Here are some basic facts about the Labor Pension System in Taiwan. This is not financial advice in any way, shape or form. Instead, these are some of the basic facts that I have learnt over the years of living in Taiwan and dealing with the system.

Fact 1: ALL APRC and JFRC holders are eligible for the pension system (unless you work at a private school -not including buxibans)

I know this may sound outright discriminatory… but there is a very dirty little loophole in the private schools act that allows private schools to avoid paying the pension to foreign teachers.

Fact 2: Employers MUST contribute 6% (IN ADDITION TO YOUR SALARY) but you may also contribute an additional 6% (out of your pre-tax earnings)

But remember, Employers mustn’t deduct their contribution from your salary. My old school was doing that and after repeated attempts at talking to them I finally took them to the Labor Insurance Bureau.

Fact 3: The returns are GUARANTEED by the Taiwan government. – If there is a market crash the Taiwan government will prop up the account with the difference with a minimum of the rate of 2 years fixed term deposit rate of a local bank.

(If the market goes up 10% so does your pension balance. If it goes down 40%…. your pension balance still increases!!!!)

Fact 4: You can claim the pension while in your home country.

It is becoming easier and easier to claim it. What was once a trip to Taiwan and having it be nearly impossible for beneficiaries to claim is now just a simple form that you can submit to the local Taiwan office in your home country.

Fact 5: Your employer is probably not paying!

Take your work contract to the local Labor Insurance Bureau (not the Department of Labor) along with your passport and ARC/APRC to see if you are eligible and IF your employer is paying.

You will also get to see the current balance of your Labor Pension account.

If your employer is in fact not paying… It is best to ask them about it and come to a solution together, BEFORE escalating it with the Labor Insurance Bureau. There are big fines levied against employers who flout the system, and many employers simply don’t know (or choose to not know) about the pension system.

And that’s it! There are 5 main facts about the Labor Pension System in Taiwan for foreigners.

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