The social insurance system involves a flat-rate benefit for citizens under the national pension program and earnings-related benefits under the labour insurance program. However, the system is limited and most people rely heavily on family support for their welfare.
A comprehensive national health insurance scheme was introduced in 1995. It seeks to provide medical coverage for all citizens, employed or not. Employees contribute 1.3% of their earnings and employers 4.6% of their payroll to the scheme. This will eventually rise to 7.2% by 2030. Disabled and low-income people pay no contributions, depending on the degree of disability or total family income.
The Labour Insurance Program provides retirement, disability and survivors' pensions in the form of a lump sum. On January 1, 2009, workers covered under the Labour Insurance Program were able to choose between the existing lump-sum payment or the new monthly annuity. Those covered after January 1, 2009, will only be eligible for the new program.
Most foreign nationals do not qualify for social insurance payments in Taiwan. It is possible to qualify for health benefits depending on your company.
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