New lazy bag for 2024

        What are the differences between the new system and the old one? Many new measures, such as the Minimum Wage Law, comprehensive tax benefits for the people, and the increase in childcare subsidies, have been officially implemented at the beginning of this year? What impact will it bring to personal rights again? In this issue, the Legal Column will provide you with a detailed analysis.

        The Minimum Wage Law is on its way, and the minimum wage has been raised

                After seven years, the Legislative Yuan passed the Minimum Wage Law on the third reading. The central competent authority is required by law to establish a "Minimum Wage Review Committee", which is regularly convened by representatives from labor, management, government, and academia in the third quarter of each year. The "Consumer Price Index Annual Growth Rate (CPI)" is also listed as a mandatory indicator, and 10 acceptable indicators such as "National Average Income" and "Minimum Cost of Living" are set, Considering the overall situation, establish a minimum wage.

        Starting from 2024, the minimum wage will be raised to a monthly salary of NTD27470 and an hourly salary of NTD183, with a growth rate of 4%; The range of labor and health insurance levels is also adjusted with salary growth. The salary agreed upon by both parties shall not be lower than the minimum wage, and violators shall face fines ranging from NTD 2 million to 1 million. Depending on the severity of the violation, the number of people involved, and the size of the business, the maximum amount may be increased to NTD 1.5 million. The competent authority shall publicly disclose the name of the public institution, the name of the person in charge, the date of disciplinary action, and the amount of fines imposed, and order them to make improvements within a specified period of time. Those who fail to make improvements within the specified period shall be punished on a per occurrence basis.

        Tax exemption for basic living expenses and employee meal allowances in the comprehensive office has been increased

        In response to the rise in prices and to alleviate the burden on the public, the Ministry of Finance has decided to implement measures to optimize and benefit the people's income tax system. When the people apply for comprehensive income tax in May 2024, their basic living expenses will be increased from NTD196000 per year to NTD202000 per year. In addition, the tax exemption for employee food allowance has been increased from NTD2400 per month to NTD3000, and the annual tax exemption has been increased to NTD36000.

        Additional childcare subsidies

        Starting from 2024, the Ministry of Health and Welfare will increase the amount of childcare subsidies for infants and young children aged 0-2. For families who choose "public childcare institutions," the monthly subsidy will be increased from NTD5500 to NTD7000; Families who choose "quasi public childcare services" will receive a monthly subsidy increase from NTD8500 to NTD13000. In addition, to encourage childbirth, the subsidy for the second child in the family will be increased by NTD1000; Children who rank third or above will receive an additional NTD2000 in subsidies.

        The statutory age for claiming labor insurance pension has been increased by one year

        According to the Labor Insurance Regulations, starting from the implementation of the pension system in 2009, the age for claiming elderly pension will be increased by 1 year every 2 years until the upper limit of 65 years is reached in 2026. Therefore, starting from 2024, the legal age for claiming elderly pension will be increased by 1 year from 63 years old, and full payment of elderly pension can only be made after reaching 64 years old. In other words, this adjustment will affect workers who were born in 1961 and have worked under labor insurance for at least 15 years. However, if the total length of labor insurance experience has exceeded 15 years, you can still choose to apply for the "Labor Insurance Reduction to Elderly Pension Payment" in advance. (Source: Ministry of Labor, Ministry of Finance, Ministry of Health and Welfare)

        *Image source: freepik

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