Employers in Taiwan grapple with ageing workforce

The number of older employees in Taiwan has increased by more than 64,000 over the past three years, at a time when employment among young Taiwanese continues to dip.

Attributing the falling number of young people in the workforce to Taiwan’s declining birth rate, the country’s Ministry of Labour reported that the number of young employees, or those who fall under the age range of 15-29 years old, fell by more than 53,000 over the past three years.

The ministry added that the number of employees contributing to the labour pension system aged 15 to 19, 20 to 24, and 35 to 39 fell from May 2020 to February 2023. The number of employed people in other age categories, on the other hand, increased. Employees aged 30 to 44 increased by more than 22,000, while those aged 45 to 64 rose by more than 390,000 and the number of those aged 65 — the statutory retirement age — or older increased by more than 64,000.

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Under Taiwan’s Labour Standards Act, companies must deposit no less than 6% of the salary of each employee covered by the act into their pension fund account, including re-employed older employees who are already receiving pensions.

Average monthly pension contributions have increased for all age groups over the past three years, with the 45-49 age bracket having the highest average of NT$50,714 (US$1649.12), while the average among 20 to 24-year-olds, at NT$27,035 (US$879.12), was almost as low as the minimum monthly wage of NT$26,400 (US$858.48). Employees aged 65 or older on average contributed NT$34,195 (US$1111.95), reported Taipei Times.