Labor Insurance and National Health Insurance (NHI) for Business Owners in Taiwan

As an expat starting a business in Taiwan, navigating the intricacies of insurance can be overwhelming. This guide aims to provide self-employed persons, employers, and business owners, especially foreigners with a clear and concise guide to Labor Insurance and national health insurance (NHI) in Taiwan.

Key Takeaways

Q: What is my insured level for Labor Insurance?

The minimum monthly level for Labor Insurance starts at NTD 28,590 for employees. Please note that if an employer chooses to enroll in the Labor Insurance plan, the insured amount cannot be lower than the highest grade declared by any of the employees within the same company.

For example: As an employer, if your employee is insured with the company for NTD 30,300 of Labor Insurance, you cannot have a lower insurance level with the same company.

Q: What is my insured lever for National Health Insurance?

Effective January 1, 2025, if your company does not hire any other paid employees and you are self-employed professionals or technical personnel, the minimum insured monthly amount is NTD 34,800. For companies with fewer than 5 employees, the minimum insured amount is NTD 40,100. For companies with 5 employees or above, the minimum insured amount is NTD 45,800.

Labor Insurance: Mandatory for Employees, Optional for Employers

As an employer, you are not obligated to participate in Labor Insurance. However, it is a mandatory requirement for all employees. This scheme provides your workforce with financial protection in case of work-related accidents, injuries, or illnesses.

Minimum Insured Amount:
The insured amount level for Labor Insurance is determined based on the employee's monthly salary. If your company has no employees, the employer is not permitted to establish a Labor Insurance unit or enroll in Labor Insurance within the company.

For companies with fewer than five employees (0–4 people), establishing a Labor Insurance unit is not mandatory. However, if the employer opts to enroll in the Labor Insurance plan, the insured amount must not be lower than the highest salary grade declared by any employee within the company.

For companies with five or more employees, the employer is required to establish a Labor Insurance unit as per regulations. In such cases, employee enrollment is mandatory, and employers also have the option to enroll in the Labor Insurance plan under the company.

Note: if you have a full-time job elsewhere, you can be insured as an employee through that company.

The fee of Labor Insurance is shared between the employer and the employee. Please refer to the table below for more details on premium calculations and employer/employee contribution ratios:

Related tables please visit Bureau of Labor Insurance, Ministry of Labor for more resources.

National Health Insurance: Mandatory for Everyone

Unlike Labor Insurance, National Health Insurance (NHI) is mandatory for all Taiwanese citizens and foreign residents with an ARC, regardless of employment status. This program provides comprehensive healthcare coverage for individuals and their dependents.

Establishing an Insurance Unit:
As a company owner, you must establish an insurance unit and enroll in NHI in your company, unless you are employed and insured in the other company.
Minimum Insured Amount:
The minimum insured amount for NHI depends on the number of employees in your company:

Less than 5 employees	NTD 40,100 (effective January 1, 2025)
5 or more employees	NTD 45,800

Similar to Labor Insurance, National Health Insurance is shared between the employer and the employee. You can find detailed information regarding calculations and employer/employee contribution ratios on the NHI website.

Applicable to employers or self-employed:

https://www.nhi.gov.tw/ch/cp-13141-31697-2580-1.html

Applicable to employees working in public or private enterprises:

https://www.nhi.gov.tw/ch/cp-13138-6ab24-2576-1.html

Note: the information provided above is up-to-date as of December 2024. It is important to keep in mind that the amounts and standards for Labor Insurance and National Health Insurance premiums are subject to change every year. To obtain accurate information, it is recommended to always visit the official websites.

Additional Tips:

Consult with a CPA or accountant familiar with Taiwan's insurance system for tailored advice.
Start planning and researching insurance options well before starting your business.
Remember to comply with all regulations and deadlines for enrollment and premium payments.
Be aware of potential changes in insurance policies and adjust your plans accordingly.

By understanding these key points, expats can navigate the complexities of Labor and National Health Insurance in Taiwan and ensure they are adequately protected for their business venture.