Newsletter
PENSION RULES FOR FOREIGN FIRMS' TAIWAN REPRESENTA-TIVES
Article 7 of the Labor Pension Act (LPA), and Article 20 of its Enforcement Rules, provide that an employer who in fact performs labor may make voluntary pension contributions. But the LPA does not allow a business entity to make pension contributions for such employer in the same way as it may for ROC-national employees to whom the Labor Standards Act does not apply, and for mandate managers who are not employ-ees.
In an interpretation on the issue of whether the LPA applies to the Taiwan branch manager of a foreign company, the Council of Labor Affairs stated that as the branch manager in question was registered as the company's litigatory and non-litigatory representative in Taiwan, and thus was a responsible person of the company under the Company Act; and in the company's for-profit enterprise registration with the Taipei City Government, he should be regarded as an employer who actually performs labor, and could make voluntary pensions contributions up to 6% of his income. But the business entity could not additionally make contributions on his behalf.