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This Act applies to the persons below as designated under the Labor Standards Act, but does not include those whose pensions are appropriated in accordance with the Private School Act:
1. Workers holding ROC citizenship;
2. Foreigners, people of China, Hong Kong or Macao residents who have married ROC nationals and registered a household in the Republic of China, and who have residency status and are permitted to work in Taiwan;
3. Foreigners, people of China, Hong Kong or Macao residents in the preceding subparagraph who have divorced their spouses or whose spouses have passed away, and who are permitted in accordance with relevant laws and regulations to continue to reside and work in Taiwan.
4. Foreigners other than those mentioned in the preceding two subparagraphs who are permitted to reside permanently in accordance with the relevant provisions of the Immigration Act and are employed in Taiwan.
ROC nationals and persons referred to in subparagraphs 2 through 4 of the preceding paragraph who satisfy any one of the following statuses may voluntarily make payments for and claim a pension in accordance with the Act:
1.Employers who actually engage in labor work;
2.Self-employed operators;
3.Commissioned workers;
4.Workers not designated under the Labor Standards Act.

Employees, who were covered by the Labor Standards Act prior to the enforcement of the Act and still work for the same business entity after the enforcement of the Act, may choose to be continuously covered by the retirement mechanism in the Labor Standards Act; provided, however, that if they resign from their current jobs and are re-employed, they shall be subject to the pension system of the Act.
A civil servant also with employee status, who continues working at a business entity that was formerly public-owned but has been privatized after the enforcement of the Act, may choose the retirement mechanism prescribed in the Labor Standards Act or the pension system of the Act.

The pension system of this Act shall apply to the following persons from the date specified in the following subparagraphs:
1.Persons referred to in subparagraphs 2 and 3 of Paragraph 1, Article 7 and workers who have obtained ROC citizenship after July 1, 2010, shall be covered by the pension system of this Act from the date when the amended articles came into effect on December 31, 2013.
2.The persons referred to in subparagraph 4 of Paragraph 1 of Article 7 shall be covered by the pension system from the date of implementation of the provisions amended by the Act on April 26, 2019.
3.In accordance with the preceding two subparagraphs, persons who meet the identifying criteria as designated by the amendments shall be covered by the pension system from the date they attain such an identity.
However, this shall not apply to persons designated by the preceding paragraph who were hired prior to the enactment of the amended articles and have remained employed by the same business entity thereafter, as well as those who notify their employers in writing, within six months from the date of implementation of this Act, that they shall continue to be covered by the pension regulations of the Labor Standards Act.
Those who have notified their employers in accordance with the preceding paragraph that they will continue to be covered by the pension regulations of the Labor Standards Act may not choose to be covered by the pension system of this Act.
For workers who are eligible in accordance with Paragraph 1 of the pension system of this Act, their seniority prior to the applicability of this Act shall be determined in accordance with Article 11.
Employers shall file for deposit and payment procedures with the Bureau of Labor Insurance for their workers who are eligible in accordance with Paragraphs 1 and 2 of the pension system of this Act. Filing of such request shall not be made later than 15 days from the specified deadline in Paragraphs 1 and 2.

Within the period from the promulgation of the Act to one day prior to the enforcement of the Act, employers shall inquire in writing with their employees about their options between the pension system of the Act or retirement mechanism in the Labor Standards Act; employees who have not made a firm decision after the expiration of prescribed period shall continuously be covered by the retirement mechanism in the Labor Standards Act on the date of enforcement of the Act.
Employees, who continuously choose to be covered by the retirement mechanism in the Labor Standards Act on the date of enforcement of the Act, may within five years choose to be covered by the pension system in the Act.
Employers shall in accordance with the following provisions file the application for contribution to the Bureau for employees covered by the pension system in the Act:
1.For those who choose to be applicable in accordance with Paragraph 1, the application shall be filed within 15 days after the enforcement of the Act.
2.For those who choose to be applicable in accordance with Paragraph 1, the application shall be filed within 15 days on the date of their choice.
3.For business entities that are newly established after the enforcement of the Act, the application shall be filed within 15 days on the date of their establishment.

Once employees are covered by the pension system of the Act, they no longer have the option to be covered by the retirement mechanism of the Labor Standards Act.

Employees, who were covered by the Labor Standards Act prior to the enforcement of the Act, who still work for the same business entity after the enforcement of the Act and choose to be covered by the pension system of the Act, their seniority prior to their application to the Act shall be reserved.
When a labor contract is terminated in accordance with Article 11, the proviso of Article 13, Article 14, Article 20, Article 53 and Article 54 of the Labor Standards Act or Article 23 and Article 24 of the Protection for workers Incurring Occupational Accidents Act, an employer shall in accordance with the foresaid statutes use the average wage at the time of the labor contract’s termination to calculate the severance or retirement payment for an employee’s reserved seniority referred to in the preceding paragraph, and the severance or retirement payment shall be paid within 30 days after the termination of the labor contract.
During the continuing period of a labor contract, when an employer and an employee mutually agree to provide payment based on an employee's calculated seniority, as referred to in Paragraph 1, such a payment shall amount to no less than the payment prescribed by Article 55 or Article 84-2 of the Labor Standards Act, and such an agreement shall be upheld.
A civil servant also with employee status shall on the date of privatization claim retirement payments for their seniority prior to the privatization in accordance with relevant statutes and regulations covered by retirement prior to the privatization. However, the remaining civil servants shall suspend their monthly pension payments and related rights until they leave the privatized enterprise.

When workers who are covered by the pension system of this Act and whose seniority is applicable after this Act is implemented, are terminated by labor contract in accordance with Article 11, the proviso of Article 13, Article 14 and Article 20 of the Labor Standards Act or Article 23 and Article 24 of Protection of Workers Suffering from Occupational Injuries and Diseases Act, they shall have their severance pay paid by the employer based on their seniority: an amount equal to half a month of average wages for every full year of employment, and in proportion for a period of employment lasting less than one full year; the foresaid severance shall not exceed more than six months of average wages, and is not covered by Article 17 of the Labor Standards Act.
Severance pay calculated pursuant to the preceding paragraph shall be paid within 30 days after the termination of a labor contract.
Workers choosing to continue to be covered by the pension regulations of the Labor Standards Act shall have their severance paid in accordance with Article 17, Article 55 and Article 84 of the Labor Standards Act.

For protecting employees' retirement payment, employers shall precisely calculate the appropriation rate of labor retirement reserve funds in accordance with such factors as the number, wages, seniority and turnover rate of those employees who are covered by the retirement mechanism in the Labor Standards Act and reserve their seniority prior to the application of the Act, and shall continuously appropriate labor retirement reserve funds sufficiently for each month in accordance with Paragraph 1 of Article 56 of the Labor Standards Act for five years to provide for employees' retirement payment.
When an employer and an employee agree to pay off the retirement payment in accordance with Paragraph 3 of Article 11, it may be paid from the labor retirement reserve fund account established in accordance with Paragraph 1 of Article 56 of the Labor Standards Act.
The retirement payments that shall be given to employees in accordance with Paragraph 4 of Article 11 shall be handled pursuant to Article 9 of the Act of Privatization of Government-Owned Enterprises.