Labor Standards Law (LSL)

The LSA was promulgated in 1984 and has been amended many times. The LSA establishes the minimum requirements for the terms and conditions of employment that must be provided by an employer. The LSA applies to all types of employment relationships, unless the application of the LSA would create a genuine hardship for a business or the category of employment is specifically regulated. The BMAA, which protects employee rights after a merger and acquisition, supplements the LSA.

Act of Gender Equality in Employment (GEEA)

The Act of Gender Equality in Employment (GEEA) has been in effect since March 8, 2002 and was amended in January 2008, November 2008, January 2011, December 2013, February 2014, June 2014, December 2014, and May 2016. This law incorporates anti-sexual-discrimination regulations and other working conditions The GEEL prohibits sexual harassment in the workplace, contains measures to ensure gender equality in employment, and establishes requirements that employers must meet to create a beneficial environment for workers and their next generations.

The GEEA prohibits any unequal treatment in any aspect of employment, i.e. recruitment, screening, hiring, placement, assignment, evaluation, promotion, education, training, welfare, pay, retirement, discharge, severance, termination, etc., related to gender or sexual orientation. Further, an employer cannot terminate an employment at will if an employee marries or becomes pregnant, or requests leave for childbirth or childcare reasons.

The GEEA also includes measures on menstruation, maternity/post-childbirth, and paternity leave, family care, non-pay parental leave and its expiration, infant nursing time, etc. Employers hiring more than 100 employees must set up child care facilities or provide suitable child care measures, the cost of which will be subsidized by the competent authorities based on applicable regulations.

Prevention of sexual harassment is another key measure in the law. Companies are required to establish and display their prevention, correction and punishment rules. As the employer bears joint liability for a sexual harassment case, prevention and education should be taken seriously.

Particularly important is the employer's obligation to justify its non-discriminating position should an employee make claims of being discriminated or unfairly treated because of gender. Apart from fostering a non-discriminatory work environment, companies should also eliminate all sensitive wordings in documents that could potentially be interpreted as sexually discriminatory. Some local authorities have formally required companies to amend and re-file work rules to incorporate requirements under the Gender Equality in Employment Law. It is recommended that companies thoroughly review and if necessary amend their policies in accordance with GEEA to minimize any potential risks.

National Health Insurance Act (NHIA)

The National Health Insurance (NHI) program in Taiwan went into effect on March 1, 1995. The insurer of NHI is the Bureau of National Health Insurance, the Ministry of Health and Welfare (MOHW), which administers the insurance plan. The NHI requires mandatory participation of all companies, and all local and foreign nationals. The program is designed to provide comprehensive health coverage for all residents. As such, foreigners legally employed in Taiwan join the insurance plan on their date of employment.

NHI Coverage

Under NHI, medical care benefits are provided for illness, injury and maternity in respect of hospitalization and outpatient care, as well as dental care and traditional Chinese medical care. In cases of major illnesses and injuries, child delivery, or receiving medical care in mountain regions and outlying islands, the insured person is exempted from payment, no matter if the payment is for hospitalization or outpatient expenses.

The NHI covers all employed people, including foreigners with an Alien Resident Certificate. The insured is classified into the following six categories:

Foreign nationals that have an ARC and have established a registered domicile in Taiwan for at least six months must enroll in the NHI. For those with a regular employer, enrollment in the NHI is compulsory.

Category 1:

• Civil servants or full-time and regularly paid personnel in governmental agencies and public/private schools
• Employees of publicly or privately owned enterprises or institutions
• Employees other than the insured prescribed in the preceding two subparagraphs but who are otherwise employed by particular employers
• Employers or self-employed owners of business
• Independently practicing professionals and technicians

Category 2:

• Members of an occupational union who have no particular employer, or who are self-employed
• Seamen serving on foreign vessels, who are members of the National Seamen's Union or the Master Mariners' Association

Category 3:

• Members of the Farmers Association or the Irrigation Association, or workers aged over fifteen who are actually engaged in agricultural activities
• Class A members of the Fishers Association who are either self-employed or have no particular employers, or workers aged over fifteen who are actually engaged in fishery activities

Category 4:

• Household representatives of the dependents of voluntary military officers, non-commissioned officers or servicemen, who are holders of Military Dependents Supply Certificates or Military Dependents Identifications
• Officers performing their substitute military service
• Those who are serving sentences in correctional institutions or receiving punishments from police and military court-martial. However, this is not applicable to those who are serving sentences of less than two months or are under parole.

