Taiwan increases basic salary for foreign workers to 21 million VND/month

On December 13, the Department of Overseas Labor Management (Ministry of Labor, War Invalids and Social Affairs) sent a dispatch to businesses sending workers to work in Taiwan (China) to notify them of Taiwan's increase in basic wages and adjustment of social insurance contributions for workers.

The official dispatch of the Department of Overseas Labor Management said that this agency has received Official Dispatch No. 320 from the Vietnam Labor Management Board in Taiwan (China) regarding the Taiwanese competent authority's approval to increase the basic salary according to the roadmap from January 1, 2024.

Accordingly, the new basic salary applied from January 1, 2024 will be adjusted to increase from NT$26,400/month to NT$27,470/month, an increase of 4.05% (an increase of NT$1,070/month compared to the current basic salary). This basic salary applies to employees who sign contracts and receive monthly salaries.

From January 1, 2024, the new basic salary for workers in Taiwan (China) is 27,470 NTD (Photo: Nguyen Son).

For labor contracts signed in which the basic hourly wage of the employee is paid, the basic hourly wage is adjusted to increase from NT$176/hour to NT$183/hour, an increase of 3.98% (an increase of NT$7/hour compared to the current basic wage).

In the case of the new basic wage of NT$27,470/month, the deduction rates for labor insurance premiums and medical insurance premiums for foreign workers working in Taiwan will be adjusted as follows:

Regarding the labor insurance premium, in 2024, the total labor insurance premium is 11.0% of the employee's basic salary. Of which, the employer pays 70%, the employee must pay 20% and the local authority supports 10%.

The labor insurance premium for foreign workers working in Taiwan from January 1, 2024 is calculated as follows: Labor insurance = Basic salary/month x Labor insurance premium coefficient 11.0% x payment coefficient 20% = NT$27,747 x 11.0% x 20% = NT$604/month.

Workers doing housework or taking care of sick people at home are not required to participate in labor insurance.

Regarding health insurance premiums, the total health insurance premium for employees in 2024 is 5.17% of the employee's basic salary. Of which, the employer pays 60%, the employee must pay 30% and the local authority supports 10%.

The health insurance premium for foreign workers working in Taiwan from January 1, 2024 is calculated as follows: Health insurance = Basic salary/month x Health insurance premium coefficient 5.17% x payment coefficient 30% = NT$27,470 x 5.17% x 30% = NT$426/month.

Health insurance premiums apply to both domestic workers and home care workers.

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