The amendments to the Act for the Recruitment and Employment of Foreign Professionals (Act) were promulgated by the President on 24 September 2025, and enacted on 1 January 2026. According to the amendment to Article 24 of the Act, foreign professionals and foreign special professionals engaging in professional work (Foreign Professional) are no longer required to obtain permanent residency in order to be eligible for the pension scheme under the Labor Pension Act (New Pension Scheme). We summarize the amendments below:
1.Scope of Application: The New Pension Scheme applies to the Foreign Professional. However, if the Foreign Professional has been continuously employed by the same employer before 1 January 2026, and expresses his/her intention to continuously apply to the pension scheme under the Labor Standards Act (Old Pension Scheme) in writing against the employer before 30 June 2026, the New Pension Scheme shall not apply. Once the Foreign Professional chooses the application of the Old Pension Scheme, he/she cannot change to select the New Pension Scheme afterwards. (Paragraphs 1 and 2, Article 24 of the Act)
2.Calculation of Seniority: If the Foreign Professional chooses the application of the New Pension Scheme, his/her previous seniority under the Old Pension Scheme shall be retained. However, the seniority under the Old Pension Scheme mentioned above may be settled by the mutual agreement of the employer and the employee, provided that the settlement amount is not less favorable than the calculation standard of pension under the Labor Standards Act. (Paragraph 3, Article 24 of the Act)
3.Employer Obligations: The employer shall apply for the pension contribution of the New Pension Scheme with the Bureau of Labor Insurance (BLI) for the Foreign Professional. For the Foreign Professional who fails to express his/her intention to continuously apply to the Old Pension Scheme before 30 June 2026, the employer shall apply for the pension contribution with the BLI for the Foreign Professional no later than 15 July 2026 (Paragraph 4, Article 24 of the Act)
4.Restrictions on Selection: If the Foreign Professional has applied to the New Pension Scheme before 1 January 2026 or expressed his/her intention to continuously apply to the Old Pension Scheme, it shall be subject to provisions of respective scheme accordingly, and the Foreign Professional cannot re-select the applicable pension scheme. (Paragraph 5, Article 24 of the Act)
5.Transitional Provisions: For the Foreign Professional who has already obtained permanent residency before 1 January 2026, and has not yet expressed his/her intention to continuously apply to the Old Pension Scheme against the employer, if the expression period for the application of the Old Pension Scheme has not yet expired, he/she may still make such expression before 30 June 2026. If the Foreign Professional fails to do so within the given timeframe, the pension contribution under the New Pension Scheme shall be made by the employer from the date when the Foreign Professional obtained the permanent residency. (Article 24, Paragraph 6 of the Act).
David Tsai / Eden Hsieh
