Q: If a foreign worker is re-designated an intermediate skilled foreign worker which labor pension system applies?

Answer:

(1) When foreign workers governed by the Labor Standards Act are not mandatory contributors as defined under the Labor Pension Act (new labor pension system) (for example foreign spouses, those with permanent residency etc), they are still subject to the pension system (old labor pension system) detailed in the Labor Standards Act.
(2) Before the establishment of the Ministry of Labor, the Council of Labor Affairs, Executive Yuan, on December 15, 2006, issued order Laotung Si Tzu 0950109148 indicating that the pay of foreign workers employed to engage in work detailed in Subparagraphs 8 to 10, Paragraph 1, Article 46 of the Employment Service Act can be calculated as part of “total monthly salary.” However, the scope of the above interpretation does not apply to intermediate skilled foreign workers employed under Subparagraph 11, Paragraph 1, Article 46 of the Employment Service Act.
(3) In summary, after an employer applies for a foreign worker to be re-designated an intermediate skilled foreign worker, a Labor Retirement Reserve Fund account must be established in accordance with Article 56 of the Labor Standards Act, with 2-15% of the monthly salary placed in the account. As to the application process to establish a Labor Retirement Reserve Fund account and required documents, ask the competent local labor authority “County, City Government Labor Bureau (Office) or Social Affairs Bureau (Office).”