,396

Labor Pension (勞退新制, individual account)

Employer contribution (avg/month)NT$4,324
Self-contribution (avg/month)NT$0
Account balance at retirementNT$3.02M
Monthly annuity (estimated)NT$16,748

Based on 2024 Bureau of Labor Insurance caps and formulas (Labor Insurance insured-salary cap NT$45,800; Labor Pension contribution-wage cap NT$150,000). The monthly Labor Pension annuity uses a simplified 20-year annuitization. Actual amounts are determined by the Bureau; caps and formulas may be revised annually.

Formula references (2024)

  • Labor Insurance: monthly pension = higher of A (0.775% × years + NT$3,000) or B (1.55% × years), with insured salary capped at NT$45,800
  • Labor Pension: employer mandatory 6%, employee optional 0–6% (tax deductible); accumulated in individual account; annuitized at retirement if 15+ years service
  • Eligibility: 15+ years for monthly pension under both schemes

See the Labor Pension article for background.

Frequently asked

Is Labor Insurance (勞保) the same as Labor Pension (勞退)?
No. Labor Insurance is a social insurance scheme (pooled risk, similar to NHI) that pays a formula-based old-age pension. Labor Pension is an individual defined-contribution account (mandatory 6% from employer, optional 0-6% from employee). At retirement you draw from both, but they're computed differently.
Should I make the optional 6% Labor Pension self-contribution?
Usually yes for mid- and high-income earners. Self-contribution is deductible from that year's salary income (tax savings), and the Labor Pension fund is government-guaranteed against loss below the 2-year time-deposit rate. NT$1M income with 12% marginal rate × 6% self-contribution = NT$60K contributed, NT$7,200 tax saved (≈ 12% effective uplift on that contribution).
Can I take a lump sum at retirement?
Labor Insurance: monthly pension requires 15+ years of service; below that, lump sum only. Labor Pension: 15+ years gives you the choice between monthly annuity (life-expectancy formula) and lump sum; below 15 years, lump sum only. Monthly suits longevity hedging; lump sum suits people who want to self-invest or pay off a mortgage.
What if Labor Insurance becomes insolvent?
There is real actuarial pressure on Labor Insurance, projected to be most severe around 2028-2030. Likely policy responses: raise contributions, delay eligible retirement age, or trim payout formulas. Plan as if Labor Insurance is a 'baseline floor' and rely primarily on Labor Pension + personal savings.
Do foreign workers in Taiwan get Labor Insurance and Labor Pension?
Yes. Foreign nationals with valid work permits are mandatorily enrolled in both, and the optional self-contribution is also available. If you leave Taiwan before 15 years of service, lump sum only; over 15 years, monthly annuity is available (confirm overseas payment rules with the Bureau of Labor Insurance).
Does this tool store my salary or service data?
No. All calculations run in your browser. Nothing is uploaded.

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