VP clarifies labor insurance hike

Taipei Times
Date: Jan 21, 2017
By: Staff writer, with CNA

A draft proposal to reform the pension system seeks to incrementally increase the labor insurance

Vice President Chen Chien-jen, who heads the Presidential Office’s Pension Reform Committee, speaks at a news conference at the Presidential Office in Taipei yesterday held in response to media reports about a draft proposal to reform the pension system that was released on Thursday. Photo: Peter Lo, Taipei Times

premium from 9.5 percent to 18 percent over a 10-year period, rather than doing so in one step, Vice President Chen Chien-jen (陳建仁) said yesterday.

Chen was speaking at a news conference in Taipei held to respond to what Chen called misleading media reports about the proposal, which was released on Thursday.

Under the proposal, the labor insurance premium is to be raised by 0.5 percentage points every year starting next year, said Chen, who heads the Presidential Office’s Pension Reform Committee.

The government would then review the results in 2023 and if they are deemed unsatisfactory, the premium would be raised by 1 percentage point every year until it reaches 18 percent, he said.

There is no plan to change the existing system in which employees, the government and employers contribute 20 percent, 10 percent and 70 percent respectively to the premium, he said, dismissing as untrue a report that said employees and employers would each contribute 50 percent of the premium.    [FULL  STORY]

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