The premium rate for the Insurance will be 6.5% for the first year of the implementation of this act. The rate will be increased by 0.5% on the third year and another increase of 0.5% for every 2 years thereafter until it reaches the limit of 12%. But no increase will be implemented if the balance of the insurance fund is enough to pay for the pension payment for the next 20 years.

The monthly insurance amount for the first year of the implementation of this act will be decided according to the first grade on the insured salary grading table of labor insurance. From the 2nd year on, adjustments will be made according to the accumulated growth rate for consumer price index published by the central Budget, Accounting and Statistics institutions is reaches 5%.

The burden of premium for the Insurance will follow the rules stipulated below:
1 For low-income and middle-low-income insured persons qualified for the Social Aid Law living in the municipality area:
(1) For low-income insured persons, the premium will be fully paid by the municipality competent authorities ; in county (city) areas, the central competent authority will pay for 35% of the premium and the county(city) competent authorities will pay for the rest 65%.
(2) For middle-low-income insured persons, the insured persons will have to pay for 30% of the premium and the municipality competent authorities will pay for the balance of 70% of the premium in the municipality area; as for county (city) areas, the central competent authority will pay for 35% of the premium and the county (city) competent authorities will pay for the remaining 35% of the premium.
2 For the insured persons whose incomes fail to reach certain standards:
(1) When the monthly income per person, the amount of total family income divided by the number of the family, for the insured persons fails to reach 1.5 times of the lowest living expense of that specific year and does not exceed 1 time of the average monthly consumption per person in Taiwan area, the insured persons will have to pay for 30% of the premium and the municipality competent authorities will pay for the balance of 70% of the premium in the municipality area; as for county (city) areas, the central competent authority will pay for 35% of the premium and the county(city) competent authorities will pay for the remaining 35% of the premium.
(2) When the monthly income per person, the amount of total family income divided by the number of the family, for the insured persons does not reach the 2 times of the lowest living expense of that specific year and does not exceed 1.5 times of the average monthly consumption per person in Taiwan area, the insured persons will have to pay for 45% of the premium and the municipality competent authorities will pay for the balance of 55% of the premium in the municipality area; as for county (city) areas, the central competent authority will pay for 27.5% of the premium and the county(city) competent authorities will pay for the remaining 27.5% of the premium.
3. The insured persons qualify for the legally stipulated mentally/physically challenged and with proof
(1) The central competent authority will pay full amount of the premium for extremely severe or severe mentally/physically challenged insured persons.
(2) The medium mentally/physically challenged insured persons pay 30% of the premium and the central competent authority will pay the remaining 70% of the premium.
(3) The mild mentally/physically challenged insured persons pay 45% of the premium and the central competent authority will pay 27.5% of the premium. Competent authorities of the municipality, county, or city governments will pay for the remaining 27.5% of the premium.
4. Other insured persons will have to pay 60% of the Premium and the central competent authority will pay for the remaining 40%.

Calculation of premium will start from the specific date when the insurance takes effect for the insured person until the specific date of stoppage or termination of the effect. If the actual insured days of the specific month when the insurance comes into effect, stops or terminates are less than a full month, it is calculated proportionally by the actual insured days (on the basis of 30 days per month).
The insurer will calculate the premium paid by the insured persons on a bi-month basis. Written notice of premium bill will then be sent by the end of the third month requesting the insured persons to pay their premium, through the transfer of account by financial institutions or other methods designated by the insurer, by the end of the fourth month.
In case the insured persons for joining the insurance less than a full month, the insurer is entitled to calculate their monthly premium with their next premium, but the notice of premium bill should be sent at least once a year.
The insured person is eligible for paying the premium in advance. The prepaid period is limited to one year.
Premium paid by the insured person during the validation of the insurance is non-refundable. But premium over-paid or paid by mistakes which cannot be blamed on the insured person is not included.
The insurer is entitled to calculate the premiums paid by government of all levels under this Act by the end of May and November respectively. Besides the previous 6 months premium paid by the insured person and the premium is eligible for fully paid by the government of all levels, a addition of 15% of unpaid premium by the insured person should also be calculated. Deadlines for premiums paid by government of all levels are the end of June and December respectively, and the stipulations of this paragraph is traces back to October 1st, 2008. Before the implementation of amendments to this Act amended on June 13, 2011, the difference between premiums paid by government of all levels and premium calculated by the insured person who had paid will be deemed as prepaid premium for government of all levels.
The insurer is entitled to report various governments’ failure in paying their share of premiums under this act to the central competent authority which will then request the Executive Yuan to deduct the amount payable from the subsidy to each specific institution.

The insurer will send the written premium bill of December 2011 by the end of the January 2011 requesting the insured persons to pay before march 2012 the premium of December 2011, excluding the limits in stipulations of preceding article.

For the insured person and government of all levels fail to pay the premium before the deadlines as stipulated in the previous 2 articles, interests based on the one-year CD (Certificate of Deposit) interest rate of the Post Office savings account on Jan. 1st of that specific year will be imposed on a daily basis for every single day delayed starting from the next day of deadlines to the day before actual payment.
Interests based on the preceding paragraph under specific amount may be exempted from paying; the amount will be stipulated by the central competent authority.

The insured person who’s unable to pay the premium and the interests at lump sum is entitled to apply to the insurer requesting for payments in installments or postponement of the payments. The conditions of application, examination process, deadlines for payments in installments or postponement, and the regulations for other affairs to be followed will be drawn by the insurer which will then report these regulations to the central competent authority for verification and announcement.
The insured person and his or her spouse are jointly responsible for the unpaid premium and interests of the Insurance. The insurer is therefore entitled to send written notices requesting spouse’s payments within deadline if the insured person fails to pay the premium and interest under the act.

The insurer is entitled to suspend pension payment before the insured person pays the premium and interests. But payments in installments or delayed payments approved by the insurer according to the previous article is not included.
Premium for the period of temporary payment suspension will still be calculated and collected.
In case the insurer issues the payments, the premium that should be paid by the insured persons and has not been overdue, and the interest imposed for overdue payment of premium should be deducted from the payments, and be calculated into the insurance periods.

The insurance periods will not be calculated if the insured person fails to pay the premium and interests payable within deadline under Article 13 and Article 14.The insured person is not entitled to request for paying the premium and interests if the delay is over 10 years. However, the insured person is still entitled to request for paying the premium and interests and calculating his or her insurance periods if the cause of delay cannot be blamed on the insured person.