Taipei: Labor groups in Taiwan have issued a call to the government to increase employers' mandatory pension contributions from the current 6 percent to 15 percent, citing a disparity between workers' contributions to economic growth and their compensation. This demand was highlighted during a press conference held at the Legislative Yuan in Taipei.

According to Focus Taiwan, Ho Cheng-chia, chairman of the Taiwan Solidarity Front Confederation of Trade Unions, emphasized that despite the significant economic value generated by Taiwanese workers over the past two decades, their compensation does not reflect these contributions. He referenced a July report by the Taiwan Political Economy Collaborative, which noted an expanding productivity-pay gap exacerbated by the rise of AI after 2023.

Ho proposed that increasing employers' pension contributions is the most direct method to ensure fair distribution of corporate profits to workers. He pointed out the inadequacy of the current labor pension system, introduced in 2005, which covers approximately 7.7 million workers with a minimum employer contribution of 6 percent. In contrast, the previous system allowed for contributions ranging from 2 percent to 15 percent based on factors like seniority and expected retirements.

Ho further cited a National Audit Office report which revealed that employers contributed an average of just 6.04 percent last year, indicating many were adhering only to the minimum requirement. Labor groups are advocating for the government to increase this minimum rate, unchanged since 2005, to 15 percent.

Teng Ke-lien, Chairman of the Chunghwa Telecom Workers' Union, echoed the sentiment, suggesting that higher pension contributions would act as deferred wage increases, enhancing workers' financial security post-retirement. The labor groups also called for the government to facilitate meaningful wage increases across various sectors, arguing that these would be more effective in combating wage stagnation than a proposed universal cash handout in 2027.

When queried about specific target wage increases by CNA, the groups indicated that such figures would vary depending on industry and company. Meanwhile, some unions are preparing for potential strikes over ongoing labor disputes, with over 30 labor groups supporting the demands and planning a larger mobilization in Taipei in October to address issues related to wages, pensions, and labor rights.