In Taiwan, both local and foreign workers are required to have insurance. This way, in cases of medical emergencies, accidents, or even sudden layoffs due to company closures, both the employer and employees could access financial support at a time when they need it the most.
Indeed, the labor insurance system in Taiwan plays an important role in providing financial protection and support for local as well as foreign workers. In this article, we will talk about the different types of insurance that are available for foreign workers in the country.
Types of Insurance for Foreign Workers in Taiwan
Foreign workers in Taiwan are required to have three types of insurance: Labor Insurance, National Health Insurance, and Occupational Accident Insurance. Let’s take a closer look at each type:
Labor Insurance
Companies that have five (5) or more employees are required to provide labor insurance, which is mandatory for foreign workers up to 65 years of age. This type of insurance offers benefits and assistance in the following cases: maternity, injury or illness (non-occupational), disability, or death (survivor benefits).
Meanwhile, for employees who have worked for 15 consecutive years, labor insurance also includes retirement or pension benefit. By the time they are 60 to 65 years old, they can apply for a one-time pension payment before going back to their home country.
The premium for labor insurance is shared among employers, workers, and the Taiwan government. The amount is based on the worker’s salary, though generally it is the employer who pays the biggest contribution.
NOTE: For “live in” caregivers or caretakers in private homes, they can be enrolled voluntarily in the labor insurance system by their employers.
Health Insurance
Within three days of foreign workers’ receipt of their Alien Residence Certificate (ARC), they must be enrolled by their employers into the National Health Insurance (NHI) system of Taiwan.
The NHI system covers all residents, including foreign workers. It offers extensive healthcare coverage, including: dental care, outpatient and inpatient medical services, medical screenings, vaccinations, prescribed medicines, health education, and even traditional Chinese medicine.
Like labor insurance, premiums for health insurance are paid by employers, workers, and the government. This system helps to ensure that workers will receive quality healthcare whenever they need it.
Occupational Accident Insurance
Occupational Accident Insurance provides benefits and assistance in cases of a workplace injury, occupational illness, temporary disability, permanent disability, or death (survivor benefits). This type of insurance is separate from general labor insurance, and the premium is paid solely by the employer. Workers are not required to pay for this insurance.
Thanks to the country’s labor insurance systems, foreign workers can rest assured that they will receive assistance and benefits in cases of medical emergencies, accidents, workplace injuries, and economic downturns. If you have any questions or concerns about insurance, you can contact the 1955 Hotline for Migrant Workers for more information.
Among the different types of insurance mentioned above, health insurance is crucial and helpful to many foreign workers. Visit this guide to learn more about the NHI and how you can use it as a migrant worker Taiwan.