Effective April 1, the premium rate for the national pension system will be increased from 6.5 percent to 7 percent, the Ministry of the Interior announced Feb. 9.
According to MOI Deputy Minister Tseng Chung-ming, the rate hike will increase insurees’ monthly payments by between NT$26 (US$0.89) and NT$52 based on the nation’s minimum wage.
The adjustment is in line with the rules stipulated by the National Pension Act, the official pointed out, adding that the change is critical to the sustainable development of the country’ s social welfare system.
According to Tseng, the program was launched in October 2008 as part of the government’s efforts in providing greater social security to the country’s citizens not covered by state-run insurance programs for laborers, farmers and public servants.
About 3.9 million qualified individuals aged between 25 and 65 are covered by the scheme, with around 203,000 insurees already receiving benefits, he said.
Under the scheme, the government subsidizes at least 40 percent of the premium payments. The latest adjustment is expected into inject NT$4 billion to the National Pension Fund per year.
The MOI stressed that the disadvantaged will not be affected by the policy change, as increased subsidies will become available to mentally and physically disabled individuals as well as those who earn below a certain level of income.
Around 55,000 low-income households will become exempt from premium payments after amendments to the Public Assistance Act take effect this July, the ministry added. (HZW)
Write to Meg Chang at meg.chang@mail.gio.gov.tw