萬國法律事務所

Taiwan’s second-generation National Health Insurance (NHI) system is set to take effect this year in July. The main difference between the existing system and the second-generation NHI system is in the calculation of insurance premiums. Under the second-generation NHI, all NHI participants, including individuals and employers, will pay a supplementary premium. The new system will levy a 2% supplementary premium on other incomes, including but not limited to: stock dividends, rental income, interest, high bonuses, and income from professional practices in excess of NT$ 2000.

For employers, the supplementary premium is based on the difference between the total monthly salary paid and the total monthly insured payroll-related amount for employees. For employers offering a regular salary as the primary part of employees’ compensation, the premium will likely be similar to that in the current existing system. However, the new system will demand higher premiums from employers offering irregular compensation, classified as income tax format code 50, such as bonuses and other , compensation and rewards, and levy a 2% premium on the difference between the total monthly salary expense paid and the total monthly insured payroll-related amount for employees. There will be no minimum limit for the supplementary premium paid by employers.

The 2nd-generation NHI system will have a substantial impact on employers hiring highly-compensated R&D engineers or part-time employees. The 2% supplementary premium will be based on high salaries and part-time incomes.

Those with a professional practice may not have to pay an additional premium if they are not employed by entities, and the new system will not levy a supplementary premium from their practice income. Likewise, members of professional associations will not have to pay the supplementary premium for part-time income.

The new two-track premium system will help to strengthen the financial structure of the existing NHI system. Officials estimate and hope that the 2% levy will boost the premium base and thus increase the total premiums income by NT$ 20 billion.