When I first started working in a factory in Taiwan, I never imagined I could one day retire here. I thought it was just a contract job. But in recent years, Taiwan has opened the doors wider for foreign workers like us—not just to work, but to stay for good.
Let’s break it down step by step: How a Filipino factory worker can retire in Taiwan, what kind of pension you can expect, and how to make the most of it.
Legal Path to Long-Term Residence and Retirement
Step 1: Join the Long-Term Retention Program
In April 2022, Taiwan started a program for “intermediate skilled” workers. If you’ve worked in manufacturing or factory jobs for 6 years or more, you can apply to change your worker status.
Why it matters:
- You can keep working with no limit on contract extensions
- You’re now on the path to retirement and permanent stay
Step 2: Apply for Permanent Residency
After 5 more years (total of 11 years in Taiwan), you can apply for permanent residency.
Benefits of PR:
- No more visa renewals
- Full access to Taiwan’s health system
- Easier to retire and stay for life
Taiwan’s Pension System for Factory Workers
There are two types of pension systems in Taiwan, depending on when you started work:
| Pension System | Who It’s For | How It Works |
| Old System | Hired before 2005 | Needs 15 years of work; monthly pension at age 60+ |
| New System | Hired after 2005 | Employer puts 6% of your salary into a personal retirement account |
If you’re part of the retention program, your pension type depends on when you first got hired. Either way, you’ll have retirement money waiting.
How Much Can You Earn and Get for Retirement?
Monthly Salary (2025)
- Base Pay: NTD 27,470 (~PHP 50,000)
- With Overtime: NTD 35,000–45,000 (~PHP 60,000–80,000)
How Pension Contributions Work
Your boss pays 6% of your salary into your pension account. You don’t need to do anything—it’s automatic.
Sample Pension Estimate
If you contribute for 15 years at an average salary of NTD 30,000/month, you may get:
- Monthly Pension: Around NTD 15,000–20,000 (~PHP 27,000–36,000)
Will That Be Enough to Live on?
Let’s look at monthly expenses in smaller cities like Taichung or Kaohsiung:
| Expense | Monthly Cost (NTD) | PHP Equivalent |
| Rent (Shared) | 4,000 – 6,000 | 7,300 – 11,000 |
| Utilities & Internet | 1,500 – 2,000 | 2,700 – 3,700 |
| Food & Daily Needs | 6,000 – 8,000 | 11,000 – 15,000 |
| Transport | 1,200 – 2,000 | 2,200 – 3,700 |
| Healthcare | 800 – 1,200 | 1,500 – 2,200 |
| Total | 13,500 – 19,200 | 25,700 – 35,600 |
A pension of NTD 15,000–20,000 can cover basic costs outside Taipei. But you’ll need savings too.
How to Make Retirement in Taiwan Happen: Practical Tips
Tip 1: Apply for Permanent Residency Early
Once you hit the 11-year mark, file for PR. You’ll get local healthcare and fewer requirements.
Tip 2: Save 10–20% of Your Pay
Put part of your income into a time deposit or a savings account every month.
Example: If you earn NTD 40,000, try saving NTD 4,000–8,000 monthly.
Tip 3: Live in Cheaper Cities
Cities like Taichung, Tainan, or Kaohsiung have lower rents but still offer good factory jobs.
Tip 4: Learn Basic Mandarin
Even basic Chinese can help you:
- Get promoted
- Understand job benefits
- Communicate during emergencies
Tip 5: Check Your Pension Account Every Year
Go to the Taiwan Ministry of Labor website and check if your contributions are correct.
Ask your HR for help if you’re unsure how.
Financial Strategies to Boost Your Pension
Raise Your Salary Base
- Ask for wage reviews or overtime
- More income = higher pension later
Example: Getting NTD 40,000 instead of NTD 30,000 adds thousands to your retirement.
Delay Retirement
- If you retire later than 60, you can get a bigger monthly pension
- Every year you delay = higher monthly payout
Add Voluntary Contributions
- Add extra money to your pension account if your budget allows
- Ask your company or a local bank how to top up
Pick the Right Withdrawal Method
| Method | Benefit | Watch Out |
| Lump Sum | Get it all at once | May be taxed if over a limit |
| Monthly | Steady income | Better for budgeting |
Tip: If you have no other income in retirement, you’ll likely pay low or no tax.
Frequently Asked Questions
Q: Is it hard to get permanent residency as a factory worker?
A: As long as you’ve worked in Taiwan for 11 years and are part of the intermediate skilled worker program, you can apply. The process is clear, and many OFWs have succeeded.
Q: Do I need to contribute to the pension myself?
A: No. Your employer automatically contributes 6% of your monthly salary. You can add more if you want, but it’s not required.
Q: Can I bring my family if I retire in Taiwan?
A: If you have permanent residency, you can apply for family reunification. But rules change, so always check with Taiwan’s immigration website.
Final Thoughts: Yes, You Can Retire Here—If You Plan Ahead
Retiring in Taiwan isn’t just a dream. If you:
- Work 11+ years under the right program
- Apply for PR
- Save a little each month
- Choose affordable cities
- Check your pension status yearly
…then yes, it’s possible to spend your senior years here—with peace of mind and enough to live simply.