Category 5:

Members of a household of low-income families as defined by the Social Support Law

Category 6:

• Veterans, household representatives of survivors of veterans
• Representatives or heads of household other than the insured or their dependents prescribed in subparagraphs 1 to 5 and the preceding item of this subparagraph

The dependents of the insured in Categories 1 to 3 and 6 shall subscribe to or withdraw from NHI together with the insured, as prescribed below:

• The unemployed spouse of the insured
• The unemployed members of the higher ranks of the direct line of descent
• Direct relatives in the first and second level in the direct line of descent who, if not 20 years old, are unemployed; and direct relatives in the first and second level in the direct line of descent who are at least 20 years old and who are unable to make a living or are still at school and unemployed

ROC nationals who were previously enrolled in NHI or employees who maintain a registered household in the Taiwan area for more than 4 months must enroll in the program without delay. The statement above also applies to Category 1 employees who already have a registered household in Taiwan.

Foreign nationals staying in Taiwan for more than 4 months and in possession of an alien residence certificate, or foreign nationals staying with relatives who qualify as an insured person, must enroll in the NHI. For Category 1 foreign employees, the enrollment of NHI is compulsory.

NHI Medical Service Institutes

NHI medical service institutes include:

• Contracted hospital and clinics
• Contracted drug stores
• Other contracted medical service institutes designated by the regulating authorities
• Insurer-appointed medical laboratory institutes

NHI Premium Rate

The NHI premium rate is 4.69% of the employee's insured salary. The schedule of insured salary consists of 49 levels, where the lowest and highest are NTD 22,000 and NTD 182,000, respectively. Premiums are not assessed on any portion of a monthly wage that exceeds the maximum figure.

Second Generation National Health Insurance

A second generation NHI became effective on January 1, 2013. According to the NHI, Categories 1 to 4 and 6 insured persons with the following types of earnings (or income) must pay a supplementary premium(current rate is 1.91%), which will be deducted by the premium withholder upon payment and paid over to the insurer before the end of the month following the payment. However, the supplementary premium(current rate is 1.91%) does not apply to the portion of the single benefit payment that exceeds NTD 10 million or payments not reaching a certain amount:

• Accumulated annual bonus given by a group insurance applicant in excess of four times the monthly premium ratable wages.
• Salary earnings outside of those of the group insurance applicant (with the exception of salary earnings of Category 2 individuals).
• Income from a professional practice (however, income from a professional practice designated as an insured payroll-related amount is not included in the calculation of premium ratable wages);
• Dividends (but not premiums already included in premium ratable wages);
• Interest and rental income.

Furthermore, when the total amount of salary paid exceeds the insured payroll-related amount for that month, the group insurance applicant of items 1 to 3 of Category 1 must pay the supplementary premium(current rate is 1.91%), which is calculated based on the difference as well as the rate and paid jointly per month in accordance with payment structure in Article 27.

Labor Insurance (LI)

LI provides the statutory basis for compulsory coverage of social security for a large part of the workforce in Taiwan.

LI provides cash benefits for retirement, illness, unemployment, disability, maternity and death, to cover ordinary risks as well as occupational risks (including work injuries and occupational diseases). LI provides coverage to employees and workers in the 15-65 age group employed in public or private factories, mines, ranches, forestry firms, tea plantations, communications and transportation enterprises, public utilities and journalistic, cultural, non-profit or cooperative organizations with 5 or more workers.

LI also provides coverage to employees of government agencies or public and private schools who have not been covered by public insurance. Skilled trainees of government-registered vocational training organizations, full-time fishery workers, and workers belonging to trade associations without permanent employers, including the self-employed are also covered by LI. Moreover, foreign employees and workers in any of the categories mentioned above are also covered by LI. Once an establishment provides LI to its employees, the coverage cannot be withdrawn even if the number of employees/workers falls below five in the future.

LI Premium Rate

The LI premium is calculated as a percentage of the member's insured salary up to a current monthly maximum of NT$45,800 (the minimum monthly insured salary is NT$22,000). As from January 1, 2017, the premium rate of LI is 9.5% (not including the 1% EI premium) of insured salary, which is split among the employer (70%), the employee (20%), and the government (10%).

The employer also is required to pay a premium for occupational hazard benefits, ranging from 0.09% to 1.06% of the insured salary (including the Business Category Accident Premium, ranging from 0.03% to 1.00% and a fixed rate of 0.06% for an on- and off-duty accident premium), depending on the occupational risk of the industry.

