TAIPEI (TVBS News) — The Taiwanese government has introduced a new program aimed at retaining skilled foreign workers for the long term, which will allow more foreign workers to qualify for "old-age benefits."
However, this has sparked concerns among experts about increased financial pressure on the labor insurance system. Therefore, they recommend a one-time payment approach to mitigate these concerns.
Liu Hsiu-ling (劉秀玲), head of the Ordinary Accident Insurance Section at the Bureau of Labor Insurance (勞保局, BOLI), stated that 1.8 million people currently receive old-age pensions, with an average payout of NT$18,000. As of last year, 378 foreign, insured individuals have been receiving old-age pensions.
For over 30 years, Taiwan has allowed foreign workers to come to the island, and many now qualify for old-age benefits. In the past five years, foreign nationals have applied for NT$1.63 billion in old-age benefits, with individual lump-sum amounts ranging from NT$50,000 to NT$110,000.
The Ministry of Labor (MOL, 勞動部) noted that, due to Article 52 of the Employment Service Act (就業服務法), migrant workers in the industrial sector can not work for more than 12 years, and migrant caregivers can not work for more than 14 years. This makes them ineligible for old-age pensions and allows them to only claim a lump-sum payment.
The Executive Yuan's approval of the "long-term retention of skilled foreign workers program" (移工留才久任方案) means that more foreign workers will have the opportunity to work in Taiwan for up to 15 years, qualifying them for old-age pensions.
Lin Chi-wei (林奇葳), general manager of a local job bank, believes this measure will provide foreign workers with greater security, stability, and a sense of belonging.
Lu Jung-ho (盧榮和), associate professor of Risk Management and Insurance at Ming Chuan University (銘傳大學), emphasized the need for sustainability in considering old-age pensions. He suggested legislation to restrict lifetime pension benefits to citizens or long-term residents to maintain balance in the labor insurance system.
As employment terms for foreign workers relax and wages rise, the financial calculations for labor insurance will need to be recalibrated to ensure the people's welfare remains secure.