Taiwan’s labor fund reported a strong first half, according to figures released by the Bureau of Labor Funds under the Ministry of Labor. As of the end of June 2026, the overall labor fund had reached NT$8.8955 trillion in scale, with cumulative investment gains of NT$2.2024 trillion in the first six months of the year and a cumulative return of 28.46%. June alone contributed NT$77.2 billion in gains.
New labor pension fund reached NT$5.79635 trillion
Among the underlying funds, the new labor pension fund had grown to NT$5.79635 trillion in managed assets. Its first-half gain came to NT$1.52786 trillion, for a return of 28.19%.
Using roughly 13.1 million active accounts participating in profit distribution as a reference, the report estimated that the average first-half gain allocated to each worker’s individual account was about NT$111,600. That distribution is expected to be credited by the end of March 2027.
10-year average returns stayed above 12%
Looking at longer-term performance, the article said the labor fund and the national pension fund posted average annual returns of 12.24% and 12.35%, respectively, over the past 10 years. Their average returns over the past five years were 15.85% and 15.62%.
Even with the strong first-half performance, the report said markets remain focused on long-term inflation pressure linked to geopolitical frictions. It described higher energy prices as part of that backdrop and said inflation remains a risk to real purchasing power.
Voluntary contributions and tax deductions
With Taiwan’s statutory claiming age for labor insurance old-age pension benefits fully raised to 65 this year, retirement planning has become a central issue for workers, the article said. In addition to the employer’s required monthly contribution of 6%, workers can choose to make voluntary contributions ranging from 1% to 6% of their monthly salary.
That amount can be deducted directly from an individual’s annual gross consolidated income for tax purposes, while also receiving a minimum guaranteed return no lower than the interest rate on a local bank’s two-year time deposit. The report said a higher voluntary contribution rate during a worker’s career can help expand the principal in the individual pension account and better address the erosion of purchasing power caused by inflation.
Under the new labor pension system, both employer and employee contributions continue to accumulate in an individual account, and workers can check contribution amounts and returns online at any time. Once a worker reaches age 60 and has at least 15 years of service, they can choose either a lump-sum withdrawal or monthly pension payments.
Rule change takes effect on Aug. 1
The article also said the labor pension system will undergo a policy upgrade in 2026. Starting Aug. 1, 2026, employers may not refuse an employee’s application to begin or stop voluntary pension contributions.
Separately, beginning in March 2026, monthly pension claims were given a new 30-day cooling-off period. Workers with at least 15 years of contribution history who choose monthly pension payments can apply to switch to a lump-sum claim within 30 days from the date the first payment is credited, though the change can only be made once.