Taiwan Labor Pension Calculator 2026
Calculate Taiwan 2026 Labor Pension Act (LPA) 6% employer + 6% voluntary employee, Labor Insurance 10.5% split 70/20/10 (employer/employee/government), and National Health Insurance 5.17% split. Enter monthly TWD salary to see all employee and employer contributions.
| Labor Pension Act (LPA) | |
| Employer 6% (mandatory) | — |
| Employee voluntary contribution | — |
| Labor Insurance (10.5%) | |
| Employer 70% | — |
| Employee 20% | — |
| Government 10% | — |
| National Health Insurance (5.17%) | |
| Employer 60% | — |
| Employee 30% | — |
| Government 10% | — |
| Employee total deductions | — |
| Employer total cost | — |
Taiwan's social insurance system has three mandatory pillars for employees: Labor Pension Act (LPA), Labor Insurance (LI), and National Health Insurance (NHI). Each uses an official insured-salary bracket table, capped near TWD 45,800 for LI and TWD 219,500 for NHI. This calculator applies 2026 rates published by the Bureau of Labor Insurance and the National Health Insurance Administration.
Labor Pension Act — 6% Employer + Voluntary 6% Employee
Under the LPA (2005 New System), every employer must contribute at least 6% of monthly insured salary to the employee's individual pension account at the Bureau of Labor Funds. Employees may also voluntarily contribute up to 6% more, which is fully tax-deductible from current-year personal income. The pension vests immediately and follows the worker across employers — it is a defined-contribution scheme, not a defined-benefit pension.
Labor Insurance — 10.5% Split 70/20/10
Labor Insurance funds old-age, disability, survivor, maternity, injury, and unemployment benefits. The 2026 ordinary insurance premium rate is 10.5% of insured salary (subject to the official LI salary table, currently capped at TWD 45,800/month). The split is: employer 70%, employee 20%, central government 10%. An additional 1% employment insurance premium is bundled (0.7% employer / 0.2% employee / 0.1% government) and included in this calculator's LI total.
National Health Insurance — 5.17% Split 60/30/10
NHI covers nearly all medical care in Taiwan. The 2026 general premium rate is 5.17% of insured salary (cap TWD 219,500/month). The standard employee split is 30% employee, 60% employer, 10% government. Dependents (spouse, children, parents) are billed at the same rate up to a maximum of three billable dependents per insured worker. A separate supplementary NHI premium of 2.11% applies to bonuses, rental income, and dividends above thresholds — not included in regular payroll.
Common Mistakes Employers Make
(1) Using actual salary instead of insured-salary table — LI and NHI use bracketed insured salary, not gross pay. (2) Forgetting the LPA 6% is on top of gross wages, not deducted from them. (3) Under-reporting bonus pay for NHI supplementary premium — the NHIA audits annually. (4) Missing dependent enrollment for employees with spouse or kids who lack their own NHI coverage. (5) Not deducting voluntary LPA contributions on the employee tax return — workers lose the deduction every year they forget.
Last updated May 2026. Sources: Bureau of Labor Insurance (Taiwan) and National Health Insurance Administration. Rates verified against 2026 published tables.