Employment Insurance (EI)

Employees that are above the age of 15 and below 65 are to be deemed as collective insured people under the establishments they work for or belong to, unless otherwise excluded by the establishments under the provision of Article 5, Paragraph 2 of Employment Insurance Act. The insured people should be: 1. holders of ROC citizenship; 2. employed foreigners or residents from Mainland China, Hong Kong or Macau that have married a ROC citizen who has a domicile registered in ROC's territory. Employment Insurance Act covers unemployment benefits, early re-employment allowance, vocational training living allowance, special allowance for unpaid parental leaves, and National Health Insurance premium subsidies for unemployed insured persons and dependants enrolled with the insured person. Employment insurance premium is 1% of the insured salary, of which the employer, the employee and the government shoulder 70%, 20% and 10% respectively.

Other Labor Regulations

Minimum Wage

The government adjusted the minimum wage, which became effective January 1, 2018, to better reflect Taiwan's general economic growth as well as increases in the average consumer price index while also enhancing the living standard and purchasing power of laborers, For full-time workers, the monthly minimum salary was adjusted from NT$21,009 to NT$22,000 and the minimum hourly wage has been increased to NT$140 for part-time workers from January 1, 2018.

Working Hours

Normal Working Hours

• Employees shall have regular working time not in excess of 8 hours per day or 40 hours a week.
• With the consent of the relevant labor union, or if no labor union exists for a business entity, with the approval of the related labor-management conference participants, an employer may distribute the regular working hours as referred to in the preceding paragraph, of any 2 workdays within any 2-week period, to other workdays, provided that no more than 2 hours shall be distributed to each of the other workdays. The total number of working hours, however, shall not exceed 48 hours per week.
• With the consent of the relevant labor union, or if no labor union exists for a business entity, with the approval of the related labor-management conference participants, an employer may distribute the regular working hours as referred to in the first paragraph within an eight-week period provided that the regular working time does not exceed eight hours in a given day and the total number of working hours does not exceed 48 hours in a given week. The first and second paragraphs above apply only to lines of business designated by the central competent authority.

Overtime

• When an employer requires that employees perform work in addition to regular working hours, the employer, with the consent of the relevant labor union, or if no labor union exists for a business entity, with the approval of the related labor-management conference participants, may extend the working hours.
• The extension of working hours referred to in the preceding paragraph, combined with the regular working hours, shall not exceed 12 hours in a given day and total overtime may not exceed 46 hours in a month. The employer must pay for the employee's overtime work. If the employee wishes to take leave as compensation for overtime, this must be agreed with the employer. In the event of an Act of Nature, an accident, or an unexpected matter, whereupon an employer requires employees to perform work in addition to regular working hours, the employer may extend working hours. However, the employer shall notify the labor union within 24 hours of the beginning of such an extension. If no labor union exists, the employer shall submit a report to the local competent authority. Subsequent to the overtime work, the employer shall offer employees suitable time off.

Leave

• Public Holidays
  • An employee shall be granted time off on all holidays, Labor Day, and other days as prescribed by the central competent authority. (LSL Article 37)
  • The 19 LSL holidays are as follows:

    Name of the Holiday	Date of Holiday
    Foundation Day of the Republic of China	January 1
    Lunar New Year's Eve	The last day of the lunar calendar, which generally falls between mid-January and mid-February
    Lunar New Year	The first 3 days of the lunar calendar
    Peace Memorial Day	February 28
    Children's Day	The day prior to Tomb Sweeping Day, which normally falls on April 4
    Tomb Sweeping Day	Ching Ming Festival, April 5
    Labor Day	May 1
    Dragon-Boat Festival	5th day of the 5th month of the lunar calendar, which generally falls between late May and early June
    Mid-Autumn Festival	15th day of the 8th month of the lunar calendar, which generally falls between mid-September and early October
    National Day	October 10

  
  
  • Regarding arrangements for public holidays, except for the regulations set forth in the Labor Standard Law, companies may also follow the holiday schedule as announced by Directorate-General of Personnel Administration, Executive Yuan ("DGPA") under the Executive Yuan.
  • The CPA holiday schedule follows different national holiday regulations than those in the Labor Standards Law. Under the CPA holiday schedule, some holidays are not taken, e.g. "Revolutionary Martyrs' Memorial Day", "Women's and Children's Day", "Labor Day", "Confucius' Birthday (Teachers' Day)", "Taiwan Restoration Day", "Chiang Kai-Shek's Birthday", "Dr. Sun Yat-Sen's Birthday", and "Constitution Day". However, certain activities may be organized on the aforementioned holidays without a day-off, but in memory of those days.
  • In addition to the "all-Saturday-off" policy, companies adopting the CPA holiday schedule still have to adjust working hours in order to comply with the Labor Standards Law.
• Annual Leave (LSL Article 38)
  • An employee who continues to work for the same employer or business entity for a certain period of time shall be granted special leave on an annual basis according to the following timetable:

