As Taiwan’s labor pension reform, commonly known as the “New Labor Pension System,” marks its 20th anniversary, more than 20 labor organizations and industrial unions rallied in front of the Executive Yuan today to file a petition. They criticized the system for “insufficient contributions,” which result in meager retirement security, and for excluding migrant workers from its coverage. The groups vowed to continue fighting until the government carries out meaningful reform.
The “Labor Pension Act,” or the new pension system, came into effect on July 1, 2005. To mark its 20th anniversary, labor groups such as Taiwan Workers' Alliance General Union, the Dignified Labor Legislative Reform Alliance,National Federation of Independent Trade Unions, Taiwan Railway Industry Union, Chunghwa Telecom Workers’ Union, Taiwan Freight Warehousing and Transportation Industry Union, the Taiwan International Workers Association (TIWA), Taiwan Association for Victims of Occupational Injuries, and various county and city labor federations gathered to demand pension reform.
According to statistics released by the Bureau of Labor Insurance in February, as of December last year, 1.87 million people received labor insurance old-age pensions, totaling NT$36.234 billion. On average, each recipient received NT$19,367 per month. For the labor pension (under the new system), workers who chose a lump sum received an average of NT$256,979, while those who opted for monthly payments received an average of NT$6,332 per month.
Labor groups and unions emphasized that, whether through monthly or lump-sum payments, the figures reflect how poorly the system supports Taiwanese workers in retirement. They identified “insufficient employer contributions” as the root problem. Furthermore, the government’s 2015 elimination of the “longevity annuity” undermined the original promise of “receiving payments for life,” effectively rendering that reform slogan a broken promise.
A street performance was staged during the protest, dramatizing a time traveler from 2005 discovering that housing prices have tripled and the number of migrant workers has increased, while real wages have only grown by 10%—making the current pension contributions woefully inadequate.
Labor groups also pointed out that the new pension system entirely excludes migrant workers. Currently, there are around 820,000 migrant workers in Taiwan, of whom 620,000 are employed in sectors covered by the Labor Standards Act. However, they are not eligible for the new labor pension scheme and, in theory, remain under the outdated retirement payout provisions of the old system.
Protesters chanted, “Local workers get too little, migrant workers get nothing, and pension reform is a lie,” declaring their determination to keep fighting until the pension system is truly reformed.
[CNA / Reporter Lai Yu-chen, Taipei ]2025/7/1 11:28 / Updated on July 1 at 19:41
[Photo by CNA reporter Hsieh Chia-chang]