Cabinet approves bill to raise labor insurance eligibility age

This article was published by the Taiwan Headlines on April 27, 2006. It reports that the government in Taiwan recently approved a set of proposed amendments to the labor insurance law, which would lift the ceiling of eligibility to 65 years of age. The amendments would also expand compulsory insurance coverage to workers in firms that have less than four employees.

According to the government, if these amendments are approved by the Legislative Yuan, then they will provide comprehensive insurance coverage for virtually all of Taiwan's workforce and protect the rights of workers.

Currently, companies with five employees or more are required to take up membership in the labor insurance program. The new amendments propose to change the floor for compulsory membership in the labor insurance program to all firms, including those with four or fewer workers. Professional and technical employees would also be included in the program.

Meanwhile, the types of companies required to take up compulsory insurance coverage would be expanded to include fishery production, health and medical services, medical technical services, medical health insurance operations, and educational and civic organizations.

In addition to raising the age ceiling for compulsory inclusion from 60 to 65, the new amendments propose to allow workers over 65 years old to participate in the labor insurance program on a voluntary, instead of compulsory, basis.

Meanwhile, the new amendments also propose to begin payment of labor insurance benefits for injuries, illness or occupational diseases from the third day of which the worker in question is unable to work. The current requirement is that the worker should undergo treatment before receiving the benefits.

The new amendments propose that the government's Labor Insurance Bureau should have the power to determine the types of occupational diseases and benefit payment schedules. The Ministry of Economic Affairs and the Council of Labor Affairs would draft a comprehensive plan to assist small enterprises affected by the changes.