Settle Your Old-System Pension While Still Working? Taiwan’s New Rules for Old-System Workers Explained

Data as of: checked on 2026-10-27 against the Ministry of Labor’s 2026-07-15 press release, the 2026-07-22 FAQ and the 2026-10-06 implementation results; provisions per Articles 21-2 to 21-4 of the Enforcement Rules of the Labor Pension Act. This post explains the rules; eligibility is governed by the regulations and Ministry of Labor notices.

This short had 34,000 Facebook plays. The rule only took effect in July 2026, and many old-system-only workers still don’t know about it.

The conclusion in three sentences:

• Old-system-only workers can now contribute voluntarily. Up to 6% of monthly wages, without changing their status.
• If eligible, they can “settle while employed.” If they already contribute, meet old-system retirement conditions, are still employed, and reach a written agreement with the employer, their old-system pension moves in full into their own labor pension account.
• It isn’t cash. The money goes into a retirement account and can generally only be withdrawn from age 60.

Where I stand: I don’t have a personal case, so this post only lays out the rules. My view is simple: settling early needs your boss’s agreement; saving for your own retirement doesn’t.

First: this is the labor pension, not Labor Insurance

The new rule changes the old-system part of the labor pension (勞退), and has nothing to do with the Labor Insurance (勞保) old-age benefit.

“Old-system-only” means people who chose to stay under the old system when the new system started in 2005 and have stayed with the same company.

The new rule: from July 17, 2026

Step 1: old-system workers can contribute voluntarily

Enforcement Rules Article 21-2: old-system-only workers can contribute voluntarily up to 6% of monthly wages into their own labor pension account.

• Their status stays old-system; they don’t become new-system
• The employer doesn’t have to add a new-system 6% because you contribute
• The employer can’t refuse to report your voluntary contribution

Step 2: if eligible, the old-system pension can be “settled while employed”

Enforcement Rules Article 21-3 — all four conditions are needed:

1. You’re already contributing voluntarily
2. You meet the retirement conditions of Labor Standards Act Article 53 or 54
3. Your employment contract is still in effect (you’re still employed)
4. You and your employer agree in writing

If so, the employer must move the old-system pension in full, directly into your labor pension account.

Step 3: years worked afterwards are counted separately

Years worked after settlement are calculated separately under Article 21-4, with a combined maximum of generally 45 base units. Contract and annual-leave seniority don’t reset.

The official example: where NT$2 million comes from

The Ministry of Labor’s hypothetical example: age 55, 25 years at the same company, average wage of NT$50,000 at settlement.

• Old-system base units: 2 per year for the first 15 years, 1 per year after; 25 years = 40 units
• 40 units × NT$50,000 = NT$2 million, moved in full into the labor pension account

If they work 5 more years and retire with an average wage of NT$60,000, the 5 new units are calculated separately at NT$300,000.

This is the government’s hypothetical example; not everyone gets NT$2 million. Your amount depends on your own years and average wage.

As of September 30, 2026, 200 employers, 666 workers and nearly NT$2.1 billion had completed settlement, an average of about NT$3.15 million per person.

The biggest problem: what if the boss says no?

When the rule launched, labor groups worried about exactly this. Settling while employed requires a written agreement from both sides; if the company disagrees, that path is closed.

But one thing doesn’t depend on anyone: voluntary contributions. The employer can’t refuse to report them, and you can contribute up to 6% of your wages each month for yourself.

What I really want to say is something bigger:

Saving for your own retirement doesn’t need your boss’s approval. When your paycheck comes in, set part of it aside for your future self and buy a market-cap ETF — don’t wait until the end of the month to save whatever’s left.

That’s what I call “paying your future self first” (財富自提). Voluntary labor pension contribution happens inside a legal account; paying your future self first is my own approach. They’re separate, but the spirit is the same: save first, then spend.

FAQ

The short video

Further reading

Lazy conclusion

懶大

金融科技新創 CEO | 獨立財務顧問

1. Old-system workers can contribute voluntarily: from 2026-07-17, up to 6% of wages; status unchanged, and employers don’t add a new-system 6%
2. Four conditions to settle while employed: contributing, meeting retirement conditions, still employed, written agreement — then the full old-system pension goes into your account
3. It isn’t cash: generally withdrawable only from 60
4. 666 workers and nearly NT$2.1 billion so far, but the employer must agree

Settling early needs your boss’s agreement; saving for your own retirement doesn’t.

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Sources

• Ministry of Labor press release, 2026-07-15 (mol.gov.tw/1607/1632/1633/95515/post)
• Ministry of Labor FAQ, updated 2026-07-22
• Ministry of Labor implementation results, 2026-10-06 (mol.gov.tw/1607/1632/1633/99431/)
• Enforcement Rules of the Labor Pension Act Articles 21-2, 21-3, 21-4; Labor Pension Act Article 11; Labor Standards Act Articles 53, 54, 55

This post explains the rules. It is not individual legal or benefit advice; eligibility is governed by the regulations and Ministry of Labor notices.