    Years of Service	Annual Paid Vacation (No. of days)
    More than 6 months but less than 1	3
    More than 1 but less than 2	7
    More than 2 but less than 3	10
    More than 3 but less than 5	14
    More than 5 but less than 10	15
    More than 10	1 additional day for each year of service over 10 years up to a maximum of 30 days

  • Unused annual leave not taken due to business reasons will be paid for at year-end; however, it will be forfeited if not taken due to personal reasons.
• Sick Leave (Article 4, Regulations on Worker Leave-Taking)
  • First 30 days of sick leave: half pay.
  • Sick leave exceeding 30 days: no pay.
  • Non-hospitalized sick leave shall not exceed 30 days in 1 year.
  • Hospitalized sick leave shall not exceed 1 year within a period of 2 years.
  • Total sick leave - non-hospitalized and hospitalized leaves combined - shall not exceed 1 year within a period of 2 years.
• Tocolysis Leave (Article 4, Regulations on Worker Leave-Taking and Gender Equality in Employment Law Article 15)
• When a pregnant employee is instructed by a physician to go on bedrest, that period will be included in employee's hospital leave.
• Menstruation Leave (for female employees only) (Gender Equality in Employment Law Article 14)
  • Stipulates one day per month and shall be incorporated into sick leave entitlement. If the cumulative menstrual leaves do not exceed three days in a year, said leaves shall not be counted toward days off for sick leave. All additional menstrual leaves shall be counted toward days off for sick leave.
• Maternity Leave (for female employees only) (Article 50 of the LSL and Article 15 of the Gender Equality in Employment Law)
  • A female employee shall be granted maternity leave before and after childbirth for a combined period of 56 calendar days at full pay; if her service has been less than 6 months, however, she shall be paid at half her regular pay rate.
• Miscarriage Leave (for female employees only) (Gender Equality in Employment Law Article 15)
  • A female employee who experiences a miscarriage after being pregnant for more than three months will be granted miscarriage leave for 28 calendar days at full pay; if her service has been less than 6 months, however, she shall be paid at half her regular rate.
  • A female employee who experiences a miscarriage after being pregnant for 2 to 3 months will be granted miscarriage leave for 7 calendar days without pay.
  • A female employee who experiences a miscarriage after being pregnant for less than 2 months will be granted miscarriage leave for 5 calendar days without pay.
• Paternity Leave (Article 15 of Gender Equality in Employment Law)
  • Five calendar days will be granted at full pay.
• Personal Leave (Article 7 of Regulations on Worker Leave-Taking)
  • Stipulates 14 working days a year without pay.
• Family Care Leave (Gender Equality in Employment Law Article 20)
  • Companies are required to provide family care leave without pay to their employees. It should not exceed 7 working days a year for the purpose of taking care of a family member who needs to get a vaccination or suffers from a serious illness or because of other major events. Family care leave shall be incorporated into personal leave entitlement.
• Marriage Leave (Article 2 of Regulations on Worker Leave-Taking)
  • Stipulates 8 working days at full pay.
• Bereavement Leave (Article 3 of Regulations on Worker Leave-Taking)

  Type of Relatives	No. of Days at Full Pay
  Spouse	8 working days
  Parent	8 working days
  Grandparent	6 working days
  Parent-in-law	6 working days
  Child	6 working days
  Sibling	3 working days
  Grandparent-in-law	3 working days

• Parental Leave (Article 16 of Gender Equality in Employment Law)
  • Companies are required to provide unpaid parental leave to employees who have worked with the company for six months and have children under age three. This leave can be continued until the child reaches age three, but may not exceed a total of two years. When employees are raising over two children at the same time, the period of their parental leave shall be computed aggregately and the maximum period shall be limited to two years received by the youngest child. During the period of parental leave without pay, employees may continue to participate in their original social insurance program. Premiums originally paid by the employers shall be exempted and premiums originally borne by the employees shall be deferred for three years. Employers are not obliged to pay wages to employees during the period of unpaid parental leave. However, according to the EIA, employees can apply for the allowance for parental leave.

