Labor insurance annuity increases five Q & A's

        In order to avoid inflation affecting the quality of life of retired workers, since May 2022, the Ministry of labor has adjusted the amount of labor insurance annuity payment for five years in line with the growth of the consumer price index. It is expected that 492000 people will benefit.

        1、 What is labor insurance annuity?

        The "labor insurance annuity" can be roughly divided into three types: the "old age annuity," "disability annuity," and "survivors' annuity." it is a fixed monthly insurance payment that the insured can receive. It not only lives to get old, but also gets more the longer it is insured.

        Many people mistakenly believe that the "old-age pension" of labor insurance is the "labor pension." but the two systems are actually very different, and they will not affect each other. The "labor pension" is based on the Labor Standards Law, which stipulates the protection that employers should provide when workers retire; The "labor insurance old age pension" means that as long as workers pay premiums according to regulations, they can apply for payment when they meet certain conditions. Even workers without a certain employer or who are self-employed can participate.

        2、 Eligibility for payment of labor insurance annuity

        According to the labor insurance regulations, a worker who is 60 years old and has 15 years of experience in labor insurance can apply for retirement insurance, apply for labor insurance old-age pension, and receive it monthly until the month of death. If you have not reached the age of applying for labor insurance and old-age pension, but want to apply for it in advance, the monthly amount will be reduced by 4% every 1 year in advance, up to 5 years in advance; If the applicant has met the age of claim but delays the claim, the payment amount will be increased by 4% for every 1 year delayed, and the maximum delay can be 5 years.

        3、 Why is labor insurance annuity increased?

        In order to protect the quality of life of retired workers, the labor insurance annuity has a mechanism to follow the price adjustment. According to the labor insurance Ordinance, when the "cumulative growth rate of the consumer price index (CPI)" (note) reaches 5%, the labor insurance payment will be increased according to the annual growth rate of those who are receiving the annuity payment. Although the labor insurance annuity has been adjusted in the past due to the cumulative growth rate of CPI, this year it has been adjusted for five years at a time, setting a record for the most years.

        4、 Which ethnic groups' labor insurance annuities will be increased?

        According to the calculation of the Directorate General of budget, accounting and statistics, the cumulative growth rate of CPI in the five years of 2009, 2010, 2013, 2014 and 2015 is 6.71%, 5.45%, 6.71%, 5.45% and 5.77% respectively, which has reached the statutory Adjustment Standard (5%). Therefore, from May 2022, for those who start to claim the labor insurance annuity payment in the above years, they will receive the "monthly amount" × The "cumulative CPI growth rate" of the year, plus the amount of labor insurance annuity, shall be recorded before the end of the next month. As for applicants in other years, since the cumulative growth rate of CPI has not reached 5%, no adjustment will be made.

        (data source: Labor Insurance Bureau; tabulator / Hong Peishan)

        5、 How do I know if the labor insurance annuity has been increased? When will it be recorded?  

        Although the Bureau of labor insurance will not notify individual workers in writing, eligible workers received the increased labor insurance annuity on June 29. In order to avoid confusion among the public, two amounts were specially recorded. One is the original pension amount, and the summary of the passbook shows the original pension information; The other is the amount increased this time. The summary of the passbook shows "price adjustment". Since July, the two amounts will be displayed together. (source: Ministry of labor labor insurance bureau, economic daily)

        * Note: the calculation method of the cumulative growth rate of the consumer price index (CPI) = (the cumulative average CPI of the previous year (2021) / the cumulative average CPI of the starting year) - 1x100% (take 2 decimal places, and the third decimal place is rounded).