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<\/p>\nLabor groups yesterday called on the government to raise employers\u2019 mandatory pension contributions to 15 from 6 percent, arguing that workers have not received a fair share of Taiwan\u2019s economic and productivity gains.<\/p>\n
\u201cOver the past two decades, Taiwan\u2019s workers have created greater economic value almost every year than they did before,\u201d Taiwan Solidarity Front Confederation of Trade Unions chairman Ho Cheng-chia (\u4f55\u653f\u5bb6) said at a news conference at the Legislative Yuan in Taipei.<\/p>\n
\u201cBut the additional profits they generated have not been reflected in their compensation,\u201d Ho said, citing a report last month by think tank Taiwan Political Economy Collaborative that found that the productivity-pay gap had widened further after 2023 with the growth of artificial intelligence.<\/p>\n
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Photo: CNA<\/p>\n
If the government really wants to address the problem of corporate profits not being fairly distributed to workers, \u201cthe most direct way is to raise employers\u2019 pension contributions,\u201d Ho said.<\/p>\n
He was referring to Taiwan\u2019s new labor pension system, introduced in 2005. <\/p>\n
The new system covers about 7.7 million workers, with employers required to contribute at least 6 percent of a worker\u2019s monthly wage to an individual pension account.<\/p>\n
In contrast, under the previous system, employers set aside 2 to 15 percent of wages, depending on factors such as seniority and expected retirement, in a pension reserve fund.<\/p>\n
Citing a National Audit Office report, Ho said that employers contributed an average of just 6.04 percent last year, which he said showed that most employers were contributing only the statutory minimum.<\/p>\n
The labor groups called on the government to raise the minimum rate, which has not been changed since 2005, to 15 percent.<\/p>\n
Chunghwa Telecom Workers\u2019 Union chairman Teng Ke-lien (\u9127\u514b\u5ec9) said that increasing pension contributions could serve as a form of deferred pay raise for workers.<\/p>\n
\u201cThe money is simply received later, and it can provide substantial protection for workers after retirement,\u201d Teng said.<\/p>\n
The groups also called for the government to help secure meaningful wage increases across state-run, foreign-invested and domestic private companies, saying that increases would do more to address long-term wage stagnation than a proposed universal NT$10,000 cash handout next year.<\/p>\n
However, the groups did not specify a target wage increase, saying it would depend on the industry and individual companies.<\/p>\n
Organizers said some unions are preparing or holding strike votes over labor disputes while more than 30 labor groups have backed the demands raised at the press conference and are discussing a broader Taipei mobilization in October over wages, pensions and labor rights.<\/p>\n","protected":false},"excerpt":{"rendered":"Labor groups yesterday called on the government to raise employers\u2019 mandatory pension contributions to 15 from 6 percent,…\n","protected":false},"author":2,"featured_media":828590,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,147,530,4083,4082],"class_list":["post-828589","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-personal-finance","tag-personalfinance","tag-the-taipei-times","tag-4082"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/828589","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=828589"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/828589\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/828590"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=828589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=828589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=828589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}