Trade union coalition in Taiwan calls for pension rate hike

Trade union coalition in Taiwan calls for pension rate hike
Trade union coalition in Taiwan calls for pension rate hike

Employees under the current Labor Pension Act are calling for a higher increase in employer contributions to their pension funds.

The minimum requirement for contributions to employee pension accounts should be increased so that employees can withdraw with ease when the time comes.

This was the demand that a coalition of trade unions in Taiwan are demanding organizations do.

The current amount that is contributed to the pension accounts of employees every month is at least 6% of the employee’s salaries, and employees can choose to collect the resulting amount contributed as a lump sum or a monthly annuity at the age of 60.

It is time for a change, Chiang Chien-hsing, Head of the Taiwan Confederation of Trade Unions, told a rally outside government offices in Taipei. Chiang had learned from feedback with union members across Taiwan that the 6% rate was a concern, as many feared they could be poor during retirement.

Chung Fu-chi, Head of Taiwan Federation of Financial Unions, said that the current Labor Pension Act stipulated a 6% minimum contribution, but most employers refuse to raise it any higher. Any union petition demanding a legislative increase has been denied by the government, who argue that the matter should be settled through labor-management negotiations.

This, however, ignores the fact that employees have less bargaining power, Chung explained. I have recommended that the rate of contribution be raised to 12.5%, which would serve as a basis for labor-management negotiations.

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Chung called on the candidates in January’s presidential election to announce their support for increasing the contribution pension rate to gain support from employees.

The ministry said in a statement that a legislative change would require all parties to reach a consensus, reported Taipei Times. Until then, employers and employees could negotiate higher contribution rates in collective bargaining agreements, it said.

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