Retirement Benefits

LI old-age benefits, LSL retirement benefits and LPA retirement benefits

Depending on the retirement plan selected by an employee, he or she may receive retirement benefits from the LSL and/or LPA retirement plan, as well as old age benefits provided by LI upon retirement. LI old age benefits are managed independently from LSL or LPA retirement plans. As such, upon meeting eligibility and fulfilling application requirements, an employee is entitled to claim old age benefits upon retirement.

LI Old Age Benefits

Eligibility and Retirement Age:

• Old-Age Pension Benefit: an insured employee may claim for retirement payment according to one of the following regulations:
  • An insured person whose insurance coverage year reached over fifteen and is at least sixty years of age and resigns.
  • An insured person who has been employed in physical hard labor, work of special character and whose insurance coverage year reached over fifteen and is at least fifty-five years of age and resigns.
• Lump Sum Old-age Benefit: An insured person whose insurance coverage year has not reached fifteen, ut is at least sixty years of age and resigns.
• Onetime Payment of Old-Age Benefit: an insured person who already has insurance coverage years before the implementation of Labor Insurance Act on January 17, 2009 meets one of each regulations may claim for lump sum payment:
  • When an insured male employee reaches age 60, or a female employee reaches age 55, provided the employee has accumulated at least one year of LI membership;
  • When an insured person with at least 15 years of LI membership reaches age 55;
  • When an insured employee with at least 25 years of LI membership reaches age 50;
  • When an insured person has been in the LI program for 25 consecutive years under the same insured unit;
  • When an insured person working for more than 5 years in certified dangerous conditions requiring physical labor reaches age 55;
  • When an insured person who is transferred to the Armed Forces Insurance, the Government Employees' Insurance, or the Insurance for Teaching and Administrative staff of Private Schools is qualify to retain his/her seniority according to Article 76 of Labor Insurance Act.

Standards of Benefit

• The better result will be chosen:
  • Average monthly insured salary × coverage years × 0.775% + NT$3,000.
  • Average monthly insured salary × coverage years × 1.55%.
• Old-Age Lump Sum Benefits
  • An insured person who claims a lump sum old-age benefits payment shall receive one-month's old-age benefits for each one of his/her insurance coverage years computed on the basis of his/her average monthly insurance salary. Five years at most would be counted for the insurance coverage after 60 years of age.
• One Time Old-Age Benefits
  • For each full year of insurance coverage, one month of average monthly insured salary would be issued; should the total insurance coverage be more than 15 years, for the part which is more than 15 years, 2 months of average monthly insured salary would be issued for each extra year of insurance coverage with the maximum of 45 months. Five years at most would be counted for the insurance coverage after 60 years of age. The maximum benefit payment amount shall not exceed 50 month's insurance salaries including the old-age benefits receivable before he/she attained 60 years of age.

Labor Pension Act- New Labor Pension System

Labor Pension Act put into practice on July 1, 2005. As for the receiving and payment of labor pensions contained in the new labor pension system, their safekeeping, the additional payment for arrear, the payment of administrative fines and their executive compulsion will be delegated and handled by the Bureau of Labor Insurance. Individual and special accounts will play a major role and are supplemented by annuity insurance programs under the new Act. Please see the following explanation respectively:

Individual Labor Pension Account

• Under the new Act, all employers(Native workers, the foreign spouses and mainland (including Hong Kong, Macao)) are required to deposit 6% (or more) of a worker's monthly wages into an individual labor pension account managed by the Bureau of Labor Insurance, with ownership going to the worker. Workers adopting the new pension system may begin accumulating their pension accounts as their employers contribute to them. The accounts are portable and will be retained even if workers switch jobs or if business entities shut down or cease operations. Under the new system, in addition to the mandatory employers' contribution, workers may contribute voluntarily additional sums, maximum 6% of their monthly wages to their pension accounts. For those who contribute beyond the required amount, the extra contributions may be tax deducted from their total annual income. Under the new scheme, a worker may begin collecting his or her pension payments upon reaching the age of 60, regardless of employment status. Workers with 15 years or more work seniority can choose to receive monthly pension payments or lump sum payments. Workers with less than 15 years of seniority can only receive lump sum payments. A worker is not only entitled to monthly pension contributions from his/her employer but can also concurrently receive severance payments. Survivors or designated beneficiaries are entitled to claim the pension payment of a deceased worker. For those under 60 who have lost the capacity to work, may request for early pension payment.

