Taiwan NHI & Labor Insurance Guide 2026: Rates, Caps & Calculations

Overview: Social Insurance in Taiwan

Taiwan's social insurance system consists of two mandatory programs for most employees: National Health Insurance (全民健康保險, commonly called 健保 or NHI) and Labor Insurance (勞工保險, commonly called 勞保). Together, these programs provide universal healthcare coverage and worker protections including disability, maternity, and retirement benefits.

Both programs are funded through shared contributions between employees, employers, and the government. Premiums are calculated as a percentage of the employee's insured salary (投保薪資), which is determined by matching the employee's actual monthly pay to a grade table (投保薪資分級表) published by the Bureau of National Health Insurance and the Bureau of Labor Insurance.

In addition to NHI and Labor Insurance, employees participate in the Labor Pension system (勞工退休金, commonly called 勞退). Under the New Labor Pension system, employers must contribute 6% of the employee's monthly wage to an individual retirement account. Employees may voluntarily contribute an additional 1%–6%, which is tax-deductible. The employer's 6% contribution is on top of salary and does not reduce take-home pay.

Use the WageEngine Taiwan calculator to see the exact NHI and Labor Insurance deductions for any salary level.

National Health Insurance (健保) Premiums

NHI provides universal healthcare coverage to all residents of Taiwan. The premium is shared between employee (30%), employer (60%), and government (10%). The overall premium rate in 2026 is 5.17% of insured salary.

The employee's share is therefore approximately 5.17% × 30% = 1.551% of insured salary. For an employee earning NT$50,000/month, the insured salary grade is NT$50,600. The monthly NHI premium is approximately NT$50,600 × 1.551% = NT$785.

The insured salary grade table has a minimum of NT$27,470 (Grade 1) and a maximum of NT$219,500 (Grade 63). Employees earning above NT$219,500/month have their NHI premium capped at the Grade 63 amount — approximately NT$3,404/month for the employee share.

Important details: • NHI premiums also cover dependents. If you have dependents (spouse, parents, children under 20) registered under your NHI, you pay the same percentage for each dependent — but capped at 3 dependents. Dependent #4 and beyond are free. • The supplementary premium (補充保費) of 2.11% applies to six categories of non-regular income: bonuses exceeding 4 months of insured salary, part-time salary, professional practice income, rental income, dividend income, and interest income exceeding NT$20,000. • Employer NHI cost is roughly double the employee share (60% vs 30% of total premium).

Labor Insurance (勞保) Premiums

Labor Insurance provides protections for ordinary incidents (illness, injury, disability, old age, death) and maternity benefits. The ordinary accident insurance rate in 2026 is approximately 12% of insured salary (including the employment insurance component of 1%).

The cost is shared: employee pays 20%, employer pays 70%, and government pays 10%. The employee's share is therefore approximately 12% × 20% = 2.4% of insured salary.

For an employee with insured salary of NT$45,800 (the current maximum grade), the monthly Labor Insurance premium is approximately NT$45,800 × 2.4% = NT$1,099. Note that the Labor Insurance salary cap (NT$45,800/month in 2026) is much lower than the NHI cap, so higher-income employees hit the ceiling earlier.

Key details: • Occupational accident insurance (職災保險) is paid entirely by the employer. The rate varies by industry (0.04%–1.16%) and is not deducted from the employee's pay. • Employment Insurance (就業保險) at 1% is included in the Labor Insurance rate. It provides unemployment benefits, early reemployment incentives, and parental leave allowances. • Labor Insurance covers employees aged 15–65. Workers over 65 who continue working are still covered by occupational accident insurance but not ordinary accident insurance. • The insured salary grade table for Labor Insurance ranges from NT$27,470 to NT$45,800. Even if your actual salary is NT$100,000/month, your Labor Insurance premium is calculated on NT$45,800.

To see the combined effect of NHI and Labor Insurance on your paycheck, try the WageEngine calculator and check the breakdown section.

Labor Pension (勞退) Contributions

The New Labor Pension system (勞工退休金新制) requires employers to contribute 6% of each employee's monthly wage to an individual pension account managed by the Bureau of Labor Insurance. This contribution is on top of salary — it does not reduce the employee's take-home pay.

Employees may voluntarily contribute an additional 1%–6% of their monthly wage (自願提繳). This voluntary contribution is deducted from your salary before income tax is calculated, making it one of the most effective tax-saving tools available to salaried workers in Taiwan.

For example, an employee earning NT$60,000/month who voluntarily contributes 6% (NT$3,600/month) reduces their annual taxable income by NT$43,200. For someone in the 12% bracket, this saves approximately NT$5,184 in income tax per year — while building retirement savings.

The monthly wage used for pension contribution has a ceiling of NT$150,000. The retirement account earns a guaranteed minimum return no lower than the two-year fixed deposit rate. Upon reaching age 60 with 15+ years of contributions, the pension can be received as a monthly annuity; otherwise, it is paid as a lump sum.

Note: The WageEngine calculator currently shows NHI and Labor Insurance deductions. The employer's 6% Labor Pension contribution is not deducted from your salary and is therefore not shown in the take-home calculation. Voluntary contributions would reduce both your taxable income and your take-home pay.

Calculating Your Total Social Insurance Cost

To calculate your total monthly social insurance deductions as an employee, add NHI and Labor Insurance:

**Example: NT$50,000/month salary** • NHI insured salary grade: NT$50,600 • NHI employee premium: NT$50,600 × 1.551% ≈ NT$785 • Labor Insurance insured salary grade: NT$45,800 (capped) • Labor Insurance employee premium: NT$45,800 × 2.4% ≈ NT$1,099 • Total monthly deduction: ≈ NT$1,884 (3.77% of gross)

**Example: NT$80,000/month salary** • NHI insured salary grade: NT$80,200 • NHI employee premium: NT$80,200 × 1.551% ≈ NT$1,244 • Labor Insurance employee premium: NT$45,800 × 2.4% ≈ NT$1,099 (still capped) • Total monthly deduction: ≈ NT$2,343 (2.93% of gross)

**Example: NT$150,000/month salary** • NHI insured salary grade: NT$150,000 • NHI employee premium: NT$150,000 × 1.551% ≈ NT$2,327 • Labor Insurance employee premium: NT$45,800 × 2.4% ≈ NT$1,099 (capped) • Total monthly deduction: ≈ NT$3,426 (2.28% of gross)

Notice that the effective social insurance rate decreases as salary increases, because Labor Insurance caps at NT$45,800 and NHI caps at NT$219,500. This makes Taiwan's social insurance system somewhat regressive at higher income levels — though income tax progressivity more than compensates.

For your exact figures, enter your salary in the WageEngine calculator. Compare different salary levels such as NT$600,000/year vs NT$1,200,000/year to see how the deduction percentages shift.