TAIPEI (TVBS News) — Taiwan's 2025 labor insurance premium rate will rise by 0.5 percentage points after the government raised its minimum wage to NT$28,590. Since the cost-sharing ratio is 2:7:1 among workers, employers, and the government, workers must pay NT$56 more, while employers will pay an additional NT$195 per employee.
This change will raise statutory costs for an estimated 609,000 businesses or employers by over NT$12.47 billion annually. Employers worry about the rising burden of labor insurance costs. However, experts argue that labor insurance premiums are not the largest component of labor costs.
"Labor insurance premiums will never be the largest proportion of labor costs," Lu Jung-ho (盧榮和), an associate professor of risk management and insurance at Ming Chuan University (銘傳大學), noted. "The key is the salary. Many criticize Taiwan's relatively low wages. With 70% of insurance costs borne by employers, the burden is not excessively high."
Although employers must consider other operational costs, including labor and health insurance, in addition to salaries, labor groups believe that only significant wage increases will substantially impact employers.
Tai Kuo-jung (戴國榮), secretary-general of the Taiwan Confederation of Trade Union (全國產業總工會), stated, "The minimum wage increase mainly affects microenterprises with less than nine employees."
"Minister of Labor Ho Pei-shan mentioned that they would propose measures to assist microenterprises. However, for most employers, unless they follow the minimum wage hike with regular raises, the impact of labor insurance costs will be minimal."
Despite international turmoil, Taiwan's businesses have seen increased profits, yet worker compensation has not grown proportionately. Experts suggest that the government should encourage companies to share their profit growth more actively.