Annuity Insurance

• A business entity with over 200 workers may, with the consent of labor union or with the approval of labor-management conference when no labor union exists, insure with the Annuities Insurance pursuant to the Insurance Act for workers who choose in writing to insure with the Annuities Insurance.

Severance Payment

Labor Standards Law

Under the LSL, the termination of an employment contract requires a notice period of 10 days to employees who have been working for more than 3 months but less than 1 year; 20 days' notice is required for employees with at least 1 but less than 3 years of service; and 30 days' notice is required for those with more than 3 years of service. After termination notice is given to an employee, 2 paid days off from work are granted during each week of the notice period so that the employee may search for a new job. Employers under the LSL must provide severance pay of 1 month's salary for each year of service.

An employer may terminate a labor contract with advance notice if any one of the following five conditions exists:

• Where the employer's business is suspended or its ownership is transferred to others.
• Where there is an operating loss or a business contraction.
• Where force majeure necessitates business suspension for more than 1 month.
• Where a reduction in force is caused by the changing of the nature of a business and terminated employees cannot be reassigned to other positions.
• Where an employee is confirmed to be incompetent in the performance of his or her job duties.

An employer may dismiss an employee without advance notice if any one of following six conditions exists:

• Where material misrepresentations by the employee at the time of hiring causes the employer to sustain damage.
• Where violence or gross insults are perpetrated by the employee against the employer, his or her family members or agents, or fellow workers.
• Where the employee has been imprisoned.
• Where the employee has committed gross breach of the labor contract or work rules.
• Where the employee has deliberately ruined property of the employer or deliberately disclosed technological or confidential business information of the employer, resulting in damage.
• Where the employee is absent without cause for 3 consecutive days or 6 days in 1 month.

For the first, second, fourth, fifth, or sixth conditions, the employer must terminate the employee within 30 days after the employer becomes aware that such circumstances exist.

Labor Pension Act

For employees who are subject to the pension mechanism under the Labor Pension Act (LPA), severance pay is calculated at half the average monthly wage for each year of service following enforcement of the LPA. The severance pay for a period of service of less than one year shall be pro-rated. Total severance pay shall not exceed six months of the average monthly wage.

Severance pay calculated under either the LSL or the LPA shall be paid within 30 days after the termination of the labor contract.

Registration of Work Rules (LSL Article 70)

An employer hiring more than 30 employees shall establish work rules in accordance with the nature of the business, and shall publicly display the work rules after they have been submitted to the competent authority for approval and registration. The rules shall specify the following items:

• Work hours, leave policy, leave of absence, national holidays, and methods for arranging shifts for continuous work
• Salary standards, methods of calculation, and pay days
• Overtime work
• Allowances and provision for bonuses
• Disciplinary policies
• Rules for leave-taking, rewards and demerits, promotion and transfer
• Recruitment, discharge, redundancy, withdrawal of service and retirement
• Compensation and pension for injury or illness caused by occupational accidents
• Welfare measures
• Safety and health regulations which employers and employees are obliged to observe
• Methods to enhance communication and cooperation between employer and employees
• Others

Employee Welfare (Employees' Welfare Funds Act)

The Employees' Welfare Funds Act requires every employer with more than 50 employees to provide funds for the establishment of an Employee Welfare Committee. The custody and usage of the employees' welfare funds shall be handled by the employees' welfare committees jointly set up by both the labor and management representatives. Representatives from labor shall not be less than two-thirds.

The following are the sources of funds to support the Welfare Committee's activities:

• 1-5% of the company's paid-in capital
• 0.05-0.15% of the company's business revenue
• 0.5% deduction from each employee's monthly wages
• 20-40% of the proceeds from the company's sale of waste or scrap materials

Allocations from the fund may be made for the following Welfare Committee activities covered by the Act.

The application, coverage and subsidy proportion of the Employee Welfare Fund is stipulated as follows: No limitation on each subsidy category is set. However, the total subsidies of the year should not exceed the annual revenue. Cash subsidies should be given in an equitable way and the amount should not exceed 40% of the annual revenue.

• Benefit subsidies (wedding, funeral, childbirth, emergency subsidy, emergency loan, accident subsidy, etc.)
• Education subsidies (scholarship for employees or their children, etc.)
• Leisure activity subsidies (outing, birthday parties, movie tickets, clubs, etc.)
• Other subsidies (festival grant, group insurance, interest subsidy for employees' housing loans, interest subsidy for home-purchase savings, subsidy for child care or dependents' care, retirement subsidy, etc.)

For more information, please visit Ministry of Labor, Bureau of Labor Insurance and National Health Insurance Administration.