More insurance expenses are to be expected soon! In accordance regulations, labor insurance rates go up 0.5 percentage points every two years. The next rate hike is scheduled next year. By then, on average, everyone's insurance expense will go up by NT$540 per person per year. Around 10.27 million workers will be affected.
Business is booming at this restaurant, which is open weeklong. The owner says he will have to hike prices next year due to rising operating costs, especially personnel expenses, which will go up next year with the labor insurance rate hike.
Wages are being hiked and labor insurance is also being hiked. Let's not forget commodities prices are also continually going up. We probably have to raise prices by NT$5 to NT$10.
Under Article 13 of the Labor Insurance Act, the rate is hiked 0.5 percent every two years. This means the current rate of 9.5 percent will go up to 10 percent next year. Employers also have to pay an employment insurance rate of 1 percent for a total monthly labor insurance rate next year of 11 percent. The hike affects an estimated 10.27 million workers, with labor insurance payments going up by an average of NT$540 per month per worker.
The minimum wage was just hiked, and then you have the one fixed day off, one flexible rest day policy making expenses go up. This makes overall operating costs go up. It'd be best if it could be put off for a while.
Employers are worried about the additional cost as well as the financial state of the labor insurance fund, which always seems close to bankruptcy. According to the ministry, labor insurance revenues and expenditures last year were, respectively, NT$363.4 billion and NT$389.5 billion. The shortfall of NT$26.2 billion was the largest since the 2008 financial crisis.