TAIPEI (TVBS News) — Taiwan's Legislative Yuan passed the third reading of the "Pension Contribution During Mandatory Military Service Act" (義務役服役期間提繳退休金條例) on Friday (Nov. 10), mandating the government to start deducting a 6% pension from servicemen's salaries beginning Jan. 1.
Under the new law, during their military service, servicemen will have 6% of their total wages and allowances deducted monthly as pension contributions. These funds will be deposited into personal pension accounts managed by the Labor Insurance Bureau of the Ministry of Labor.
Upon completing their military service, individuals will be eligible to participate in pension systems of various sectors, adhering to the respective laws and regulations. Based on a monthly salary of NT＄20,000 for servicemen, they could accumulate nearly NT＄90,000 in pension funds by the age of 60.
In 2022, Taiwan's Executive Yuan endorsed a plan to strengthen and restructure the national defense force. This plan includes extending the service period for men born after 2005 from the original four months to one year, effective Jan. 1, 2023.
The Ministry of National Defense (MND) emphasized that this act is designed to integrate military service into one's career trajectory, treating it as an essential part of personal professional development.
