萬國法律事務所

Taiwan's Labor Act stipulates that Employers shall allocate labor pension reserve funds ranging from 2% and 15% of the total monthly wages of their employees and deposit such amount in a designated account. Before the end of each year, employers are required to assess the balance in said designated labor pension reserve funds account. If the amount is inadequate to pay pensions calculated according to the Act, the employer is required to make up the difference in one allocation before the end of March in the following year and submit the statement to the Business Entity Supervisory Committee of the Labor Retirement Reserve for review.

Labor Ministry officials announced to the media that 9,753 companies have failed to contribute enough pension funds to be in compliance with the Act. As such, labor agencies from relevant local governments have issued 27 administrative decisions imposing fines on some companies and urging that the companies make a complete contribution to the pension funds.

The Labor Ministry also explains that if it discovers insufficient contributions of pension funds, it will allow employers to explain the reason for the shortfall. If employers have difficulty making a full contribution in one allocated payment, they may seek an extension of time to make the full contribution.