Taiwan Pension System (國民年金 · 勞保 · 勞退)

Taiwan's old-age income support runs on three pillars: ① the old-age benefit of 勞工保險 (Labor Insurance) for employees, ② 國民年金 (National Pension Insurance) for those not covered by Labor Insurance, and ③ 勞工退休金 (commonly "勞退" / Labor Pension), an individual defined-contribution account on top. The mental model is similar to Korea's National Pension + retirement pension + basic pension structure, but coverage and the operating bodies differ — so you need to be clear about your own employment status.

1) 勞工保險 old-age benefit

• Coverage: employees of workplaces with five or more workers (and several other categories) are auto-enrolled.
• The 2026 contribution rate is around 12%, split between employer, employee, and government (with scheduled annual increases).
• The old-age benefit can be taken as either a monthly pension (with sufficient insured years) or as a lump sum; the standard claim age is 65 (being raised in steps).
• The pension formula multiplies insured years by the average insured wage and an accrual factor; the insured wage is subject to a ceiling.

2) 國民年金 (National Pension Insurance)

• Introduced in 2008. Covers the self-employed, homemakers, and unemployed residents who are not enrolled in Labor Insurance, civil-servant insurance, or military insurance.
• The contribution rate is around 9.5–10%, with partial government subsidy.
• Standard claim age is 65, and the system also pays disability and survivor benefits.

3) 勞工退休金 (新制 勞退, Labor Pension)

• A defined-contribution individual account in force since 2005. Employers must deposit at least 6% of monthly wages into the employee's named account.
• Employees may voluntarily contribute up to a further 6%, and that voluntary portion is tax-deductible.
• Funds can be drawn from age 60 as a lump sum or annuity, separate from the Labor Insurance old-age pension — effectively a "second pension."
• The account follows the worker between jobs, similar in spirit to a Korean DC-type retirement pension.

From an immigrant perspective

• No Korea–Taiwan social security agreement: Korean National Pension contributions and Taiwan Labor Insurance / National Pension contributions cannot be totalised. You must satisfy each system's minimum insured period independently to receive each pension.
• Korean migrants typically choose between a lump-sum refund of Korean NPS contributions or voluntary continuation; many end up drawing the Korean pension from age 60 alongside Taiwanese benefits.
• Foreign workers in legal employment are also enrolled in Labor Insurance and Labor Pension; with short insured periods, a lump-sum payout is often the realistic option.
• After naturalisation, eligibility for Korean NPS voluntary enrolment may be affected by your loss of Korean nationality — confirm in advance.

Things to watch

• Contribution rates, insured-wage ceilings, and standard claim ages are typical 2026 levels and are revised every year.
• Labor Insurance is "insurance" in nature, so short insured periods often qualify only for a lump sum. Check your own contribution history directly with 勞保局.
• Decisions about Korean NPS at naturalisation (lump-sum vs. voluntary continuation) are hard to reverse — speak to qualified tax and pension advisors in both jurisdictions.

Official guidance: 勞動部 勞工保險局 (BLI), 勞動基金運用局 (BLF)