Taiwan has launched a labor insurance relief loan program to assist workers facing financial difficulties toward the end of the calendar year, under a scheme administered through the national labor insurance system. The initiative is being implemented by the Bureau of Labor Insurance (BLI) and is available to qualifying insured workers for a limited application period.
Under the program, workers who meet specific participation and compliance requirements may apply for loans of up to NT$100,000 (about US$3,200). The facility is targeted at labor insurance participants who have built up longer contribution records and are current on their obligations, Taiwan News reports.
To qualify, applicants must have paid labor insurance contributions for at least 15 years and must not have any unpaid premiums or outstanding late payment fees. In addition, workers who already hold unpaid balances under earlier labor insurance relief loans are not eligible. The program also excludes individuals who are currently receiving old-age benefits, disability benefits, or labor insurance compensation from relevant agencies. Applications are open until Jan. 2 and may be filed online, in person at designated service locations, or by mail.
According to the BLI, the loans carry a three-year term with an annual interest rate of 2.165%. For the first six months, borrowers are required to pay interest only, with no repayment of principal. From the seventh month onward, repayment shifts to equal monthly instalments that cover both principal and interest for the remainder of the term.
Land Bank of Taiwan has been engaged by the BLI to handle the program’s loan processing. The bureau has reminded borrowers that overdue repayments may be offset against labor insurance benefits in the event of a covered claim, which could reduce the payouts workers receive under the system.
Early this year, Taiwan’s Ministry of Labor (MOL) has confirmed an increase in the labor insurance premium rate to 12.5% starting in January 2025, up from the previous rate of 12%. The adjustment is part of a statutory mechanism introduced alongside labor pension reforms in 2009. Article 13 of the Labor Insurance Act set out a progression under which premium rates would rise from 7.5% to 8% within the first three years of the revised framework, then increase by 0.5 percentage points annually until reaching 10%. After that, the law mandates biennial increases until the rate reaches a ceiling of 13%. The most recent change occurred in 2023, when the rate moved from 11.5% to 12%.
Labor insurance premiums are shared between employers, employees, and the government on a 7:2:1 basis. For a worker with a monthly insured salary of NT$28,590, the 12.5% rate implies an employer contribution of NT$2,502, an employee share of NT$715, and a government contribution of NT$358. The MOL has estimated that the 2025 rate increase will generate about NT$20 billion (US$609.28 million) in additional annual premium income, which it said will add to the reserves of the labor insurance fund.
