2010-02-01

Taiwan to Change the Ratios of Foreign to Domestic Labor Permitted for 3 K Industries

Taiwan‘s Council of Labor Affairs (CLA) determines the ratio of foreign labor to domestic labor according to the nature of the industries that employ such labor. Currently, the ratios of foreign to domestic labor are either 15%, 18% or 20%. However, the so-called 3 K Industries [Note] have complained to the Industrial Development Bureau (IDB) Ministry of Economic Affairs that they are severely undermanned with labor. As a result, CLA plans to adopt the suggestions of IDB and change the ratios of foreign labor to domestic labor to 10%, 15%, 20%, 25% and 35%. In other words, the ratio of foreign labor to domestic labor is expected to increase up to 35% for certain industries.

CLA further indicates that the ratio of 35% will be applicable to 3 K Industries and not to the high-tech industries because salaries and working environments at high-tech industries are more attractive to domestic labor. Therefore, the minimum ratio of foreign labor to domestic labor will be lowered from 15% to 10% to meet the domestic need for jobs. Notwithstanding the aforesaid, IDB will determine the actual ratio of foreign labor on a case-by–case basis.

According to IDB, whether a company can be defined as a 3 K Industy and which ratio shall be applied to the company will in the future be decided subject to the number of persons insured under the Labor Insurance, rather than by examining the facilities or equipments owned by the company.

Note: The term “3 K” Industries, refers to the Japanese words 汚い(Kitanai) (dirty), 危険(Kiken) (dangerous) and きつい(Kitsui) (demanding), which domestic laborers are less willing to engage in and as a result, these industries suffer from a severe lack of manpower.
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