Taiwan labor groups demand higher mandatory employer pension contributions

On Tuesday, the May 1 Action Alliance—a coalition of labor unions and advocacy groups—held protests in front of Taiwan’s Executive Yuan and Legislative Yuan in Taipei, pressing the government to increase the statutory employer contribution to the new labor pension system. The alliance’s spokesperson, Chiu I-kan of the Confederation of Taipei Trade Unions, highlighted that the mandatory rate has remained at 6% since the system’s launch in 2005 and urged a floor of 12% to keep pace with rising living costs.

He reminded that President Lai Ching-te pledged to encourage higher contributions through tax incentives, yet no amendment bill has been presented. Yao Kuang-tsu of the Taiwan Workers' Struggle General Confederation cited a 6.04% average contribution in 2025 and said the government must act, as unions are already busy negotiating wages and bonuses. Lawmakers have introduced 17 amendment proposals, some seeking to raise the rate to 8-10%, but only the first reading has been completed, risking lapse before the legislative term ends in January 2028. The Ministry of Labor responded that it remains receptive to proposals, will evaluate options carefully, and has introduced ESG-linked incentives and award criteria to motivate higher contributions.