Labor & Health Insurance for Company Responsible Persons

In Taiwan, many businesses must navigate Labor Insurance and National Health Insurance requirements. But the rules can get confusing when it comes to a company's responsible person (負責人). This article walks through a series of common insurance questions for responsible persons.

1. Can a responsible person still enroll in Labor Insurance if the company has no employees?

The first question concerns a company with no employees at all — can the responsible person still be insured under Labor Insurance? Under the Labor Insurance Act, an employer who actually performs labor is eligible for voluntary enrollment. But once all employees have left and there are no more staff, the employer may no longer qualify as an "employer" under the Act, and would no longer be an eligible enrollee. In that case, the employer can file to deregister with the Bureau of Labor Insurance.

There's another option, though: if the responsible person qualifies as a self-employed worker, they can switch to enrolling through an occupational union as a self-employed person. This depends on the specific circumstances, but it's worth considering for the period after employees leave.

2. How does a responsible person's salary affect Labor Insurance enrollment?

The second question concerns how much salary a responsible person draws. Normally, a responsible person can choose whether to draw a salary. If they do, the company must insure them based on their actual salary. Note, though, that the maximum insured salary bracket for Labor Insurance is NT$45,800/month — even if actual salary is higher, the insured amount is capped there.

3. What if the health authority demands back payment because the responsible person wasn't previously insured through their own company?

Sometimes a responsible person wasn't insured through their own company in the past, but maintained health insurance through an occupational union instead. If the health insurance authority later demands the back-payment of the difference for insuring through their own company, is there any way to appeal?

Under the relevant regulations, an employer generally cannot be insured through an occupational union unless they have another primary job insurable elsewhere. So the responsible person may need to explain their past enrollment situation to the health insurance authority. If they're now insured through another company, they can also check with the authority whether they can be exempted from insuring through their own company.

4. If a responsible person chooses to draw a salary, can it be below the minimum wage?

The last question concerns whether a responsible person's salary, if they choose to draw one, can fall below the minimum wage. Under the Labor Standards Act, wages cannot be below the minimum wage, which is set by the government and adjusted periodically. (Note: the 2023 minimum wage was NT$26,400; from 2024 it was adjusted to NT$27,470.)

So if a responsible person chooses to draw a salary, it should be at least the minimum wage to stay compliant. Labor and health insurance premiums are generally calculated based on actual salary and cannot be below the minimum wage. We recommend setting a responsible person's salary in line with local legal requirements.

In summary, a company's responsible person needs to weigh several factors on Labor/Health Insurance — whether there are employees, salary amount, past enrollment history, and minimum wage rules. To stay compliant, we recommend working with insurance and tax authorities and setting enrollment and salary levels according to legal requirements. This protects both the company and the responsible person from legal and financial risk.

If you have questions about labor/health insurance or payroll calculations, feel free to contact our firm.